Educated Bookkeeping

Educated Bookkeeping Welcome to Educated Bookkeeping! We are professional virtual bookkeepers based out of McKinney, TX.
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We specialize in supporting small service based businesses so they can focus on their passion and optimize their business's financial foundation.

Recurring subscriptions are one of the easiest expenses to forget about. There are so many incredible tools out there to...
06/23/2026

Recurring subscriptions are one of the easiest expenses to forget about. There are so many incredible tools out there to try and experimenting with them can add up.
Take time each quarter to review your bank and credit card statements for automatic charges. You may find software, memberships, or other services that your business no longer uses.
While a single subscription may not seem expensive, several unused subscriptions can add up quickly over time and impact your cash flow. If it isn’t providing value to you or the business, it needs to go.
Reviewing your subscriptions regularly can help reduce unnecessary expenses and ensure your money is being spent where it provides the most value.
A few minutes of review today could save your business hundreds of dollars each year.

If you're required to file a 1099, it is not optional.The IRS requires businesses to file certain 1099 forms when they m...
06/18/2026

If you're required to file a 1099, it is not optional.

The IRS requires businesses to file certain 1099 forms when they make qualifying payments. Failing to file can result in penalties for both not filing the form or providing the recipient with a copy.

Common situations that require a 1099-NEC include paying $2,000 or more during the year to:
Independent contractors
Sole proprietors
Partnerships
Single-member LLCs (unless taxed as a corporation)
Attorneys (in many cases)

There are exceptions. For example, payments to most corporations generally do not require a 1099-NEC, although attorney payments often do.

Missing required 1099 filings can lead to penalties and extra headaches if your business is ever audited. The best practice is to collect a W-9 before making the first payment to a contractor. That way, you'll have the information you need when it's time to prepare 1099s.

Not sure if a vendor should receive a 1099? Check with your CPA or tax professional before the filing deadline.

One of the most common payroll headaches we see is waiting until the last minute to add a new employee to the payroll sy...
06/16/2026

One of the most common payroll headaches we see is waiting until the last minute to add a new employee to the payroll system.

Most payroll providers require new hire information to be entered and verified before the payroll processing deadline. Waiting too long can lead to delayed paychecks, missed tax filings, incorrect withholding, or even the employee being left off payroll entirely.

Before your new employee's first day, make sure you have:
✔️ A completed Form W-4
✔️ Form I-9 documentation
✔️ Direct deposit information (if applicable)
✔️ Their start date and pay rate
✔️ Any state-required new hire reporting information

Submitting employee information early gives your payroll provider time to verify everything and helps ensure your new team member g

Your Cost of Goods Sold (COGS) can tell you a lot about the health of your business.COGS includes the direct costs of pr...
06/11/2026

Your Cost of Goods Sold (COGS) can tell you a lot about the health of your business.
COGS includes the direct costs of providing your product or service, such as labor, materials, subcontractors, and other job-related expenses.

By reviewing your COGS regularly, you may notice:
• Labor costs are increasing
• Material costs are rising
• Some jobs are more profitable than others
• Your pricing may need to be adjusted

Many business owners focus only on sales, but sales do not tell the whole story. If your costs are increasing along with your sales, you may not be making as much money as you think.

Understanding your COGS can help you make better decisions about pricing, spending, and profitability.
Sales show how much work you are doing. COGS helps show how much money you are keeping.

Friendly reminder for business owners: Your second quarter estimated tax payment is due June 15.If you are self-employed...
06/09/2026

Friendly reminder for business owners: Your second quarter estimated tax payment is due June 15.

If you are self-employed, own a business, are a partner in a partnership, own an S-Corp, or receive income that doesn't have taxes withheld, you may need to make quarterly estimated tax payments.

Making these payments throughout the year can help you avoid penalties and prevent a large tax bill when it's time to file your tax return.

Not sure if you need to make an estimated payment or how much to pay? Contact your CPA or tax professional before the deadline.

Your books may not be able to tell you they need attention, but they will leave clues.Things like negative bank balances...
06/04/2026

Your books may not be able to tell you they need attention, but they will leave clues.
Things like negative bank balances, large undeposited funds balances, negative accounts receivable, and uncategorized transactions are often signs that something needs to be reviewed. While one issue by itself may not be a major problem, multiple red flags can indicate that your books are no longer providing an accurate picture of your business.
Reviewing your financial reports regularly can help you catch issues early, avoid costly cleanup work, and make better business decisions. If you're seeing any of these signs in your reports, it may be time to take a closer look at your bookkeeping processes.

Bookkeeping is one of those tasks that is easy to push to the bottom of the to-do list—until it becomes a bigger problem...
06/02/2026

Bookkeeping is one of those tasks that is easy to push to the bottom of the to-do list—until it becomes a bigger problem.

Set aside an hour today to tackle the bookkeeping tasks you've been putting off:

✅ Reconcile bank and credit card accounts
✅ Review your cash flow
✅ Follow up on outstanding invoices
✅ Review unpaid bills
✅ Categorize uncategorized transactions
✅ Upload missing receipts
✅ Review your Profit & Loss report
✅ Review your Balance Sheet
✅ Investigate unusual account balances
✅ Check loan and credit card balances

A little time spent on your books today can help you avoid mistakes, reduce stress, and make better business decisions tomorrow.

What bookkeeping task have you been putting off?

“Piercing the corporate veil” is a legal term that means a business owner can become personally responsible for the busi...
05/28/2026

“Piercing the corporate veil” is a legal term that means a business owner can become personally responsible for the business’s debts or legal problems.
Normally, an LLC or corporation helps protect the owner’s personal assets, like their home, car, and personal bank accounts. But if the business is not treated like a separate business, a court can remove that protection.
This can happen when business owners mix personal and business money, pay personal bills from the business account, keep poor records, or do not properly run the business. If that happens, the owner could become personally responsible for business debts or lawsuits.
This is one reason why keeping personal and business finances separate and maintaining accurate bookkeeping records is so important. If you are a business owner who doesn’t have good bookkeeping processes in place, give us a call and we can help.

Unanswered bookkeeping questions may not seem like a big deal at first, but they can quickly turn into bigger problems. ...
05/26/2026

Unanswered bookkeeping questions may not seem like a big deal at first, but they can quickly turn into bigger problems. The longer transactions go without clarification, the harder it becomes to remember details, find receipts, or record things correctly in your books.
Good communication and timely answers help keep your books accurate and up to date. Taking care of questions early can help prevent mistakes, missing information, and costly cleanup work later on. They also help your bookkeeper finalize year end reports well before the tax deadline.
Need help staying on top of your bookkeeping needs? Let's chat.

Starting a business comes with a long list of responsibilities, and bookkeeping is one area that should not be overlooke...
05/21/2026

Starting a business comes with a long list of responsibilities, and bookkeeping is one area that should not be overlooked.

Clean and organized books help you understand your numbers, manage cash flow, plan for taxes, and make better business decisions. Financial clarity is especially important when you are just getting started.

Your bookkeeping support should be more than just a friend of a friend who “knows some bookkeeping.” Whether you hire a professional or do it yourself, it’s important to have the right systems, training, and industry knowledge in place.

If outsourcing bookkeeping is not an option right now, make sure you get the proper training to help you start off on the right foot.

Still trying to figure out your bookkeeping plan? Give us a call.
We offer QuickBooks Online set-up, training, and ongoing monthly bookkeeping services to help business owners build a strong financial foundation.

Address

McKinney, TX
75071

Telephone

+18177983883

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