Frequently Asked Questions

What is the purpose and difference of bookkeeping and accounting?

The purpose for both is keeping track of your company's income and how it spends that money. Bookkeeping is the day-to-day record keeping such as managing the receiving and payment of bills, managing the sales and receiving of payment from customers, and payroll processing. Accounting is the next step after bookkeeping. It starts where bookkeeping left off: Reviewing the bookkeeping processing, completing bank reconciliation, credit card reconciliation, completing payroll tax returns, sales tax returns, property tax returns (571-L), and compiling the periodic financial reports that summarize all of the record-keeping data.business's organization, tax purposes and operations, along with target pricing and profit margins.

My records are a mess and I'm embarrassed for anyone to see the paper mounds let alone organize them. Where do I start?

Start by calling us. We can organize your records, set you up on Quickbooks Online and get your accounting up and running. Do not be ashamed of paperwork. We love paper!

Shouldn't my bookkeeper be local

With the technology available in the 21st Century, a bookkeeper can work from anywhere. We have the right software and other features in place to ensure the our clients get the highest quality service

What if I want to do the record-keeping myself?

Bookkeeping Essentials LLC sets up and trains clients on Quickbooks Online, allowing the owner/staff to maintain the accounting themselves in the software. We recommend that we "check-in" on your Quickbooks file to make sure things are being entered consistently and accurately so there are no surprises at year end.

What type of records do I need to keep? How long do I keep them for?

There is no short answer to this question. You should keep tax returns at least 3 years (That is the General Rule), but the answer depends on the type of document and the type of transactions you have been engaged in.
The IRS can go back 6 years if a return omits more than 25% of income. If fraud is proven, there is no limit.
If you own Real Estate, hold on to the records that establish the basis of the property. Retain the files until at least at least three years after you dispose of the property. Same goes for Sales of Securities (mutual funds, stocks and the like).
Businesses should keep payroll tax records for a minimum of 4 years after the due date for the employees to file their income tax returns. This means W-4’s forms, payroll returns and amounts and dates of tax deposits.
Businesses should keep copies of worker health coverage forms at least 3 years after the deadline for filing.
Records on costs of assets, depreciation, etc. should be retained for decades.