FAQs
Your business is your future. Whether you’re in your first year of choosing a fresh start, let’s take time to set a strong foundation.
What does a bookkeeper do?
We are not your local back pocket mobster accountant.
Do you offer remote work?
Yes
Do you do taxes?
No – oh hell no! We have business partners that we can refer you to.
Do you help with tax preparation?
Yes, we can help prepare financial reports you can give to your tax preparer for use in preparing your income tax returns.
Do you prepare financial statements?
We prepare unaudited “for management purposes only” financial reports, mainly consisting of a Balance Sheet, Profit and Loss, Budgets, Aging reports.
Do you offer in person work?
Yes, in Connecticut, south western Massachusetts and central Florida (Orlando and surrounding areas)
Do you offer payroll services?
We offer payroll services only to our full service bookkeeping clients.
Do you have a secure method of sharing sensitive information?
Yes, we set up a Google Drive folder for all of our clients.
How do I get started?
Contact us to schedule a discovery session!
What is bookkeeping?
Bookkeeping is the process of recording and organizing financial transactions such as sales, purchases, receipts, and payments. It ensures accurate records for taxes, compliance, and decision-making.
How is bookkeeping different from accounting?
Bookkeeping focuses on recording transactions and maintaining ledgers.
Accounting goes further by analyzing, interpreting, and summarizing financial data to guide business decisions.
Accounting goes further by analyzing, interpreting, and summarizing financial data to guide business decisions.
What are the basic accounting principles I should know?
- GAAP (Generally Accepted Accounting Principles): Standard rules for financial reporting.
- Consistency: Use the same methods over time.
- Accrual vs. Cash Basis: Decide whether to record income/expenses when they occur or when cash changes hands.
Why is monthly bookkeeping important?
- Keeps financial data up-to-date.
- Helps catch errors early.
- Prepares you for audits and supports budgeting/forecasting.
How often should I reconcile accounts?
- Monthly reconciliation is recommended. Compare your bank, credit card, and loan balances with your accounting software to ensure accuracy.
- If your cash flow is extremely active, then we recommend weekly or bi-weekly reconciliations, in addition to your monthly reconciliations.
Do I need bookkeeping software?
- Not mandatory, but tools like QuickBooks, Xero, or Wave simplify tracking, reporting, and compliance. They reduce manual errors and save time.
- Our firm uses QuickBooks, but we are not opposed to learning new software tools.
What’s the difference between cash basis and accrual basis bookkeeping?
- Cash basis: Record income/expenses when money changes hands.
- Accrual basis: Record when transactions occur, regardless of payment timing. Accrual gives a more accurate picture of financial health.
What records should I keep?
- Invoices, receipts, payroll records, bank statements, loan documents, and tax filings.
- Digital copies are acceptable but must be organized and accessible.
How long should I keep financial records?
In general, business operations, bank statements and other financial records should be maintained for a minimum of 7 years. This is for tax purposes. Requirements vary by jurisdiction. In the event of an IRS audit, the agency can request much more if they believe there is suspicion of fraud or misreporting.
How long should I keep payroll records?
Payroll records should be maintained for a minimum of 3 years. In the event of an IRS audit, the agency can request much more if they believe there is suspicion of fraud or misreporting.
Should I hire a bookkeeper or do it myself?
DIY works for very small businesses, but hiring a professional ensures compliance, saves time, and reduces costly mistakes