1. What is the difference between bookkeeping and accounting?
It can be difficult to understand, but I’m here to help! There are three words that separate bookkeeping from accounting: judgment, analysis, and evaluation. These three things enable company decision makers to understand their financial information and use it to plan for the future.
◦ Bookkeeping is the systematic daily or weekly process of recording and summarizing the transactions of a company. Businesses use bookkeeping because it provides organized and accurate information about their financial transactions. Bookkeeping focuses on the details.
◦ Accounting is the big picture. It takes information obtained through careful bookkeeping and uses it to analyze the financial health of a company. Accounting is therefore crucial to helping management make important financial decisions.
Bookkeepers meticulously record information in order for accountants to interpret and work with this data. A bookkeeper is the “how”; an accountant is the “why.” A bookkeeper makes the lines; an accountant reads between them.
A bookkeeper is therefore a crucial element in your business planning process!
2. Will you replace my current Tax Accountant?
No! Tax Accountants are an important part of your business team, and an important partner for It’s All Adding Up. Whether you have a CPA (Certified Public Accountant) or EA (Enrolled Agent), we will all work together as a team to make sure your interests are best looked after.
◦ As your bookkeeper, most of my time will be spent gathering information, organizing, classifying, and reconciling your records in order to create annual reports. By utilizing my services your bookkeeping is performed at market value so your Accountant can focus on providing more profitable value-added services.
◦ Once each calendar year is over and I have received and entered all the yearly transactions into QuickBooks, I will forward the final reports to your Accountant. I am available for any questions that you or your Accountant may have.
3. Who do you offer your services to?
I provide services to individuals, sole proprietors who file a Schedule C and small businesses.
4. Where and how often do we need to meet?
Where we meet depends on your preferences and needs. All of my clients are different and I’m here to make your life easier, not more difficult. I can work with you:
◦ from my home office
◦ within your work space
◦ or a combination of these
How often we meet also depends on your needs and preferences. When we first start working together, we will meet more often so I can get a good, accurate feel of your business and books. Some examples of how often I work with my clients:
◦ Some clients require me to work in their work space on a weekly basis
◦ A few clients need their data updated every 2 weeks from my home office
◦ Others ask that I come into their work space on a monthly basis
◦ Some I work from my home office each quarter
However, we work together, I would enter all of your transactions into the accounting program and reconcile your account(s). I would provide you with reports at any time, so you can review how your business is doing at that given point. Anytime you have a question, I am a phone call or email away.
Of course, it’s important to me to develop a relationship and get to know you, so you will see my face from time to time! And I am always an easy phone call away.
5. How long will all of this take?
The sooner I can begin reviewing your documents and office setup, the stronger the outcome. I will need time to get to know your lists of vendors and customers, reorganize your receipts and filing system, clean up the current year’s transactions, and reconcile your accounts.
We are going to get to know each other very well. I will ask lots of questions that might feel inquisitive, critiquing or meddling. This is not my intention to make you feel uncomfortable, I’m here to help! It’s important that you answer honestly and share everything so I’m able to support you and your business in the best and more appropriate way. The quicker we can get to this relationship of trust and confidentiality, the faster we can reconcile your accounts and get things into place.
So even if your receipts, statements and accounts from the last 3 years are haphazardly thrown in a basket, the sooner we start, the stronger the outcome. And if Tax Day comes and we aren’t ready, we always have the option to file an extension.
6. How do I submit my documents?
Once we decide to work together, we’ll work out an arrangement that feels comfortable to you and is not disruptive of your time or your business. My goal is to make your life easier, not to add to your To Do List!
◦ You could have your documents sent directly to me.
◦ We could make arrangements to exchange them in person.
No matter how I receive your documents, I will always return your original documents to you once they are posted.
7. Ok, I think I’m ready. But what will you ask during our Complimentary Intro Session?
As I’ve mentioned in several of the questions above, we will get to know each other very well. During our Complimentary Intro Session, I will ask many of the same questions that are mentioned above, what your goals are, if you are struggling in any areas, what the state of your current books are and how far back you want or need to go.