Frequently Asked Questions

Over the years, there are certain questions and certain topics we continually have to educate on to potential clients and current members. Here we wanted to provide you with education and info that could help you make decisions in the future.

What Does a Chief Financial Officer Do?

One of the things that sets our firm apart is that we provide owners with CFO Consulting. What this means is: we oversee the Treasury Department but what work with the Owner from the Executive level. We oversee and perform bookkeeping actions, we create financial money management plans with you, we assess financial goals annually and quarterly, we analyze your income and expenses annually and quarterly, we can oversee your Bookkeeper but it isn't necessary, we create strategies with you for business expansion, we review finance related actions, and more. We are looking at the big picture with the owner and we are goal-driven.

2

What Sets You Apart From Other Bookkeepers?

Four main things set us apart. One, we don't set up your transactions on rules and never assess what's happening. Two, we don't collect your money and then disappear off the face of the earth. Three, we have fun with our clients! We aren't the stiff, boring ol' bookkeeper. Four, we look at the big picture and we are goal-focused to help you have a better life.

3

What Makes Business Fail?

There are three things we've observed that make businesses fail and we've found reports and statistics that back this conclusion up. One, not managing money (cash flow out). Two, lacking confidence and skill to sell (cash flow in). Three, not being organized and therefore, tainting your PR image and upsetting employees. (cash flow in and staff retention). We fully handle #1, we contribute to #3 and we have a Preferred Partner that does #2 with amazing results!

4

Why Can Waiting to Hire Someone Cost More?

We've heard so many people say, "we aren't ready yet" "we can't afford it yet" or something similar. They feel that they can run the books on their own, "its no big deal." Let us tell you what we've seen 9/10 times. When we take over the books, the longer it's been managed by the owner, the more we have to clean up and catch up. This increases the cost of the CleanUp.

5

What Factors Influence the CleanUp Cost?

We have a checklist we run through to assess your Quickbooks accounts. Here are the general things that contribute: types of bank accounts and statements you have, how many bank accounts you have, how many businesses you own and how many Quickbooks there are, how many discrepancies we can see from our Free Estimate process, how many reconciliations are behind, whether you utilize invoicing and bill pay options, how many transfers you do, in addition to how cooperative you are in the process.

6

Why Do You Have to Fix Past Transactions?

When we take over the books from an owner, many times they have been trying to do the books themselves. We find many errors in how they chose to categorize their transactions. We've also taken the books over from other bookkeepers who couldn't get answers and therefore categorized erroneously. Miscategorizing can take away from total amount of deductions and/or record personal transactions as a business expenses and leave you open to audit liabilities. #CleanUps

7

Why Do You Have to Fix Transfers in a CleanUp?

If owners commingle expenses (personal and business) a transfer from one bank account to another should not be a transfer. If it's business going to personal, its a distribution. If it's personal going to business, its a owner contribution. There are times where there is an exception to this but we find that also if you mark it as a transfer, you cannot easily change it in the books if its wrong (if reconciled) and it will not go on a report to be used in a budget, it you select the radial button "transfer"

8

Why Do You Have to Fix My A/R to Do the Books?

When you invoice in Quickbooks, a CleanUp becomes more complicated. Each record is attached to other records and reports. One error leads to other errors that the owner may not think with because he/she is not a Bookkeeper or an Accountant using the Quickbooks for their roles/duties. There are three main errors we've found over and over. These are: wrong payment to wrong invoice (this affects collections and PR), not depositing cash when you collect cash (this leaves transactions in undeposited funds and doesn't allow deposits to be matched and also makes reports wrong) and last, client writes out check for wrong amount and owner doesn't apply the exact check amount to invoice (leaves inaccurate customer records).

9

Why Do You Have to Fix A/P in a CleanUp?

Your Accounts Payable can get messed up by not applying the right bill payment to the right bill or leaving bills in the bill pay window but you were paid for them. This affects other reports. It also creates problems with vendors. This can be tricky to fix because you need the owner's answers to fix it and sometimes they are just as confused as you are because they don't remember what was what at that point in time. This can increase the cost of the CleanUp because it DOES need to be fixed.

10

Why Do You Have to Fix A/P in a CleanUp?

Your Accounts Payable can get messed up by not applying the right bill payment to the right bill or leaving bills in the bill pay window but you were paid for them. This affects other reports. It also creates problems with vendors. This can be tricky to fix because you need the owner's answers to fix it and sometimes they are just as confused as you are because they don't remember what was what at that point in time. This can increase the cost of the CleanUp because it DOES need to be fixed.

11

Why Can't I Categorize that Expense That Way?

One of the most consistent things we've seen over the years are, expenses being categorized random, made-up names. For example, once we saw a category called "transfers". Categorizing is used for 1) doing a tax return and 2) reviewing your budget. Made up names do not help either of those.

12

Should We Use Rules in Quickbooks?

Most of the time we say "No" because rules seem glitchy in Quickbooks. Also, unless it's an exact thing that remains the same all the time, like a rent expense to the same vendor, categories vary for vendors. An example of this is Amazon expenses. We don't know if it will be personal, office supplies, furniture or something else. We usually don't use them but we also monitor our clients downloads weekly and talk to them weekly.

13

Why Do I Need ALL Bank Accounts Synced?

Reasons owners feel an account doesn't need to be synced: "we don't use it", "it's a personal account"etc. Let us tell you what we've learned over the years... they do end up using it (and we miss the transactions because it's not synced), it IS a personal account but they buy business purchases on it and we miss those because it's not synced.  Your best bet is to sync all accounts unless it's closed. For personal accounts, we usually recommend setting up a separate Quickbooks so we can catch the business purchases.

14

Why Can't I Just Delete It?

We don't care what "it" is, but most of the time, owners think that things can just be deleted without a consequence. Payments, invoices, expenses, etc. Transactions are often attached to other transactions for reporting purposes. Also, when you reconcile an account and delete something, it throws the reconciliation off. This is why you should hire a professional to run your books. This is also why CleanUps can cost more as we detect more red flags that we didn't see in the beginning.

15

How Can Recs Zero Out but be Wrong

We call reconciliations "recs" for short. You know how it has to be green in Quickbooks to show it's been balanced? Well, people think that this means it's correct automatically. If you are not closely monitoring the books, they I would not assume it's correct. Let's say you checked off the $10 expense to zero it out but it was the wrong $10 expense. This throws the records off. Let's say there are duplicates but one doesn't verify. These are reasons the "rec" can "go green", zero out but be inaccurate.

16

Why Do You Need to Do Reconciliations?

This is usually part of our CleanUp process, ensuring that all accounts are reconciled up to the latest date they can be. If done correctly, it verifies that we are not missing any expenses and that the balances in Quickbooks are correct. We want correct numbers so we can utilize the software program to make business decisions and run the business correctly.

Let's Work Together!

Contact us here so you can get a Free Consult and we can talk about what your needs are and how we can help achieve your financial goals.