Colorado Sales Tax – Oh boy, oh boy, oh boy.

sales tax updates in colorado

Yes, we hear you. It’s always something in the State of Colorado. If you have sales tax, please read this!

First of all, this will affect ALL businesses who deliver taxable products in the State of Colorado. If you sell taxable products but DO NOT deliver the products, you can skip to the last section.

Retail Delivery Fee

If you deliver, you must now impose a $0.27 Retail Delivery Fee for every shipment. You will need to collect this $0.27 per delivery and remit this amount to the State of Colorado through your Revenue Online portal.  This fee must be listed on your invoice as a separate line item called “Retail Delivery Fees.”  

Incline Business Essentials is working with Quickbooks to determine how best to track this. If you are going to need to participate in this new requirement, it will complicate your sales tax, and we will be adjusting our prices accordingly. This is a new filing in addition to your current sales tax filing. Stay tuned for additional information.

For additional information, click here or contact the state of Colorado at (303) 238-7378. 

Retailers Who Do Not Deliver

The State is going to automatically sign ALL retailers up for this new Retail Delivery Fee. They have announced that you will have to manually “Opt Out”. If you do not “opt out”, you will receive notices from the State reminding you to remit IF you are required to.  

New Management Software

We’ve come a long way! Your Incline Business Essentials team is committed to providing you with the most excellent service possible. We are continually increasing our knowledge and use of technology to provide efficient services. We are excited to be launching a new software tool, Karbon, that will help us collect information from you and send financial reports to you in a timely manner. 

Karbon helps us track important deadlines and ensures that we complete thorough book reviews on a regular basis. Quality control is essential, and we firmly believe that Karbon will elevate our level of quality and service.

What this means to you: NOT MUCH! 

The change you will see is that when we request information, we will send you a checklist. You can upload documents easily through this request.  Then, you should check-off your task. Checking off your task, notifies us that your task is complete. 

We have tested this with several clients, and so far, so good!  The system is easy to use. Please be aware that when you reply and/or upload documents, this is a fully encrypted and secure system.  

We know that change is hard.  Thank you for your willingness to use this system. Rest assured that it is easy. We appreciate you so much and sincerely thank you for your business!

Contact us if you have any questions about Karbon!

What Is Bookkeeping?

In the simplest terms, bookkeeping is the act of recording every single financial transaction related to a business. This is the bare bones necessity to having financial records prepared for tax filing purposes. Bookkeeping organizes your expenses into categories that are needed for tax filing. For example, all purchases related to office supplies are categorized so that a total spent on these items can be recorded as business deductions on the tax return.

In real business, bookkeeping is so much more than described above.  Bookkeeping services will vary depending on the nature of your business.  Here are some of the primary services that a bookkeeper might handle.

Primary Bookkeeping Services

  1. Track the bank accounts and credit card accounts to ensure that every transaction is captured accurately.  
  2. Track payables and might be responsible for ensuring that bills are paid
  3. Invoice your customers and track receivables
  4. Payroll
  5. Sales Tax
  6. Collecting W-9s from vendors
  7. Provide cash flow reporting
  8. Assist with budget creation
  9. Quarterly tax coordination with CPA
  10. Receipt Management
  11. Act as a liaison between you and your CPA

Bookkeeping is essential in the overall health of your business. Bookkeeping services ensure that you have the information needed to make decisions about your business. Your books are maintained properly to avoid mistakes and missed deadlines. Proper bookkeeping will help you understand your cash flow. Financial reports will be ready for your CPA.  

In summary, a bookkeeper will save you time and money while reducing stress on business owners. The success of your business depends on high quality bookkeeping.

Sick Leave 2022

If you have employees, this is IMPORTANT to your business. PLEASE READ THIS and remember not to kill the messenger!  If you don’t have any employees, your work is done for the moment.  Sit back and enjoy your day.

New Colorado mandates now REQUIRE that all employers provide sick-leave to every single employee.  

Here is the summary of how this will work. Please note, this is a summary. For full details, see links below:

Effective January 1, 2022, all Colorado employers will be required to offer paid sick leave to all employees (full-time and part-time)…Employees will accrue 1 hour of sick leave for every 30 hours worked. Unused sick leave during a calendar year must be allowed to roll over to the next year.

Obviously, this is a significant change. While it is highly impactful to the bottom line for small businesses, it is wonderful that employees will receive the ability to call in sick. As a business owner myself, I understand the impact. I certainly want my employees to receive fair compensation and to be treated well. At the same time, I am always looking at my bottom line. The cost to small businesses must be carefully considered and must now be a part of your business budget. This new legislation makes me extremely happy and a little sick to my stomach all at the same time. I took some Pepto Bismol, splashed some cold water on my face and am moving on to follow the law.

Incline Business Essentials is NOT an HR firm, we are bookkeepers. That being said, we want to inform you of this new requirement and identify how we can help. We are providing you with a quick overview of the new law.  For additional information, it is your responsibility as an employer to adhere to current HR laws.  

For additional information, see links:

Or contact the Colorado Department of Labor for specific questions.

Need Help Tracking Accrual of Sick Leave?

But wait….all is not lost!  Here’s how we can help!  It is important that you are tracking the accrual of sick leave (1 hour of sick leave per 30 hours worked). We can handle this piece for you. If you would like our help, please contact our administrator, Tisha Summerhays at Tisha will be orchestrating this operation within our company but your account manager will handle the tracking process.  

Setting up this tracking service will be billed as follows:

Gusto Payroll Users

At a flat rate of $200 onboarding and $50 per month for up to 5 employees, $5 per employee above 5. If your employees have difficulties with logins or requesting sick leave, we will bill hourly for assistance.

QBO Payroll Users

At a flat rate of $300 onboarding and $50 per month for up to 5 employees, $5 per employee above 5. If your employees have difficulties with logins or requesting sick leave, we will bill hourly for assistance.

You should update your employee handbook to reflect this new Colorado policy. Don’t have a handbook? You MUST take care of this to protect yourself and your employees. Your business and you personally are vulnerable if you are operating without a handbook. It leaves you open for potential lawsuits and/or fines. While we cannot write a handbook for you, we can facilitate this process through the use of payroll HR experts. Let Tisha know if you are interested. Pricing for this will be on a case by case basis.

Please know that Incline will make this change as seamless as possible. That being said, you will need to be involved. As a business owner, I understand it is HARD to put time and effort into these types of requirements. But here we are. So let’s hold up our heads, square our shoulders and get ready for the work. And know that we will be there to help and support you through these challenges.

If you have any questions, feel free to give us a call at 720-900-1301 or contact us below.

Real Time Bookeeping

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Bookkeeping has historically been completed as an after the fact necessity that is required by your CPA.  Small business owners are busy and overwhelmed with the day to day operations and bookkeeping becomes an afterthought.  By completing your books quarterly or even worse, annually, you are not able to use the information to help you run your business. Do you want to make more money? Do you want to work less and sleep more? Do you want to think about selling your business for a profit? Do you want to provide an excellent environment for your employees?

The power of Real Time bookkeeping means that businesses owners sleep at night.  You will have the tools to increase cash flow.  You will be able to focus time and energy where it counts: on your business, your clients, and in harmonizing your business and personal life.

What is Real Time Bookkeeping?  Real Time Bookkeeping is the act of completing the books within 36-72 business hours of actual events.  Real Time Bookkeeping means that ALL financial transactions and data are recorded including accounts receivable, accounts payable, all banking and credit card transactions, payroll, tax payments, etc.  

Do you need to increase sales?  Do you need to increase your inventory?  Is now a good time to purchase a new piece of equipment?  Do you need to cut costs?  Should you hire a new employee?  Is now a good time to add benefits to your payroll packages?  Real time books will provide you with the power to make effective decisions about all arenas of your business.

When these transactions are up to date, you can: 

  1. See your true Profit and Loss 
  2. Determine cash flow projections
  3. Create meaningful budgets
  4. Make real time corrections to pricing 
  5. Lower bookkeeping costs by catching nuances fast
  6. Stay current and relevant with market trends

All of these items will increase your cash flow and help you feel empowered.  Real Time bookkeeping puts your business in a better resale position.  Real Time bookkeeping will save you time and money and will allow you to effectively scale your business.  Financial security is only available if you understand the information gleaned from Real Time Bookkeeping.  

Afraid of the cost?  We understand.  It’s scary to invest.  But the return will outweigh the cost.  Your bottom line will improve and you will have peace of mind.  Consider the value.  Consider moving to Real Time bookkeeping.

Payroll Onboarding

Do you need to hire an employee? Here are the absolute basics.

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First, you must be set up for payroll. Your company must have an EIN, a Wage Withholding Account and a Unemployment Account at the very least. This will vary from state to state.

When you have these pieces set up and are ready to hire, you must collect: W-4, I-9, Acceptable Identification. Depending on your state/local requirements, you may also need to collect emergency contacts and report the new hire to your state.

Questions? Give us a call. We can help with the entire process.

This is a guideline only, please know that requirements are constantly being revised.

Bookkeeper vs. CPA

What is the difference between a bookkeeper and a CPA?  What does a bookkeeper do? What does a CPA do? Does my business need both?  Are you confused about these roles? You’re not the only one! Let me help you clarify.

First off, you need both.  Your bookkeeper is the pitcher.  The player with her hands on every play.  The CPA is the coach, guiding you based on the information provided by the pitcher.  It is best for you and your business if you find a bookkeeper and CPA who are able to work together to be sure everything is covered!

A bookkeeper records the numbers: actual financial activity happening within your business. A bookkeeper is responsible for your day to day business transactions: 

  1. Tracking your business expenses and income
  2. Reconciling your bank accounts, credit card accounts and loans
  3. Tracking your payables/bills
  4. Tracking your receivables and sending out regular statements to your customers
  5. Prepare regular business reporting to business owner(s)

These are the basics.  The above tasks should be completed on a regular basis (weekly or monthly depending on your business nature and volume).

Some business may need additional services. We will call these the “fuzzy” tasks.  This is where most businesses experience confusion because these services can be completed by the bookkeeper OR the CPA.  As a business owner, it is important that you identify who will be completing these tasks on your behalf. The CPA may assume the bookkeeper is completing these tasks.  Conversely, the bookkeeper may assume that the CPA is completing these tasks. Ultimately, you are responsible.  

Manage payroll including

  • Running regular payroll to pay business owner and/or employees
  • Complete required payroll deposits as dictated by IRS, State, and local jurisdictions.
  • Complete required Quarterly reports including 941, State Quarterly, Quarterly UI Reports, and any local reporting
  • Enter payroll into the bookkeeping system
  • This may also include tracking benefits if applicable

File sales tax reports and arrange for payment: Quarterly or Monthly as dictated by jurisdiction

File periodic report (annually in Colorado)

While a bookkeeper is responsible for recording the actual numbers, the CPA makes decisions about these numbers based on tax law.  The CPA should advise you about estimated quarterly taxes. The CPA will create your tax return and file your income taxes.  Some CPAs will help with the “fuzzy” tasks, some will not. Your CPA should be licensed and certified. Your CPA will provide additional, in depth analysis of your business.

Your business will operate most effectively if all the players and coaches have open communication. When the bookkeeper and the CPA can work together and are in touch with one another, you and your business will reap the rewards.

Best Practices for Invoicing

sending invoice

You can hire us to set-up and manage this process of invoicing and receivables. This will keep you from having to chase down payments and allow you to focus on what you do best – servicing your customer.

If you use a robust software system like QuickBooks Online, invoicing can be integrated and streamlined as a simple system within your business.

In our experience, there are some simple processes that make cash flow management easiest:

  1. Enter the complete contact info for your prospect immediately into your software, including full name, company name, email address and phone number.
  2. Send an estimate within an hour of your meeting or discussion for your proposed services.
  3. Convert the estimate to an invoice once accepted and send immediately with a professional, kind note.
  4. When possible, require payment for services before you begin project. If not possible due to your industry, request half-down and the rest upon completion.
  5. Accept all forms of payment.
  6. Review your receivables list weekly for cash-flow projections.
  7. Use the system messaging/notification function to remind clients of over-due payments.
  8. Use alternate professional methods to reach out as reminders, such as sending an email sharing valuable resources or making a quick phone call to check in and catch up professionally.

Invoicing and collecting receivables should be an integral and fluid system for your business. Let us help you remove the headache and angst of invoicing and collections, which will allow you to maintain a professional posture and long-term relationship with your clients. 

Bookkeeping Basics For Business Owners

bookkeeping basics

You hire us to manage your books, invoices, receivables, payables, and store necessary paperwork.

But as a business owner, it’s best to have a big picture overview of what is most important for tracking your spending and income. 

Here is what is important to know:

  • Pick a software system like QuickBooks Online that you and your team can access online and commit to it.
  • Link all of your business accounts, including credit cards to the software
  • Based on the structure of your business, choose appropriate categories to allocate all expenses and automate these designations
  • Keep your business and personal expenses separate
  • Look at your dashboard weekly and monthly to get a big picture overview of your financials
  • If you have employees or are set-up as an S-Corp, run payroll and taxes monthly
  • Set a quarterly review with your board, bookkeeper, accountant or CPA to make sure you are on track with taxes for the year.

The success of your business is dependent upon understanding and managing your finances.  Bookkeeping will help you analyze and make informed decisions about the direction and growth of your  business. We will help you make sense of your finances so that you can focus your time in developing your craft.

Subcontractor Compliance Paperwork

If your business hires individuals or small companies, you are most likely required to issue 1099s to these individuals or entities.

Collect W9s

You should have a W-9 on file for each of these entities. If you have not collected W9s, now is the time!  

Any individual or any unincorporated business that you pay $600 or more in a year will need to have a 1099 issued BY YOUR BUSINESS. If you hire a cleaner to clean your office, this is a subcontractor. If you hire a helper to assist with a project or event, this is a subcontractor. If you hire someone to mow your lawn, this is a subcontractor.

Issue 1099s

You are obligated to find out if this subcontractor is incorporated or not. If the subcontractor is not incorporated, you must report the total that you paid the subcontractor to the IRS by issuing 1099s.  So how does this work?

When you hire an individual or company, you should collect a W9 before issuing a payment. The W9 is a form that the subcontractor completes with his/her legal name, mailing address, and tax ID number. The W9 will also let you know if the business is incorporated. These incorporated businesses do not need 1099s issued, they are the exception. You need to have this information in order to complete the 1099s.  

I know, I know….you have hired subcontractors and you now realize that you have not collected these forms. I’m not suggesting that this is ok, but let’s be real. Many of you simply have not followed the “proper” procedure. I get it.  

But if you haven’t collected W9s by now, you need to get busy! The deadline for issuing 1099s is January 31 of each year. It will be here again before you know it.  You can find the W9 here.

For detailed information about subcontractors and IRS regulations, go to the IRS website here.

Hire Us To Help

Don’t have time to call all of these entities and collect the completed forms? Call us at ! We will take care of it for you!  

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