FAQs
We know that financial-services jargon can be overwhelming at times. Our goal is to help you feel capable and empowered, so we’re happy to provide answers to some of the most commonly asked questions about bookkeeping and accounting.
(Be sure to check out some handy resources, too.)
Who do you work with?
We’re ready to support all industries, and we especially enjoy working with small- to medium-size companies.
If you’re a passionate, collaborative business owner, we’d love to hear from you!
Do I need bookkeeping, or accounting?
All businesses benefit from accounting support, and bookkeeping falls within the category of accounting. Both services can make a huge difference to a business owner.
That said, there are some key differences between bookkeeping and accounting:
Bookkeeping is a specific type of accounting practice. Bookkeepers are responsible for accurately recording and organizing business transactions and other financial data.
Accounting covers the full spectrum of financial-account services, from routine data entry to complex financial analysis. Accountants excel at reviewing, analyzing, and interpreting financial data.
That’s not all. There are many other accounting roles that are well-equipped to help you navigate complicated situations that demand additional expertise.
For example, accounting consulting and tax accounting are popular specializations:
Accounting consulting is about establishing and executing systems. Accounting consultants can develop and streamline your processes for maximum efficiency and accuracy. They’re typically available year-round to provide assistance and give advice.
Tax accounting focuses on preparing and filing tax returns. Tax accountants expect to receive completed books for tax prep, so they rarely assist with process development or troubleshooting. They’re typically available only once a year, at tax time.
When’s the best time to start doing bookkeeping?
As soon as possible! Bookkeeping should be done as soon as there are financial transactions to record. Establishing good financial habits from the get-go can help you eliminate unnecessary stress, both at tax time and throughout the year.
There are several benefits to getting an early start with bookkeeping:
Minimizes the learning curve by giving you time to learn the software, at your own pace, while there are still relatively few transactions to record.
Prevents overwhelming backlogs, which eliminates the need for expensive, time-consuming work to clean up incomplete data or catch up on unrecorded transactions.
Helps you feel calm and confident when potential investors or lenders request your financial reporting, since you’ll know it’s ready to pull at a moment’s notice – and contains trustworthy data.
Can I do my own bookkeeping?
Definitely! In fact, most business owners engage in some part of the bookkeeping process and like feeling knowledgeable about the state of their finances.
However, their degree of engagement usually depends on the volume and complexity of data, and we work together with our clients to determine the best possible distribution of tasks and responsibilities.
Will you do my taxes?
No, but we’ll make sure that your file is all ready for tax time!
Have an existing tax preparer? We’ll be happy to work with them, to streamline the process.
Don’t have a tax accountant yet? We can help you find and evaluate a qualified provider.
How do you PROTECT MY DATA?
We maintain industry-standard best practices for safeguarding our clients’ sensitive, confidential financial information.
Here are just a few of the tools we use to keep your data protected:
QuickBooks: client-granted, permissioned access via dedicated Accountant login
Dropbox: secure file storage
Hightail: secure file transfer
Additional technical information on security layers is available upon request.
Not seeing your question? Please send us a message so we can try to get you an answer!