Types of bookkeeping services
Every profession has its terminology. Here is a list of bookkeeping services that I offer with some extra description.
Catch up: entering business transactions that are a month or more behind to your bookkeeping software. This would include reconciliations of all business bank and credit card accounts (i.e. making sure that the transactions in the books match what the bank and credit card statements show. This is particularly important to do every month, as it helps you catch fraudulent activity in your financial accounts. And it is a form of quality control. You can delete things that got duplicated in the books, and add things that got missed.
Clean up: fixing transactions that have been entered incorrectly to the bookkeeping software. This often includes a complete revamping of the Chart of Accounts (COA). Tailoring the COA to your particular business will provide you with much more useful information. E.G. if you have multiple income streams, it is a good idea to change the COA from having the single default income account: "Sales income". Instead, you would make an account for each income stream. For a property investor, that might include, "Income - Rent", "Income - Flips", and "Income - Wholesale. Each one would become a separate line on the P&L statement (Income statement).
Catch up and clean up often need to be done at the same time.
Monthly bookkeeping = I keep your books properly posted and up to date, provide you with monthly financial reports, and discuss with you what these reports are revealing about your business to help you make better decisions as the business owner. All for a fixed monthly price, and a clear contract that specifies what is needed from each of us to work well together. This frees you as the business owner from the additional task of bookkeeping after a long day/week/month of running and growing your business.
Set up: Some businesses are too small to warrant a bookkeeper. The owner could easily handle it themselves -- if they were sure how to do it! In set up, I create a Quickbooks Online (QBO) account for you, develop a chart of accounts tailored to your business, provide an hour’s worth of training to show you how to post your business transactions, and give you a printed cheat sheet manual to refer to in case you forget something (this is very useful for tasks that only happen once a month/year/quarter).
Quarterly Reviews: Owners of small businesses may feel more secure having someone to double-check their data entry every 3 months to correct anything that got off-track before tax time rolls around. It also helps to have someone run off the quarterly financial reports and talk a little about what the reports reveal about your business. It nips errors in the bud and guides you to greater profitability in your business!
It adds a layer of security to have someone double-check your work so tax time doesn't catch you unprepared. After double-checking your books, I give you a list of things that need fixing, run quarterly reports and provide a one-hour video discussion. It nips errors in the bud and guides you to greater profitability in your business!