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WHAT IS BOOKKEEPING?

WHY IS BOOKKEEPING IMPORTANT?
DO YOU NEED A BOOKKEEPER?

BOOKKEEPING:

Bookkeeping is defined as "the activity or occupation of keeping records of the financial affairs of a business."  With some background and some training, just about anyone can learn to do bookkeeping.  The question is not really can you do it, but more of do you want to take time away from your business and do your own bookkeeping.

Accurate bookkeeping can be very time consuming.

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WHAT IS RECONCILIATION?

A large part of bookkeeping is performing reconciliations. 

A reconciliation of a bank account is matching all transactions on a company's books to the transactions on a company's bank statement and identifying and correcting (if necessary) the company's book records OR identifying mistakes a bank may have made in the company's bank account.

An account reconciliation is identifying what items comprise a balance in a company's book accounts.  For example, you may have an account called "Deposits" for things like rent or things you have purchased to be delivered later.  The reconciliation will itemize the amounts of each deposit that comprise the account balance.  When this is done, corrections can be made if items are misclassified.

  • What Are Financial Statements?
    Financial statements are the report card of a business as well as the basis for handling one's taxes. ​ The basic financial statements are, (1) Profit & Loss Statement, (2) Balance Sheet, (3) Receivables and Payables Aging Report, and (4) Statement of Cash Flows.​ ​ Profit and Loss Statement​​ ​A Profit and Loss Statement itemizes all categories of income and expenses and gives the business owner a "bottom line", or an amount of income or loss for the business for a defined period of time.​ Balance Sheet A Balance Sheet itemizes three distinct categories, Assets (things owned), Liabilities (things owed), and Equity (the book value or worth) of the business. Receivables and Payables Aging Report A Receivables and Payables Aging Report lists all amounts owed to the business and all amounts owed by the business and gives a timeframe of how long they have been owed to and owed by the business.​ Statement of Cash Flows A Statement of Cash Flows defines where and how much cash a business has generated and where the cash has been spent. This is different from a Profit and Loss Statement because not all cash received is income and not all cash spent is an expense. Additionally, not all income is derived from cash and not all expenses arise from cash spent.​
  • Do You Need A Bookkeeper?
    The average business owner definitely needs a bookkeeper. If a person has training in bookkeeping, they may be able to work on their own books effectively and efficiently. Very few people have that kind of training or want to devote their time to doing their own bookkeeping.
  • Why Is Bookkeeping Important?
    Bookkeeping is an integral part of owning a business. Whether you are a multi-million-dollar company or an individual insurance agent running a small office, you need to know if you are making or losing money; you need to know what products are the most profitable; you need to know how you are spending your money and what you are spending your money on. The bottom line is that you need to know the dollars and cents of your business. ​ Bookkeeping breaks all of this down for you and helps you to understand where to focus your efforts. ​ Bookkeeping is also important in the proper preparation of your income and other tax returns.
  • What is your pricing?
    Cost of Bookkeeping: Bookkeeping services start as low as $110 per month, with pricing varying based on the complexity of your business's needs. The simplest companies may see this minimum cost, while others may incur higher charges depending on the volume and type of work required. Factors Affecting Cost: The cost of bookkeeping is influenced by the level of automation available and the time required for tasks. Automating bank and credit card feeds can reduce costs by eliminating manual data entry and potential errors. Additional services such as Sales Tax Returns, payroll integration, and accounts receivable/accounts payable management will increase the overall cost based on the time and complexity of the work involved.
  • What services does your firm provide?
    We offer a comprehensive range of services to support your financial needs, including full-service bookkeeping covering all aspects of financial management, preparation of monthly, quarterly, and annual financial reports such as Profit & Loss, Balance Sheet, and Statement of Cash Flows. Our services also include monthly bank reconciliation to ensure accurate recording of transactions, assistance with sales tax returns filing for compliance with the California Department of Tax and Fee Administration, payroll preparation including processing, direct deposit, tax filing, and W2 distribution. We handle information returns such as W2s and 1099s to ensure IRS compliance, conduct thorough account reconciliation for accuracy in financial statements and income tax filing, provide expert consultations for business improvement, and offer automated accounts payable and accounts receivable management to maintain credit integrity and streamline operations.
  • When should I hire Freedom Bookkeeping and Accounting?
    At Freedom Bookkeeping and Accounting, we aim to empower your business with actionable insights derived from financial data. We understand the challenges and demands of running a business, leaving you with overwhelming tasks and stress. Let us take the burden of accounting off your shoulders, allowing you to concentrate on driving your business forward.
Senior Businesswoman
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