Bookkeeping involves systematically recording all financial transactions of a business, individual, or other entity. It involves entering all transactions, like sales, purchases, and expenses, into a system or software that helps keep track of these transactions. These transactions are recorded in different accounts, such as assets, liabilities, equity, revenue, and expenses. These accounts form the basis of the company's financial statements. A key part of bookkeeping is balancing the books, ensuring that the sum of debits equals the sum of credits for each account. This is achieved by posting transactions to the general ledger and reconciling the accounts periodically.
Our bookkeeping and cleanup service will cover:
- Reconciling Bank Statements: They ensure that the company's internal financial records match bank statements..
- Preparing Trial Balance: Some bookkeepers may also prepare financial statements regularly throughout the year, not just at the end of the financial period.
The year-end trial balance is a list of all accounts and their balances at the end of the fiscal year, after all the transactions for that year have been recorded. The purpose of the trial balance is to ensure that the total of all debits equals the total of all credits, confirming that all entries were made correctly in double-entry bookkeeping. If there is a discrepancy, it indicates an error in the bookkeeping that needs to be investigated and corrected. The trial balance is a preliminary bookkeeping check before preparing the financial statements.
What’s the difference between month-to-month vs. year-end?
Month-to-Month Bookkeeping:
- Frequency: Conducted regularly monthly.
- Scope: Focuses on day-to-day financial transactions and activities within a specific month. This includes recording income and expenses, reconciling bank statements, managing accounts payable and receivable, and generating monthly financial statements.
- Decision Support: Provides timely information for short-term decision-making, allowing businesses to monitor cash flow, identify trends, and address any issues promptly.
- Detail: Involves detailed, granular recording of transactions to ensure accurate and up-to-date financial records throughout the year.
Year-End Bookkeeping:
- Frequency: Culminates in a comprehensive assessment at the end of the fiscal or calendar year.
- Scope: Involves a more in-depth analysis and reconciliation of accounts for the entire year. Year-end bookkeeping includes closing financial accounts, conducting a thorough review of financial statements, and preparing for audits or tax filings.
- Decision Support: Provides a holistic view of the business's financial performance over the entire year. It supports strategic planning, helps in tax preparation, and assists in evaluating the business's overall financial health.
- Detail: While still detailed, year-end bookkeeping often involves more extensive reconciliation and may include adjustments or accruals to ensure that financial statements accurately represent the business's financial position at year-end.
What if I need to migrate my books?
If you find yourself utilizing a product other than QuickBooks Online (QBO), we're thrilled to extend our support by offering complimentary assistance migrating your financial records. Our primary goal is to streamline this transition for you, ensuring the process is as straightforward and hassle-free as possible. We understand the importance of a seamless migration, and our team is dedicated to making the switch to QBO efficient and user-friendly for your convenience. Don't hesitate to reach out if you have any questions or want to take advantage of our migration assistance – we're here to help make your financial management transition a smooth and uncomplicated experience.
Difference between Write-Up Services and Bookkeeping
Write-up services and bookkeeping are related financial processes but differ in scope, detail level, and the tasks they encompass. Here's a breakdown of the critical differences between write-up services and bookkeeping:
Scope of Services:
- Write-Up Services: Typically involve compiling and summarizing financial information from various source documents. This can include bank statements, invoices, receipts, and other financial records. Write-up services focus on organizing and presenting financial data coherently.
- Bookkeeping: Encompasses a broader set of tasks, including recording daily financial transactions, categorizing expenses, managing accounts payable and receivable, reconciling bank statements, and generating financial reports. Bookkeeping is more comprehensive and involves daily recording and organization of financial activities.
Frequency of Tasks:
- Write-Up Services: Often performed periodically, such as monthly or quarterly, to compile financial data for a specific time frame. This service may be more project-based.
- Bookkeeping: Involves ongoing, regular tasks that are performed daily or weekly to keep the financial records up to date. Bookkeeping is a continuous process to ensure the accuracy and timeliness of financial information.
Level of Detail:
- Write-Up Services: Create a summarized overview of financial transactions and results. The emphasis is on presenting key information rather than providing a detailed record of every transaction.
- Bookkeeping: Involves a more detailed and granular recording of financial transactions. This includes capturing individual expenses, income, and other financial activities to create a comprehensive and detailed financial record.
Financial Reporting:
- Write-Up Services: Primarily geared towards creating financial statements and reports based on the compiled data. These reports provide an overview of the financial health of a business for a specific period.
- Bookkeeping: Involves the generation of various financial reports, such as profit and loss statements, balance sheets, and cash flow statements. These reports offer a detailed breakdown of financial performance and position.
Compliance and Tax Preparation:
- Write-Up Services: This may be part of the groundwork for tax preparation but may not involve the detailed record-keeping required for complex tax compliance.
- Bookkeeping: Plays a crucial role in tax preparation as it involves maintaining organized and detailed financial records, making it easier to comply with tax regulations and prepare accurate tax returns.
What software is Taxfyle Bookkeeping done through?
Taxfyle Bookkeeping is conducted using the widely recognized and efficient QuickBooks Online (QBO) software. This strategic choice ensures a consistent and high-quality product for our clients. QuickBooks Online is a cloud-based accounting software that provides a robust platform for managing financial data, tracking transactions, and performing various bookkeeping tasks.
By utilizing QuickBooks Online, our Tax Professionals can maintain a standardized approach to bookkeeping, adhering to best practices and leveraging the rich features offered by the platform. QBO's cloud-based nature allows for real-time collaboration, enabling our professionals to work seamlessly on your financial data regardless of location. This flexibility is particularly advantageous, as it allows our team to efficiently access and update information while providing timely and accurate insights into your financial status.
The integration with QuickBooks Online also means that our Tax Professionals can leverage the platform's capabilities to streamline bookkeeping processes, track expenses, generate financial reports, and ensure compliance with accounting standards. The user-friendly interface of QBO makes it easier for both our team and clients to navigate and interact with financial data, promoting a smoother and more transparent bookkeeping experience.
Moreover, QuickBooks Online's security features provide a safe and protected environment for handling sensitive financial information. This commitment to security aligns with our dedication to maintaining the confidentiality and integrity of our client's data.
By choosing QuickBooks Online for our bookkeeping services, Taxfyle ensures consistency and efficiency and a modern and collaborative approach to financial management that benefits our team and our valued clients.
How do I grant a Pro access to Quickbooks Online?
To streamline the process and facilitate seamless collaboration, you must grant our team access to your QuickBooks Online (QBO) account. Here's a step-by-step guide on how to do this:
Log In to Your QuickBooks Online Account:
- Access your QuickBooks Online account using your credentials.
Navigate to "Manage Access":
- Once logged in, navigate to the section for managing access. This is typically found in the settings or account management area.
Click on "Manage Access":
- Look for an option like "Manage Access" or a similar term within the QBO dashboard. Click on it to proceed.
Provide Access Email:
- In the designated field for granting access, enter the email address bookkeeping@taxfyle.com. This email address is the point of contact for our team.
Confirm Access:
- Confirm and save the changes to grant access to our team. This step is essential for the Tax Professional to access the necessary information and provide effective support.
By following these steps, you ensure a smooth and secure connection between your QBO account and our team at Taxfyle. This access allows the Tax Professional to work efficiently within the platform, addressing your bookkeeping needs and providing support for a seamless financial management experience. Contact our support team for assistance if you encounter any challenges or have further questions.
Can I work with a Pro I’ve used before?
We aim to provide consistency and a personalized experience by attaching the same Tax Professional to all your Taxfyle jobs. This approach ensures that the expert handling your tax-related matters is familiar with your unique financial situation and preferences, fostering a more tailored and efficient service. However, there might be instances where the initially assigned Tax Professional may not have the specific capabilities required for certain tasks, such as Bookkeeping, Consultation, or Tax Filing.
In such situations, our commitment to delivering high-quality service remains unwavering. To address potential gaps in expertise, we have a network of licensed Tax Professionals with diverse skill sets. Suppose your designated Pro needs to be equipped to handle a particular aspect of your financial needs. In that case, we will connect you with another Tax Professional with the necessary expertise. This ensures that you continue to receive the level of service and advice you expect, even when the job requires a specialized skill set.
Our primary goal is to offer a flexible and adaptive service that caters to the unique demands of your financial circumstances. By leveraging a network of skilled professionals, we can confidently navigate any challenges and provide comprehensive support across various aspects of tax-related tasks, guaranteeing that you receive the expert assistance you deserve throughout your Taxfyle experience.
