Frequently Asked Questions

Ok let’s be honest, there’s nothing exciting, fun, or sexy about bookkeeping! Yet every business needs it done. So, what options do business owners have?.........

1. Do it on their own – This means usually waiting until last minute, then rushing to get it done, and usually doing it incorrectly for lack of knowledge/know how! Also takes time away from focusing on activities that will grow their business (i.e. customer interactions, marketing, etc.)

2. Hire an in-house bookkeeper – Not usually an ideal option for small business. It adds an extra employee to the payroll, requires office equipment, office space, benefits etc. Nice to have but a very expensive option!

3. Ask their CPA firm do it – Not a bad option, but most CPA firms are in a hurry to serve as many clients as possible. Meaning you’re just another number on their client list. Sure, it will get done but are they taking the time to explain and help you understand your finances? Is also generally a more expensive option

4. Outsource their bookkeeping – Cheaper than hiring in-house or going through a CPA. You can find very good and experienced bookkeepers and it can all be done virtually! Some even offer more services than just bookkeeping (i.e tax prep, advisory, etc.). Can be done virtually and efficiently.

Of course, my suggestion is number 4! Why? Because that’s what we do! Your bookkeeper or accountant really should take a vested interest in your business. They should not only be “keeping the books” but should be giving you financial reports, giving you insight into the health of the business, providing suggestions for financial improvement, helping you forecast, prepare for tax season, and most of all explaining it all not in “accountant” terms but real world, easy to follow, explanations and guidance. Your bookkeeper should be a trusted advisor in your business!

• What are your prime costs? Are they in line with industry standards?
• What should your accounting period be? Since the days of the week tend to affect business (Friday night might be busier than Tuesday night) it can be useful for restaurants to use a 4 week accounting period.
• Inventory Management - It's important for restaurants to monitor inventory weekly as opposed to a retail store that may only need to do it monthly, quarterly, or annually.
• What are your vendor costs? Are they fluctuating without you knowing? Did your product price increase since your last order?
• Do you need to account for employee tips?
• Is money/product leaving your business without you knowing?