Once you have come up with the money to start your parking lot striping / sealcoating business you are going to need a commercial account to put the funds in.
Your account will be the main source of data for your bookkeeping system. In the beginning all deposits will be from start-up capital. This amount will be classified as paid in capital or loans to the company on your balance sheet. All subsequent deposits will be from striping or sealcoating jobs completed. This amount will be classified as sales or revenue on your income statement. Checks written will be the expenses of the company and your draws. This will be recorded as expenses or owners draws on the income statement. The amount left over plus owners draws will be the companies profit which will flow to your personal tax return. As you can see, the entries in your checkbook are important.
I would recommend a three check per page book with a section for writing what the check was for, who it was to and the amount. Like the one below.
Since you will use your checkbook as data for your accounting and taxes, you need to have sufficient detail. Relying on memory is not a good idea. As you write, you can also code the stub with a category so that you can quickly go through the checkbook and categorize expenses for tax purposes. A large checkbook makes this easier. My checkbook is 9.75 x 13.75 inches and has 7 rings to hold the checks. It is rugged and holds other paperwork as well.
The account you open should be a commercial account. Sometimes banks will try to get you to open an interest bearing account but these accounts often have limitations as to how many checks you can write. Whichever account you choose, make sure the fees are fair and that there are no constraints that may adversely affect you.
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Steven Cole (Economics, MBA – University of West Florida, Business & Innovation – Stanford University) 30 years experience in the parking lot striping business. Expert in reflective visibility solutions.