Frequently Asked Questions

1. When should I hire a bookkeeper?

A bookkeeper needs to be hired when you establish your business. That can be in the beginning or at the end of the year. For most small businesses they start out doing there own bookkeeping. When it becomes overwhelming or payroll is to be considered they hire a bookkeeper.

2. What is the difference between an accountant and a bookkeeper? Can you do both?

An accountant does taxes and bookkeeping. I do bookkeeping and can help with payroll. I can also provide help with Quickbooks

3. What Do I need to bring for you to do my payroll?

I would need your EIN number and your BIN number from the state. I would need your checking account routing and account number. As for the employees I would need your W4 form to set them up.

4. How can you help me with my taxes?

I can help with your taxes by organizing the data into a Profit & Loss and Balance Sheet. For the Profit & Loss I enter the expenses and income. For the Balance Sheet I set up your Assets and Liabilities.

I specialize taking on companies that have a business size of 1 to 6 employees. For instance and single owner do the day to day bookkeeping. They need a bookkeeper to organize the data by taking their bank and credit card statements and entering the data. Once entered then I reconcile the books. What they get is a Profit and Loss on a monthly, quarterly basis.

A company that has an owner and one employee does the day to day bookkeeping then they hire a bookkeeper to do the payroll and monthly reconciliations. I may set them up on a quarterly basis doing their bookkeeping monthly but billing them at the end of the quarter. What they get is an Profit and Loss analysis of the previous quarter compared to the current quarter.

A company that has six employees will hire a bookkeeper to do the payroll and daily bookkeeping. The daily bookkeeping may be writing checks and doing some invoicing. At the end of the month I would reconcile the books. They would get a Profit and Loss at the end of the month.

If you can incorporate that I specialize in small business 1 to 6 employees that may peak some interest.

5. What should we pay employees who work on a holiday?

Holiday pay is time and half through payroll services.

6. What is Form W-2?

The W-2 is the form that has the employees name, social security number, and wages for the year. It is used to file their income taxes. To file this, it can come as a challenge for some small businesses, be sure to contact Patricia for your small business accounting services.

7. What is Form I-9?

The I-9 is the formal form to identify your citizenship or immigration status. It is used for every employee that you hire.

8. What is Form W-4?

The W-4 is the form that lets the payroll service or bookkeeper the name, address, social security number and amount of exemptions an employee wants deducted from their paycheck.

9. What's the best way to run payroll?

There are several options to run payroll. It can be done through a service like ADP, or Paychex or by your bookkeeper. Let Patricia take this task off your hands and call for payroll services today!

10. Is direct deposit a good way to pay employees?

Direct deposit is a good way to pay employees for its convenience and automatic payment to their checking or savings account.

11. Am I allowed to pay employees in cash?

This method of payment is not recommended. It is better to produce a check for wages which can be tracked.

12. What is supplemental pay?

Supplemental pay are compensation paid to an employee in addition to regular wages like bonuses, commissions, sick leave, severance pay, overtime pay, awards and prizes, retroactive wage increases.

13. What is overtime?

An employee must be paid overtime for work over 40 hours in a workweek at 1.5 times their regular pay.

14. What is the difference between an exempt and nonexempt employee?

A non-exempt employee is entitled to overtime pay at 1.5 times their regular rate
A non-exempt employee could be paid a salary or hourly wage

A exempt employee is not entitled to overtime pay at 1.5 times their regular rate
Must be paid a salary, not an hourly wage
Must earn at least $455 per week

15. What kind of software do you use?

The software that I use is QuickBooks Accountant Desktop the most current. This software I product financial statements and run payroll. I also use QuickBooks online which is provided by the client when they purchase the software.

16. Do you come to my business?

I can come to your business if there are 25 hours or more of time to do the bookkeeping.

17. Do I need to clean up my books before I hand them over to you?

I will clean up your books. That's one area I love to do to get clients up to date.

18. Do you do bill pay?

I can do bill pay though I will need access to your banking information to do so.

19. Do you help with invoicing?

I can do Invoicing. It's a matter of knowing which client to bill and what items they have purchased.

20. Do you handle sales tax?

I do sales tax. I have California clients where I process the sales tax and pay online. To find out more, give us a call to handle all your bookkeeping needs.