A Simple and Efficient Bookkeeping Process
When I start working with a new client, it is important that the business owner and I discuss the bookkeeping process and how it all works. We are partners on this journey and communication is key!
While I do customize the process for each client’s needs, here is a quick overview of the typical process when starting with a new client.
Step 1: Review Information & Current Processes Already in Place
Typically, the clients I work with already have some sort of bookkeeping system in place, whether they’re doing it themselves in a spreadsheet, through a software system like QuickBooks or Xero, or they may have previously used another bookkeeping company. The first step is to review everything and get an idea of how things have been done in the past.
Step 2: Make Improvements Where Needed
For the clients who have learned the bookkeeping software on their own, they may have made a few mistakes along the way. A prior bookkeeper may have not been properly trained or recorded transactions correctly. Once I’ve analyzed everything and know what’s going on, I then make improvements and “clean up” where necessary. This could mean fixing transactions and classifications from the prior year, so the numbers are correct and balanced or starting a completely fresh set of books. I will also provide any software training for the client if they will be entering some things on their own.
Step 3: Provide the Information You Need
It is very common for a business owner to provide their CPA with a giant box of receipts and statements at the end of the year. However, someone in that CPA’s office has to go through that whole box to enter all of that data needed to file your taxes. The problem is that this approach doesn’t give you the reports and business data you really need. In order to make your business more profitable and minimize your tax exposure, the classification of your income and expenses needs to be on point. This will give you proper analysis of the state of your business and properly balanced reports. The reason: INCREASE PROFITS!
With efficient bookkeeping in cloud-based software, you can access your financial data reports anytime, anywhere and have the information you need to make informed business decisions. This also makes providing information and reports to your CPA a breeze.
Contact me to schedule a free consultation. Let’s discuss what working together would look like for your business.
