FAQs
What is the difference between a Bookkeeper and an Accountant?
A Bookkeeper handles the daily transactions in a business, including writing checks, making deposits, invoicing, bank and credit card reconciliations, ect. The main function of a bookkeeper is to maintain accurate records.
An Accountant uses the transactions a bookkeeper manages to prepare your financial statements. From these statements, an accountant will analyze and review how your company is performing. This could include budget/forecast preparation and variance analysis.
Do you file taxes?
We can file state and local taxes. We do not file federal income tax returns. We will coordinate with your tax accountant for year-end filing. We can refer you to a trusted partner if you do not already have one.
What are all the financial statements and what do they mean?
Income Statement (P&L): Used to reflect your companies performance over a specific period of time. Typically a month/quarter/year.
Balance Sheet: Summarizes your companies assets, liabilities, and equity at a specific point in time.
Cash Flow Statement: Reflects the movement of your companies cash with operating activities, investing activities, and financing activities.
Statement of Stockholders Equity: Details the movement of your owners equity over a period of time.
Why should I have a budget/forecast prepared?
You see your goals on paper and it communicates them to your staff.
It helps you see if your goals are profitable or even realistic.
It will help you work harder to reach those goals.
Adapting to change will be less strenuous. If you loose a client unexpectedly, you'll be able to see how it will effect the rest of your business.
Decision making will be easier with a budget. Whether you need to hire a new employee or are curious about rebranding, you can ask your budget any question and it will show you if it's a practical decision or not.
Why do you prefer Xero over Quickbooks Online?
Both accounting systems work great and we realize that both offer unique needs for different companies. After researching both systems, we found that Xero was more user friendly, more affordable, offered unlimited users & more functions without an additional cost, had better overall reviews, and was beautiful to look at. We still work in quickbooks so don't rule us out if that's what you prefer. Xero is just what we generally recommend.