1. I’m an LLC. How do I pay myself?

You do not need to be set up as a W-2 employee. Simply take money out of the company when needed. It will be recorded as an owner draw.

2. What is the difference between a bookkeeper and an accountant?

Bookkeepers record transactions, reconcile bank accounts, and prepare financial statements. Accountants analyze financial data, prepare income tax returns, and provide tax planning services

3. Shouldn’t my bookkeeper be local?

Small businesses no longer need to work with a local bookkeeper. The internet and cloud technology makes it easy for bookkeepers to securely access their clients’ books anytime, anywhere. Business owners can now select a bookkeeper who truly understands their industry and operations, instead of hiring the local, community bookkeeper by default.

4. How do you charge?

I use subscription-based pricing. This means you will pay the same amount each month. It is predictable and will not fluctuate based on phone conversations or emails.

5. How will you add value to my business?

In addition to the value added through the actual bookkeeping tasks, we will actually give you back 8 to 15 hours per week that could be used drumming up and selling $1,000’s of dollars of business. This costs my clients, on average, between $150 and $250 per month.

6. Can you recommend a tax professional for my business?

Yes, I have worked hard to prepare a network of great tax professionals. Some are local and some are remote. Please just ask for a reference and I’d be happy to work with you.

7. Do you perform clean-up work?

Yes, I often accept 5 to 10 clean up projects each year. Please ask about this service.

8. How much involvement do you require from me?

As much or as little as you would like to be involved.

9. What is the difference between Cash accounting and Accrual accounting?

With Cash accounting, you record the transaction once the money leaves or enters your business (most common for small businesses). With Accrual accounting, you record the transaction when the purchase or the sale is made (and cash does not change hands until a future date).

10. Is bookkeeping expensive?

It is if you hire an in-house employee or are doing the books yourself as the business owner. On average, an in-house bookkeeper for a small business could spend up to 10 hours per week on the same tasks that we would be providing for you using considerably less time. At the end of the month, this could cost you 10 times what it should.

This cost even increases if the business owners are handling their own bookkeeping. Your time is way more valuable focusing on the core competencies of the business. For example, if you are a plumber and you spend 30 hours per month on bookkeeping. You have just lost 30 hours of billable revenue opportunity at $125/hour or $3,750 that month. This is only the monthly loss in revenue. This is $45,000 over the course of 1 business year.