Common Questions
Straight answers to the questions business owners ask us about bookkeeping, accounting, taxes, and how we work. If you don't find what you're looking for, feel free to contact us.
What does a bookkeeper do for a small business?
A bookkeeper records your transactions, reconciles your accounts, and produces financial reports so you know where your money is going. They keep your books accurate and current, which makes tax time smoother and business decisions clearer.
Read answerWhat's the difference between a bookkeeper and an accountant?
Bookkeepers handle the day-to-day recording of financial transactions. Accountants use that information to prepare tax returns, analyze your finances, and advise on business decisions. Most small businesses need both functions working together.
Read answerDo I need both a bookkeeper and a CPA?
In most cases, yes. A bookkeeper keeps your financial records accurate throughout the year while a CPA handles tax returns, compliance, and higher-level advisory work. They serve different functions, and trying to skip one usually creates problems.
Read answerHow often should my books be updated?
At minimum, your books should be updated monthly. Monthly reconciliation aligns with bank statement cycles, keeps errors from compounding, and gives you financial information that's current enough to make real business decisions.
Read answerWhat's the difference between cash basis and accrual accounting?
Cash basis records income when you receive payment and expenses when you pay them. Accrual records income when earned and expenses when incurred, regardless of when money actually changes hands.
Read answerWhat financial reports should I be reviewing every month?
At minimum, review your profit and loss statement, balance sheet, and cash flow statement every month. Add accounts receivable aging and a budget-to-actual comparison and you'll have a clear picture of where your business stands.
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