Frequently Asked Questions About Bookkeeping
Whether you run a small start-up or a large corporation, it’s essential that you keep your books in order. It will help maintain a steady cash flow, pay taxes on time, and optimize business performance. It could also be the difference between survival and turning a tidy profit. However, When it comes to bookkeeping, there are many questions clients have but often find it tricky to get all the answers they’re seeking. To ensure you have all your doubts cleared and arm you with the most accurate information available, ALL-PRO Bookkeeping & Consulting Ltd. has answered some of the most frequently asked questions about bookkeeping.
1. Aren’t bookkeeping solutions expensive?
Time is money! By hiring a certified professional bookkeeper, you are freeing up the valuable aspect of time, which allows you to focus on other parts of your business. Bookkeepers can work with you on the scope to fit within your budget.
You could also hire a freelance bookkeeper, which will be far less expensive than hiring an employee. Freelance bookkeepers are self-employed contractors, meaning they are responsible for all their costs and deductions. By hiring an employee to perform these tasks, it becomes the responsibility of the business owner to pay the employer a portion of statutory deductions.
2. How frequently should I consult a bookkeeper?
It depends on the nature of your business. Most clients get their bookkeeping done on a monthly or quarterly basis
3. What is the difference between a bookkeeper and an accountant?
Contrary to popular belief, accountants and bookkeepers perform distinctly different tasks for the businesses they serve.
Bookkeepers are responsible for the ongoing maintenance of their clients’ general ledgers.
A bookkeeper’s typical responsibilities consist of:
a. Compiling data daily
b. Categorizing expenses in the general ledger (GL)
c. Reviewing the general ledger for accuracy
d. Reconciling bank statements against the general ledger
e. Generating financial statements
Accountants use the accurate and up-to-date general ledger maintained by the bookkeeper to provide advisory services, such as:
a. Analyzing the company’s financial data
b. Preparing income tax returns
c. Providing tax planning advice
Therefore, the importance of using a first-rate bookkeeper is key to your business’ success.
4. What kind of services do bookkeepers provide?
Bookkeepers assist with bank reconciliations, accounts payable and receivable, expense reports, banking, payroll, and financial statements.
5. What other financial services do you provide?
As bookkeepers, we also provide:
a. Money-in or revenue reconciliation – Recording deposits, matching payments to accounts receivable, cash flow management
b. Expense management – Expense categorization, accounts payable, receipt, and mileage tracking
c. Bill payment – Online bill payment, document storage
d. Payroll services – Payroll software setup, reconciliation
e. Financial reporting - Producing and reviewing financial statements from GL (general ledger) (i.e., Income Statement And Balance Sheet)
6. What accounting software do you support?
We are experts in Quickbooks Online and Desktop, Xero Accounting Software, Wave Accounting, and Sage.
7. How do we send information to your office?
For convenience, there are several ways clients can submit information, including through our client portal, Dropbox, Office drop-off, Google Drive, and email.
8. How are your services billed? Flat fee or hourly?
For regular service clients, we bill a flat monthly fee that is agreed upon by both parties. On the other hand, project work gets billed at an hourly rate.
If you have any more questions about bookkeeping, get in touch with the experts at ALL-PRO Bookkeeping & Consulting Ltd. We are a leading bookkeeping firm in Calgary, Alberta, that customizes our services to suit our clients’ needs. We were established in 2006 by our founder and owner, Valerie Mellof. She has over twenty-five years of experience in bookkeeping, servicing entrepreneurs, and small to medium-sized business owners. We serve clients across Airdrie, Cochrane, Bearspaw, Bragg Creek, Calgary, Chestermere, Strathmore, De Winton, Okotoks, Black Diamond, and High River, AB.