Going Green?
The worst part of running your studio is the pile of paper screaming at you, demanding your attention, fighting for your time, competing with…business! And now, paper is politically incorrect. So what are you supposed to do with all those receipts, bank statements, independent contractor agreements, W-2’s and 1099’s?
Getting rid of all those bits and pieces of paper would be good for the planet, but maybe not so good for you. As a studio owner, for example, can you really dispense with the lunch receipts for your office staff or the cell phone bill that includes your kids’ numbers along with your strictly-for-business phone number?
Structuring electronic record keeping may be more complicated than paying your bills online at midnight when you finally have a chance to sit down, but there are tools available now that make “going paperless” more doable and a lot less daunting.
All your forms can and should be saved to files on your computer. There is no reason not to have student applications, waivers, contracts, invoices-- in fact everything you need to run your studio--on your computer and ready to be tweaked by your office staff. It’s worth the initial legal fee to have your attorney draft generic forms, which you or your office staff can adapt as needed. For “new” employment contracts or independent contractor agreements, it’s smart to get your lawyer’s blessing, but by using her “form” it will take her a lot less time to look it over. Which means lower fees to you!
Scan and save any forms you need to fill out, like annual audits or statements that audits aren’t required. Try the scan function on your all-in-one printer/copier/fax/scanner or buy a scanner. They’re well priced now, and pretty reliable. Don’t delete your old applications for 501(c)(3) status, resale number, accreditation by state or private accrediting bodies. You may want or need to refer to long-since-forgotten information, so organize your files in a way that makes sense to you (not your 17-year old computer whiz), so you can retrieve old data quickly.
If you can’t open old documents, it may be because the software is obsolete. Even old Microsoft Word files can’t be opened with newer versions. Ask your computer whiz to help reformat old documents, or scan them in. As long as you’re scanning, save your lease, deed, mortgage or loan documents as well.
If you run out of storage space on your computer, you can expand the memory, or check out new, more sophisticated computers. The more comfortable you become with your computer, the more you will appreciate state-of-the art equipment. Consider buying one for each staff member, and networking the system.
For tax preparation, banks offer specialized online services to authorized “account managers”. Inexpensive software is available so your bookkeeper doesn’t have to spend the day with you, reviewing your checkbook, prodding your recollection of this deposit or that debit, and generally getting in your way. You might consider giving him access to your accounts by sharing your password. He will be able to see your bank statements, payments, even images of checks (both written and electronic), then create a coherent set of records and forward it to your accountant electronically. Your accountant will generate and file all your tax forms, including your employment tax forms, electronically. All that presumes, however, that the information your bookkeeper has access to is complete and accurate.