Create Your Own Records (Payroll, Invoices, Debts)
Give Access to Financial Accounts or Bank Statements
Answer Bookkeeper’s Questions about scope of your business
Prodive with necessary info to understand your business process
Give previous tax returns
Bookkeeping is one of the oldest professions in the world! They offer support and guidance for any type of business.
Bookkeeping is recording and assigning financial transactions, journal entries, posting to ledgers and so much more. Bookkeeping is determing what systems to use, software to use, and essentially what expenses need to go. Bookkeepers are the tires to a car or the key to the door.
It’s that time! For some you may have filed an extension for your 2020 taxes but water break is over, it’s time to get back in the game and tackle these 2021 taxes! If you didn’t take that route and looking to file net year… this is for you too! If you haven’t already… HowContinue reading “Stay Ready so You Don’t Have to Get Ready”
There are numerous legal ways to deduct your business expenses during for Halloween season. You can deduct Halloween candy, decorations, anything that you can make BUSINESS-RELATED. How to Write-Off Candy The simple trick a lot of businesses use is the branding method. They take something that they want to use for their business and putContinue reading “Halloween Tax Deductions”
The process of doing your own or giving someone else the responsibility is tedious and can be time consuming. Going At it Yourself Learn the Basics for Your Industry Choose an efficient accounting software SEPERATE YOUR PERSONAL AND BUSINESS Create Your Own Records (Payroll, Invoices, Debts) Outsourcing? Give Access to Financial Accounts or Bank StatementsContinue reading “How does Bookkeeping work?”
By enlisting a Bookkeeper or even an Accountant, not only are you helping to grow their business but it’s their job to help you grow yours! Alot of people believe they need an Accountant as soon as they start a business and in some cases that’s true, but not having anyone is worse. Based on the few clients I endured while I was a W2 wage earner, 37% had to pay penalties to the IRS as of the beginning of 2021.
No One’s Saying You Can’t …
By outsourcing, it means you, the business owner is at a level where it’s no longer smart to do your own books! Not every business is scalable but, every business has the potential to grow. Of course, you can do it yourself as well!
Behind every good business is a great entrepreneur, behind them is a financial expert.
Bookkeeping hels a business stay in full control of it’s finances, overhead and taxes. Bookkeepers free your time while Accountants do far more than letting you focus on other things. Poor bookkeeping or none at all, is the leading reason business fail. It’ not exciting but it’s necessary.
Do you dread doing your books? At Assist And Align you won’t have to stress nor worry when it comes tax time. By maintaining balanced financials throughout the year your financial journey will be smooth and simple in the end!
You need a Bookkeeper that has a clear understanding on how to help small businesses. What makes one a bad Bookkeeper? It’s fairly simple…
Things to Watch Out For…
Takes a While to Respond Back
There’s nothing more frustrating that someone not getting back to you in a timely manner. It should not take your Bookkeeper more than 3 business days to get back to you! There are some exceptions like, vacation, emergencies, things of that nature, but if your Bookkeeper is not meeting your needs in a good time, they may be doing the bare minimum, something unethical, etc. It’s okay to demand transaprency, especially when it comes to your money!
Don’t Know the Ins and Outs of Bookkeeping
It’s imperative that you don’t choose the cheapest person you can find, becuase you may “get what you pay for”. Finding an experience Bookkeeper may be harder than one knows. Bookkeepers are not “one size fits all”, just as not all businesses are the same. Getting a professional who is an expert in your field is your best option. Make sure they’re certified, educated or experienced.
Don’t Give Access to See Your Books
This is a major red flag! As the business owner, you should have access to the software and your books regardless of if you pay the subscription. It’s not safe to work with a Bookkeeper that gatekeepers or is so secretive of their work. It makes transparency impossible!
Not asking the Right Questions
There should be a system in place to ask necessary questions. Question along the lines of identifying the problem or challenge , type of business, more detail about business, number of accounts and types, and expectations…
Slow to Produce Financial Statements
Your Bookkeeper should provide access to financial statements for the prior month, no later than the middle of the next month. This is important, because it can become annoying to ask your Bookkeeper for these statements when you need them and they take a while to produce them. You Bookkeeper is doing their job when you know when to expect these documents without having to ask.
Don’t Provide Suggestions
Businesses should provide better business practices willingly, because happy client makes a happy bookkeeper. Its their job to consult with you on new policies that may affect your business as well as ways to save your money.
Accounts Aren’t Balanced, Organized and Updated
By this point, the is a deal breaker. If your account aren’t ready for the next cycle by the middle of the next month, you’re better off keeping the fee you pay your Bookkeeper and paying your kid to do it for you. It’s never okay to be behind on your books! Your business can’t grow or scale if you don;t have clean books; you’d have to wait to get funding, wait to find out your sustainability and you won’t be able to plan for the future.
This is the overall goal of Bookkeeping! This information should be stored in a server from start to finish, or to when the business started making money.
Deadlines = Efficiency! When Bookkeepers are inable to work in certain paramaters, it shows that maybe they’re not in the right profession. Missing deadlines can cause late fees, penalties and a loss of business. This will slow the business down tremedously.
Bookkeeping is recording financial transactions or information that pertains to business operation. It entails creating a filing system that categorizes income to the appropriate accounts as well as differentiating types of expenses.
Businesses and individuals need bookkeeping! People do this without even realizing it’s bookkeeping. Examples are when someone creates a budget or system that tracks money going in and out of the account, so they can be better prepared during tax season.
In most cases a business has a bookkeeper to stay in compliance, manage cash flow, perform multiple clerical duties and tell how the business is performing. By tracking the money that comes in and out, it leaves little room for error and fraud. Bookkeeping tells the business owner and individuals how much they will owe or get back from taxes. Not only that, bookkeeping is the proof behind the numbers.
Bookkeeping also entails knowing some tax laws; what’s tax deductible, what are the limitations, and usually paying payroll taxes. Bookkeepers prepare invoices, financial statements, pay bills on behalf of the business, reconcile bank and loan amounts to provide up-to-date balances.
Bookkeeping is a subcategory of Accounting. Bookkeeping as apposed to Accounting doesn’t deal with auditing . There is a common misconception that bookkeepers don’t do taxes, and some do, some don’t. According to the law, anyone over the age of 18 can prepare tax returns. Taxes are complex and require extensive research, knowledge and understanding.
Two Types of Bookkeeping
One entry is made for each transaction into a journal or log.
Only one account is affected; the account balance will increase. or decrease.
It’s easy to maintain with little requirements; favorable among small businesses.
Two entries are made; a debit and a credit.
Two or more accounts are affected and the entry must balance.
These are usually called Journal Entries.
This is a great system to avoid error.
Bookkeeping is necessary in every business! It’s the recording of a business’ financial transactions from accounts having anything to do with business. Bookkeeping and Accounting work closely together to ensure your business is in compliance and ready for tax season. With software like QuickBooks, single entry bookkeeping makes managing your books easier!