Get Answers to Frequently Asked Questions
Many people are unsure about the differences between a bookkeeper and an accountant. You’ll find the answer below, along with answers to several other common questions about Mooresville, NC based K.A.C. Bookkeeping Services, Inc. and our industry.
If you have questions that are not specifically addressed below, please take a moment and call us today at 704-658-1714. We welcome your inquiry and look forward to assisting you in the growth of your business.
- What are the over-all cost benefits of outsourcing your bookkeeping?
- What are the other benefits of outsourcing your bookkeeping?
- What will I receive from K.A.C. Bookkeeping each month?
- Can good bookkeeping help me establish a Line-of-Credit?
- Why should I team with K.A.C. Bookkeeping to do my company’s bookkeeping?
- What are the major differences between a bookkeeper and an accountant?
- Why is it so important to have good bookkeeping records?
- What kind of access will I have to my file?
- What makes your business successful?
1. What are the over-all cost benefits of outsourcing your bookkeeping?
Direct Cost Savings– This will probably surprise you, but the cost could be more than 85% lower than what you pay to a full-time employee.
Example: If you were to pay a full-time bookkeeper $40,000, and have additional payroll taxes of 7.65%, and a state unemployment tax of 1.45%, your annual payroll cost for this person would be almost $45,000. Due to our ability to turn your books around accurately and quickly, your annual cost with K.A.C. Bookkeeping Services, Inc. could be as low as $6,000. That is a $39,000 annual savings, or over $3,000 per month! This is money that could be used to re-invest into your business or better yet, put into your pocket!
Primary Benefits– Depending on what type of group policy you offer, and how many employee(s) you have who are full-time, you may be required to offer health insurance coverage, of which the company is responsible for a minimum of 50% of the employee’s premium. With the rising cost of healthcare, this cost will have a huge impact on the profitability of your business.
Additional Benefits– You may have other benefits in place that your employee(s) would be eligible to participant in, such as: (SEP, IRA, 401K, Profit Sharing, Dental Life, STD, LTD, etc.) All of these bring additional expenses to your business.
Workers Compensation – You will have to pay additional monies for workers compensation insurance. Workers Compensation rates are assessed by the insurance company & are based on actual payroll amounts paid to employees. Your rate will vary depending on what kind of business you operate and how your employees are classed.
2. What are the other benefits of outsourcing your bookkeeping?
Timeliness– Quick turnaround time. Bookkeeping is our business, so provided we receive all necessary information, we can typically get a complete record of your books back to you within 3-5 business days.
Confidentiality – All records are kept confidential and we discuss nothing with your employees or any unauthorized person. If you have an internal bookkeeper, it is important that the employee is not sharing the company’s confidential financial information with other employees.
Accuracy – Before your financials or books are turned over to you or your accountant, all books are thoroughly reviewed for errors or inconsistencies.
Bonded & Insured – A professional bookkeeper will be bonded and/or insured, much like an Accountant.
3. What will I receive from K.A.C. Bookkeeping Services each month?
All of the data which you provide will be entered into a computerized file. Within the file, all accounts will then be reconciled, so that financial, and other types of reports, can be generated. These reports include, but are not limited to, Profit/Loss, Balance Sheet, Open Invoices, and other reports that are vital to your operation. You will be able to compare month-to-month, or year-to-year figures, which will help you, along with our assistance, identify opportunities with your business. We will always be available to talk with you about your questions or concerns.
4. Can good bookkeeping help me establish a Line-of-Credit?
Absolutely! In today’s tough economic environment, it’s evident that it has become increasingly difficult to secure a Line-of-Credit (LOC). LOC’s are vital to the life of most businesses. Before granting a LOC, all banks, or lending institutions, will require an accurate financial picture of your business. With an up-to-date, computerized financial record of your business, you will be able to quickly provide the bank whatever they request. This could include current, and past, P/L’s and balance sheets with Assets & Liabilities, along with other financial reports.
5. Why should I team with K.A.C. Bookkeeping Services, Inc. to do my company’s bookkeeping?
KAC just doesn’t want to complete your bookkeeping, we want to work with you to make your business as successful as possible. We take great pride in working to make this happen. We have a team of qualified individuals, one of which will be personally assigned to accurately complete your bookkeeping in a timely manner. Most of all, we offer local, confidential and experienced bookkeeping, at an affordable rate.
6. What are the major differences between a bookkeeper and an accountant?
A professional bookkeeper enters all monthly financial data, reconciles, balances & reviews all financial data. They also prepare, and then review financial statements with the business owner(s). Today’s professional bookkeeper is expected to know:
a. What Debits & Credits are
b. How to set up a proper Chart of Accounts
c. Must be able answer questions from the company’s tax preparer.
The accountant (Certified Public Accountant), is generally the person whom the bookkeeper turns all of the annual bookkeeping records to, in order to prepare annual tax returns. They should also give sound tax advice & tax planning.
TIP: You should never have the same person/company who does your bookkeeping, prepare your tax returns. This offers an extra set of eyes for errors and this also helps as a double check on any inconsistencies in the accounting of the books.
7. Why is it so important to have accurate bookkeeping records?
Having good bookkeeping records not only helps you to see on a monthly, quarterly yearly basis how your business is doing, but it assists in making your business more effective. By the analysis of the data, you will be able to determine what your strengths and/or weaknesses are in the growth of your business through financial planning/budgeting. Accurate records makes year-end processing of 1099’s, W-2’s and tax preparation must easier. If the books are maintained on a regular basis, your CPA should have a very easy time preparing your tax return, which in return will save you money. Having good bookkeeping records is one of the keys to success in any business. How many people do you come in contact with, that have a great business, but complain that they have no idea where they are financially. How many people know what vendors should or shouldn’t receive 1099’s or what type of 1099 they should receive?
8. What kind of access will I have to my file?
In today’s technological age, there are several different ways in which to complete your bookkeeping. All of which, allow you to have the access to your file which you desire. These options include working on your system, or ours. They also include an option where both client and bookkeeper can work on the file in real time. The key is for you to have the financial information you need at your finger tips. K.A.C. Bookkeeping Services, Inc. prides itself on their availability to their clients.
9. What makes your business successful?
Having up-to-date, accurate bookkeeping is very important to the success of your business. However, we believe the most important aspect of any business is listening to your client, and to your employees.
Customers/Clients – Pay attention and listen to your customers/clients, no matter if it’s a suggestion or complaint. Also, give prompt and accurate responses to those questions asked by your customer. In our business, we are only successful, if YOU are successful!
Employees– Listening to your employees is important. Encouraging new ideas and new ways of doing things has been proven to make businesses more profitable. Employees like to feel that the work that they are doing is important, and that they are a part of the success of the business. It’s important to solicit employee input and to put those good ideas into practice. It increases morale, and more often than not, increases productivity substantially.
TIP: Take the time to give credit to your employees!
Call us today at 704-658-1714 to set up a FREE Consultation!