Bookkeeping

What is bookkeeping and what do we do for you?

Many people know they need bookkeeping but not all know what exactly bookkeeping is. At the most basic, bookkeeping is categorizing and classifying financial transactions to derive pertinent information for tax filing, financial reporting and budgeting.

This may seem like an easy process but the nuance is in the details. Knowing what and how to properly record a transaction can be tricky and often requires detailed knowledge of accounting and IRS rules. Make a mistake and you could be costing your business money in missed deductions, IRS penalties, or misinformed decisions based on bad information.

Vector Bookkeeping prepares cash based tax ready books for our clients. We ensure that you have the most up-to-date and accurate information for your business. We bring peace of mind to our clients by preparing their books for tax filings, budgeting and financial reports.

Our sister firm Sohler Law sees it all the time… April 15th approaches and new clients reach out for taxes in a panic to file on time. Often these new clients have ignored their books for long periods of time, or even worse they have had a bad experience with someone they hired to do their books for them. In many of these cases the work must be turned down because the resources to clean up the mess are not available. Many tax firms do the same and those that do take the work charge a premium for the additional mess and workload. Vector Bookkeeping believes in maintaining your books throughout the year on regular intervals so when tax season approaches you are prepared and ready to file your taxes.

When was the last time you looked at your income statement? How about your balance sheet? Do you know where your money is going and where it is coming from? Financial reports are a powerful tool to know exactly what the levers of your business do and how they affect your business. How do you reduce your operating expenses? Who is your most profitable client, project or line of business? How old are the balances on your outstanding client bills?

These are all questions that can be answered with proper bookkeeping and financial reports. We get it, budgeting can be boring and tedious but knowing how much your current employees truly cost you so you can plan for a new hire to expand your business is critical in making the right decisions for your business. Accurate and timely bookkeeping is an absolute must to build these budgets and put your resources to the most profitable and best use. Without it, at best you are making an educated guess, at worse, you may be rolling the dice that things will just work out. With proper bookkeeping you will have the piece of mind that your decisions are informed, strategic and the right move for your business.

• You have more time to concentrate on the growth of your business.
• You can say goodbye to any delays in obtaining financial reports at tax time.
• There will be a dedicated bookkeeper handling your finances with a team of experts in the background if needed.
• You have online access to your accounts by means of a mobile app.
• Any financial reports will be ready when required and they will be accurate.
• You can practically operate your business “paper-free.”
• Having a professional handle your books will save time and give you a certain amount of peace of mind.
• Working with a service where all the transactions are stored securely online, and access to your financial information can be achieved from anywhere at any time.

• Create a chart of accounts: This is structured to show the different accounts needed for the business to operate. As all transactions flow through the bank account, classifications will be done to highlight spending and income trends. This can be a bit time-consuming trying to maintain the accounts on a daily basis, which is where your bookkeeper comes in to help with the mundane tasks.
• Reorganize the books: If your books consist of paper receipts and notes about transactions, then it becomes difficult to sort through it all and produce reports. A financial professional will step in, restructure your current record-keeping, and get you back on track.
• Reconciling Accounts: Even if you have been conscientious about recording transactions either manually or by using a PC, mistakes can still be made. Reconciling the main accounts on a regular basis is vital to ensure accuracy. Reconciling the bank account transactions to those shown on the bank statement or online will identify possible discrepancies and give you a chance to rectify any mistakes.
• Prepare a trial balance: A trial balance will be prepared and any adjustments for accruals and prepayments will be done, ending with an adjusted trial balance, which is the basis for final accounts, Balance Sheet, and Profit & Loss Statement.
• Financial Reporting: One of the many benefits of using financial services is that you have instant access to reports showing the financial health of your business. This aspect is of particular benefit when tax season is looming. All the information from your business dealings is collated into various reports to make finalizing your tax returns as stress-free as possible.
• Easy Access to Information: You should be provided with all the necessary software to view your financial reports, update critical information, or just “chat” with your bookkeeper.