Frequently asked bookkeeping questions that will help offer some clarity on what it is bookkeepers do and why you may or may not need one.
WHAT IS BOOKKEEPING?
Bookkeeping is the process of accurately recording your businesses financial transactions.
WHY IS BOOKKEEPING IMPORTANT?
Bookkeeping is an essential part of running a business. As a business owner, you must keep accurate financial reports for both your own use and to comply with the IRS regulations. Having a proper bookkeeping system in place with allow you to have that plus manage your cash-flow (how money is moving in/out of your company), analyze the financial outcomes of your business activities, and have your books ready come tax season.
SHOULD I HIRE A BOOKKEEPER?
Running a business is extremely time consuming on its own and and adding something such as bookkeeping to your to-do list can be an extra stressor that takes you away from the work you do well. Outsourcing your books to a dedicated bookkeeper will give you the knowledge and comfort that your books are:
1) Accurately maintained books throughout the year
2) Organized in a way that helps you understand how your business is doing and where/how you can grow
3) Books are ready come tax season
4) Saves you time so you can focus on your business
5) Saves you money on costly mistakes.
DO YOU FILE TAXES?
I do not provide any tax service but I get all your books in order so it is all set to send to your CPA. I will work with your tax preparer in case they have any questions or need anything modified with the books.
WHAT IS THE DIFFERENCE BETWEEN A BOOKKEEPER AND A CPA?
A bookkeeper assists with your business organization, budgets, provides financial statements, processes payroll, manages your accounts receivable and payable, categorizes your transactions, and prepares for tax filing. It is very much about the day-to-day of your company’s finances. A CPA focuses on tax advising, annual tax filing, and investments. The CPA is your representative to the IRS.
WHAT ACCOUNTING SOFTWARE DO YOU USE?
As a QuickBooks Pro Advisor, I prefer to use QuickBooks Online to handle all my virtual clients bookkeeping needs. Don’t have an account? No problem! I offer discounted subscription rates. I also have experience with Xero, Wave, and Financial Edge NXT.
Have more questions? Email me at info@lotteleussink.com and I can answer any other questions you may have!
xx Lotte
Hey, I'm Lotte, and welcome to my blog, She Means Business.
I'm an expert bookkeeper and business/operations manager who loves supporting female entrepreneurs so they get their time back. Over the past 5 years I've supported dozens of women through my services, and I hope this blog can help you. Browse & Enjoy!
