FAQ
1
Why do I need a bookkeeper when I already have an Accountant/Tax Preparer/CPA?
The most simple question you need to ask yourself - does your accountant do the daily bookkeeping for you by recording every transaction throughout the year and send you monthly statements for clarity? If the answer is yes, then you don't need a separate bookkeeper. If you don't, then you need a bookkeeper.
2
Can't I just do my own bookkeeping?
YES! Absolutely you can do your own bookkeeping. It allows you to analyze every transaction that comes in to your business and goes out of your business. But do you want to do your own bookkeeping? Do you have the knowledge of accounting principles? Do you know how to use QuickBooks? If the answer is no to any of the questions, it might be time to look into outsourcing your bookkeeping.
3
I am a Real Estate Investor and use Appfolio (or other PM software), do I need an accounting software?
Even though we love a good property management system to get you through the day to day activities, you may still want to invest in an accounting software, like QuickBooks. Usually, a property management software does not support a balance sheet, which is the number 1 report you need to send your tax preparer at the end of the year.
4
As a business owner I am worried about someone having access to my finances. How do I protect my assets when hiring a bookkeeper?
This is a valid concern and our firm only work with view-only bank access. This means that our team can only download bank statements from your bank and not make payments to ourselves or anybody else. If you choose to hire us for Bill Pay services, then we would create an approval process with you. We are here to monitor your finances and making sure your business is not being taken advantage of.
5
I am about to start my business, but don't have any money to hire a bookkeeper. I need help, do you offer consultation?
YES! Nobody should be alone at starting a business. There's a lot that goes into starting a business. What legal entity should you choose? Which state should you register? We offer consultation calls for new businesses looking to open their business. Even though we cannot provide legal or tax advise, we can give direction on systems to implement based on the line of business you are in.
6
What is a bookkeeping Clean Up?
A Clean Up is when you as a business owner have not done your bookkeeping for an X amount of time or it's done incorrectly, and for a variety of reasons need someone to clean the books. When we receive a clean up job we would through uncategorized transactions, unreconciled accounts, undeposited funds, determine Sales Tax Nexus, reconcile payroll and prepare reports for example to the tax preparer or for the loan officer.
7
I want to start paying myself, but not sure how to do that?
Congratulations! Your business is profitable and you are finally able to pay yourself! If you are a single member LLC or sole proprietor, then you can just make a bank transfer from your business account to personal account and call it an Owner's Draw.
If you are an S or C Corporation, you should pay yourself a salary through payroll. We recommend Gusto as a payroll provider.
8
What is Sales Tax Nexus and do I need to be worried about it?
Every time you sell a product or service to someone else, you need to check with the state the product was shipped to or the location the service was provided at if sales tax collection and payments are needed. This becomes difficult if the products and services are sold from one state to another, such as shipped products. If a business has Nexus, it means they need to start collecting and paying sales tax to a certain sales tax district.
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If it's confusing, you are not alone and there are great options available to ensure compliance. Sales tax is not to be overlooked, but we can help. Schedule a free consultation call and we would be happy to take a look if your business has Nexus.
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