Q. Do I need a bookkeeper?
A. Maybe. It depends on the size of your business, the amount of time you have to do the books, and your expertise and interest in doing your own bookkeeping.
Please read the blog on this website.
Q. What services does a bookkeeper provide?
A. Depending on the type and size of your business, the bookkeeper will do some or perhaps all of these:
- Record sales and expenses on a monthly basis
- Provide reports such as an Income Statement and Balance Sheet periodically (monthly, quarterly or yearly)
- Categorize expenses, such as mileage, office supplies, utilities, etc.
- Do the payroll or oversee a third party payroll service
- Record and keep track of inventory
- Stay on top of your bank accounts and reconcile them regularly
- File quarterly state taxes
- Help you prepare to file your federal taxes
- Advise and guide you on your day-to-day or special bookkeeping needs
Q. Do I need to purchase bookkeeping software?
A. If you don’t have software now and you hire a bookkeeper, they may advise you to use it in order to save time and make your business more effective.
If you already have bookkeeping software, your bookkeeper can make sure it’s being used correctly and maximize its potential for you.
If you and your bookkeeper agree that software isn’t necessary at this time, the bookkeeping can be done in a simpler format that you both agree on.
Q. If I hired a bookkeeper, how would that work?
A. A professional bookkeeper would want to meet with you in person, by telephone or by video conference in order to learn about the business, your current method of doing the books, and why you need to hire a bookkeeper. They will probably prepare a formal contract stating terms for their services and costs. If you agree to the proposal, you sign the contract and get started.
If the business has been operating for a while, your new bookkeeper will need to assess and possibly correct the bookkeeping done in the past. This is called a clean-up. They may also need to get the books up to date if they aren’t already. Then, they will begin providing bookkeeping services to keep the books up to date.
Q. What do bookkeepers charge?
A. It depends on what the business needs and whether your company will need to have the books cleaned up, or caught up. You can let your prospective bookkeeper know what you need and want done, and how much of the work you’re able to do yourself. There are many factors, but once the clean-up and catch up (if needed) are complete, you will probably pay monthly for the work, either hourly or at a set charge by the month.
Q. What should I expect from a bookkeeper?
A. The job of a bookkeeper is to record money that your company receives, pays or owes. In addition, they can prepare reports which will help you understand how the business is doing. As important, your bookkeeper can provide you with peace of mind that the books are in good hands. Knowing that will enable you to run your business with greater ease, less stress and fewer headaches.