FAQs

ZF Bookkeeping Frequently Asked Questions section

General Bookkeeping

  • While an accountant plays a crucial role in your business's financial health, they often focus on higher-level tasks like tax planning, financial analysis, and strategic advice.
    Bookkeepers, on the other hand, handle the day-to-day financial operations, such as recording transactions, categorizing expenses, and reconciling accounts.

    By having a bookkeeper, you can free up your accountant's time to focus on more complex tasks, ultimately leading to more efficient financial management and better decision-making for your business. Additionally, bookkeeping services are more cost-effective than hiring an accountant to handle these tasks.

  • While you can technically handle your own bookkeeping, it's often more beneficial to entrust this task to a professional.

    By outsourcing bookkeeping, you free up valuable time to focus on your core business activities. A professional bookkeeper can ensure accuracy, efficiency, and compliance with tax regulations. Moreover, they can provide valuable financial insights that can help you make informed decisions and drive your business forward.

    Ultimately, if you're not a financial expert, it's wise to delegate these responsibilities to someone who is"

  • Bookkeeping is the process of recording, classifying, and summarizing financial transactions for a business. It involves tracking income, expenses, assets, and liabilities. Think of it as keeping a detailed financial diary for your business.

    Accurate bookkeeping is essential for informed decision-making, tax compliance, and financial health. By tracking your profitability, identifying areas for improvement, and planning for future growth, you can make strategic decisions that drive your business forward.

    Additionally, well-maintained books can help you stay compliant with tax laws, avoid penalties, and maintain investor confidence. By monitoring your cash flow, you can identify potential problems early on and take steps to improve your financial health.

  • You didn't start a business to be a bookkeeper. If you find yourself spending time on bookkeeping tasks instead of working on growing your business, it's time to consider hiring a professional. 

    By delegating your bookkeeping tasks to a qualified professional, you can reduce stress, save time, and make informed decisions. A bookkeeper can help you stay organized, accurate, and compliant with tax regulations. 

    Remember, investing in a bookkeeper is an investment in your business's future.

  • Remote bookkeeping is a service where a bookkeeper handles your financial records virtually, often using cloud-based accounting software. This eliminates the need for in-person meetings, making it a convenient and cost-effective solution for businesses of all sizes.

    By choosing remote bookkeeping, you can access your financial information from anywhere, at any time, and collaborate with your bookkeeper seamlessly.

New clients

  • The first step to achieving financial clarity is to contact us for a free consultation. We'll assess your specific needs and tailor a bookkeeping plan to fit your business.

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  • During our initial consultation, we'll discuss your current financial situation and business goals. To better understand your specific needs, we'll also request access to your recent transactions for the past three months.

    After our meeting, we'll review your financial information and provide you with a customized bookkeeping plan tailored to your unique business requirements.

  • No need to worry about cleaning up your books. We'll diagnose any issues, fix any errors, and establish a solid foundation for your financial records.

  • We primarily utilize QuickBooks Online for our bookkeeping services. It's a user-friendly, cloud-based software that allows you to access your financial information anytime, anywhere, from your phone or computer.

    QuickBooks Online is known for its ease of use, making it a great choice for small businesses. As your business grows, QuickBooks Online can grow with you, offering additional features and tools. It also integrates seamlessly with other tools you might be using, streamlining your workflow.

  • Absolutely! We can seamlessly migrate your financial data to QuickBooks Online, ensuring a smooth transition to our cloud-based solution.

Services

  • We offer a range of bookkeeping services, including monthly bookkeeping, financial cleanup, and QuickBooks Online setup and training. We’ll tailor our services to your specific needs, whether you’re a starting business owner or a growing business.

  • Our monthly bookkeeping services are designed to keep your financial records accurate and up-to-date. We’ll handle your day-to-day financial tasks, including categorizing transactions, reconciling accounts, and generating financial reports.

    Whether you’re a starting entrepreneur or a seasoned business owner, we can tailor our services to your specific needs. For businesses with lower transaction volumes, we offer quarterly bookkeeping services.

  • Our financial cleanup services can help you get your financial records back on track. Whether you've neglected your bookkeeping, switched accounting software, or simply need to clean up past errors, we can help.

    We'll accurately categorize transactions, reconcile accounts, and fix any discrepancies to ensure your financial records are accurate and up-to-date, and ready for tax season.

  • Our QuickBooks Online setup and training service is perfect for small businesses that want to take control of their finances without breaking the bank. We'll set up your QuickBooks Online account, customize it to your specific needs, and provide training on how to use the software. This service is ideal for businesses with simple, low volume, and repetitive transactions.

    We'll also schedule a follow-up call couple of months later to ensure you're comfortable with the software and your financial records are accurate.

  • Our monthly bookkeeping and cleanup services include the preparation of essential financial reports such as Profit and Loss Statements (aka P&L and Income Statements), Balance Sheets, and Cash Flow Statements. These reports provide valuable insights into your business's financial health.

    Additionally, we can provide customized reports to help you make informed decisions.

  • No, we don't offer traditional in-office bookkeeping, our remote bookkeeping services allow us to work with clients from anywhere. This means you can benefit from our expertise without the need for in-office meetings.

    Our virtual bookkeeping approach ensures efficient and cost-effective bookkeeping solutions.

    We're available to schedule virtual meetings or phone calls to address any questions or concerns you may have, ensuring a seamless and personalized experience.

Tax Season

  • No, we can’t replace your CPA. However, our bookkeeping services complement their work.

    While your CPA handles complex tax strategies and filing, we focus on the day-to-day financial operations, ensuring your records are accurate and ready for tax time.

  • No, we don’t file taxes.

    We provide the necessary financial information to your tax professional, such as your CPA, to ensure a smooth and accurate tax filing process.

  • Our comprehensive bookkeeping services ensure your financial records are accurate and up-to-date, simplifying your tax preparation process and reducing stress.

    By maintaining organized records, you'll be well-prepared for tax season, minimizing the risk of errors and delays.

  • Our bookkeeping services can help you identify and claim legitimate tax deductions, maximizing your tax savings.

    By maintaining detailed records of your business expenses, we can help you take advantage of deductions, and work with your tax professional to ensure that your taxes are filed accurately and efficiently.

  • By maintaining accurate and up-to-date financial records, our bookkeeping services can help you avoid costly tax penalties.

    We'll ensure that all your income and expenses are properly categorized and documented, making it easier for your tax professional to file your taxes accurately and on time.

  • While we hope you never have to deal with an IRS audit, our meticulous record-keeping practices can help you confidently face one if it occurs.

    By providing clear, organized, and accurate financial documents, we can help you minimize the risk of audit issues and expedite the audit process..

Accounting/Bookkeeping Terms

  • A General Ledger is like a company's financial diary. It records all the financial transactions, big or small, in a systematic way.

    This record helps businesses keep track of their income, expenses, and overall financial health.

  • Think of a Chart of Accounts as a detailed table of contents for your financial records.

    It categorizes all your financial transactions into specific accounts, like "Cash," "Accounts Receivable," or "Office Supplies." This organization makes it easier to understand your financial situation.

  • A Profit and Loss Statement, or P&L for short, is like a snapshot of your business's financial performance over a specific period.

    It shows you how much money your business has earned (revenue) and how much it has spent (expenses). By comparing these figures, you can see if your business is profitable or not.

  • A Cash Flow Statement is like a bank account statement for your business. It shows how much money is flowing in and out of your business.

    This helps you understand your cash position and make informed decisions about your finances.

  • A Balance Sheet is a snapshot of your business's financial health at a specific point in time. It shows what your business owns (assets), what it owes (liabilities), and what's left over for the owners (equity).

    It's like a financial snapshot of your business.

  • The accounting equation is a fundamental principle in accounting that shows the relationship between a company's assets, liabilities, and   equity. It can be expressed as follows:
    Assets = Liabilities + Equity

    Assets: These are resources owned by a business that have value and can be used to generate future income. Examples include cash, inventory, equipment, and real estate.

    Liabilities: These are debts or obligations owed by a business to creditors. Examples include loans, accounts payable, and accrued expenses.

    Equity: This represents the owner's claim on the assets of a business. It's calculated by subtracting liabilities from assets
    (Assets - Liabilities = Equity). Equity can be increased through investments or retained earnings.

    The accounting equation ensures that a company's financial statements are balanced. For example, if a business takes out a loan to purchase equipment, its assets (equipment) will increase, and its liabilities (loan) will also increase. This keeps the equation balanced.

    Understanding the accounting equation is essential for small businesses, as it helps them to monitor their financial health and make informed decisions. By keeping track of their assets, liabilities, and equity, small business owners can identify potential problems, such as excessive debt or insufficient cash flow.

  • Bank and credit card reconciliation is like balancing your personal checkbook.
    It's the process of comparing your financial records to your bank and credit card statements to ensure they match.

    This helps identify any errors, fraud, or discrepancies, keeping your financial records accurate.

  • Accounts Payable (AP) is like a list of bills you owe.

    It represents the money your business owes to suppliers or vendors for goods or services received, but haven't yet paid for.

  • Accounts Receivable (AR) is like a list of money owed to your business.

    It represents the money your customers owe you for goods or services they've received but haven't yet paid for.

  • Accrual Accounting: This method records revenue and expenses when they are earned or incurred, regardless of when the cash is received or paid.

    For example, if you bill a client in January but don't receive payment until February, you would record the revenue in January under accrual accounting.

    Cash Basis Accounting: This method records revenue and expenses only when cash is received or paid.

    So, in the above example, you would record the revenue in February when you receive the payment.