FAQs

“Life isn’t about waiting for the storm to pass; Its about learning to dance in the rain.” by Vivian Green

 

Q. Do I have to buy QuickBooks software?

A. Not necessarily! I can host the Quickbooks data file for your company at my office. I back up the company data frequently. I can track all aspects of your business bookkeeping, and each month provide you with the financial reports you need to know how your business is doing. If you prefer to buy the software or have employee’s in your office to access the file, then I would recommend buying the software. Another option is the Cloud Accounting QuickBooks Online software. This can make it easier to access from anywhere and for your Accountant, Bookkeeper and staff.

Q. Do you come to my place of business?

A. I’m flexible in making my clients feel comfortable with either a visit to your location, or use of modern day technology. If you are tech savvy, then we can use a few electronic data sharing techniques. For those business owners, I officer off-site bookkeeping services. Prefer standard mail, that is OK! Or I can come to your office, collect your documents then work on them at my office. 


Q. What kind of software do you support?

A. I prefer QuickBooks Desktop versions, but the cloud accounting and online option works better for some business owners. It certainly gives some ease to sharing data between the business owner, accountant & the bookkeeper. I can assist you in exporting your data files from a desktop version to the online software. I’m also looking to use Xero, another online cloud based accounting software. 


Q. What accounts do you reconcile?

A. It is important to reconcile the following balance sheet accounts: 

All cash accounts, bank PayPal, cash & Credit Cards

  • All accounts receivable and billings
  • Inventory and fixed assets
  • Accounts payable aging
  • Payroll liabilities
  • Lines of Credit and notes payable
  • Refundable deposits
  • Equity and distribution accounts

When each of the accounts on your balance sheet is fully reconciled, then you are on your way to accurate financial reports. Reconciling your business checking account each month is especially crucial and will help:

  • Identify lost checks and deposits
  • prevent overdraft charges from occurring
  • Ensure Transaction amounts are posted correctly by your bank
  • Detect and prevent embezzlement of funds from within your company, uncover any unauthorized wire transfers and enable you to alert your financial institution.

Q. What are Accounts Receivable and Accounts Payable? 

A. Accounts Receivable refers to customer accounts and the funds that are owed or paid to a company for the products and/or services that were provided to that client. When a bookkeeper works on your Accounts Receivables A/R, it involves entering customer information into QuickBooks, preparing invoices, sending them to clients, receiving payments, entering payments into QuickBooks and following up with customers with overdue accounts. Accounts Payable is the term used for vendor accounts and the funds that are due to be paid by the company. Bookkeeping functions for managing the Accounts Payable A/P including entering vendor information into QuickBooks, logging purchase orders, receiving bills/invoices and entering them into the system, preparing checks to pay those bills and following up with vendors to ensure proper balances are reflected after returns or refunds and requested. 


Q. What is an Income Statement?

A. An Income Statement also known as a Profit and Loss Statement focuses on earnings. It measures the financial performance of your company for any given period of time by tallying the difference between revenues generated through product and service sales and the costs associated with providing those products and services. The Income Statement identifies either a net profit or a loss for that period. Revenues – Expenses = Profits.  


Q. Why do I need a Balance Sheet?

A. A Balance Sheet gives you a snapshot of your business’ financial condition at a specific moment in time Assets = Liabilities + Equity. It incorporates information about all the assets and liabilities and identifies resulting equity held by your company and helps you to:  

  • Quickly get a handle on the financial strength and capabilities of your business
  • Identify and analyze trends, particularly in the area of receivables and payables
  • Determine if your business is in a position to expand
  • Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses
  • Determine if you need to take immediate steps to bolster cash reserves
  • Determine if your business has been slowing down payables to forestall an inevitable cash shortage

The Balance Sheet also tells potential lenders; who owns your business, how lean and mean your organization is running and the liquidity of your business.