NL Bookkeeper LLC
Frequently Asked Questions
"What exactly is bookkeeping?"
Bookkeeping is the process of recording, classifying, and organizing financial transactions for a business. It involves recording transactions in a systematic way, such as in a ledger or accounting software, and reconciling bank statements.
"What are some common bookkeeping tasks?"
Bookkeeping tasks generally include:
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Recording financial transactions, such as sales, expenses, and payments
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Classifying transactions into appropriate categories, such as revenue, expenses, and assets
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Reconciling bank statements
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Generating financial reports, such as profit and loss statements and balance sheets
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Filing tax returns and other legal documents
"Why is Bookkeeping important?"
Bookkeeping is an essential part of running a business, as it provides a clear record of financial transactions and helps to ensure that a business is financially healthy. It also helps business owners make informed decisions about the financial health of their business, as well as meet their legal and tax obligations.
"Can I do my own Bookkeeping?"
It is possible for business owners to do their own bookkeeping, however, it is important to have a good understanding of bookkeeping principles and to be organized and detail-oriented. Business owners who are not comfortable with bookkeeping or who have a more complex business may want to consider hiring a bookkeeper or accountant to handle their financial records.
"How can a bookkeeper help my business?"
A bookkeeping service can help a business in a number of ways, including:
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Saving time and effort with financial record keeping.
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Ensuring accuracy by working with a professional bookkeeper.
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Getting valuable insight from financial reports.
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Meeting legal obligations such as filing tax returns and complying with financial reporting.
"What bookkeeping method do you use?"
I use accrual accounting (also called the double-entry system) which records revenues and expenses when they are earned or incurred, regardless of when the cash is exchanged, providing a more accurate financial picture.
"What are some common bookkeeping financial reports?"
Some common financial reports used in bookkeeping include:
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Profit and loss statement: This report shows the income and expenses of a business over a specific period of time, such as a month or a year. It is used to determine the profitability of a business.
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Balance sheet: This report shows the assets, liabilities, and equity of a business at a specific point in time. It is used to assess the financial position of a business.
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Cash flow statement: This report shows the inflows and outflows of cash for a business over a specific period of time. It is used to understand the liquidity of a business.
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Statement of changes in equity: This report shows the changes in the equity of a business over a specific period of time. It is used to understand the changes in the ownership of a business.
"What is the onboarding process for new bookkeeping clients?"
The onboarding process for bookkeeping clients is the process of getting new clients set up and ready to work with a bookkeeping service. It typically involves gathering information about the client's business and financial records, setting up a system for organizing and storing financial documents, and establishing a schedule for bookkeeping tasks.
"What information do I need to get started?"
To start the bookkeeping process, you will typically need to provide the following information:
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Details about your business, such as the business name, address, and industry
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Financial documents, such as bank statements, invoices, and receipts
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Tax documents, such as tax returns and tax identification numbers
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Any relevant legal documents, such as contracts or agreements
"How many hours will I need to hire you for?"
The amount of time the bookkeeping process takes will depend on if you already have bookkeeping setup, need bookkeeping cleanup, the size and complexity of your business, as well as the amount of financial documentation you have. During the free financial consultation, we will go over the needs of your specific business. I will then be able to give you an estimate of how many hours of bookkeeping is needed. Click "Get Started" below to book your free consultation!