Services we don't provide
Our bookkeeping service is geared towards those looking to keep things straightforward, easy and cheap. By focusing on offering a simple service, we believe we can deliver it better and at a lower cost than anyone. Consequently, below are a few examples of our limitations, as well as other business services that we don’t provide inventory.
- Tax Filings
- Accounts Receivable and Payable
- Inventory Management
- Payroll & Payroll Tax Liability
- Sharing a QuickBooks file
- Connecting with 3rd Party Software
- Consulting and Tax Advice
Tax Filings (Sales Tax, City Tax, Income Tax, etc.)
We are not licensed CPAs, so we aren’t properly trained to help with any tax filings (except issuing your year-end 1099s). It is in your best interest to ask your CPA for help. And for sales taxes, we can’t help you track these, as we are not involved in your sales process. If you use a Point of Sale system, it should track this number for you. You can then use a service like Avalara to pay your tax online, or you can ask your CPA for help. As a note, when we do your books since we code your entire bank deposit amounts to Income (which we know sometimes includes the Sales Tax collected), we code your Sales Tax payments against Income to account for this.
Accounts Receivable and Payable (A/R and A/P)
We can’t help you pay your bills or issue your customer invoices. But you don’t want us doing that anyway, as it’s more of an administrative task. Since we are trained financial accountants, we are overqualified personal assistants. It’s not the best use of your money. We recommend hiring a personal assistant or secretary to help with tasks like these. Check out GetHarvest.com or SimplyBill.com for helpful online software. If you use QuickBooks to do your invoicing or bill paying and check to printing, having us do your books will not affect this since we are basically making a copy of your file at We can’t help you pay your bills or issue your customer invoices. But you don’t want us doing that anyway, as it’s more of an administrative task. Since we are trained financial accountants, we are overqualified personal assistants. It’s not the best use of your money. We recommend hiring a personal assistant or secretary to help with tasks like these. The time we take over your books. So your original file stays intact, whether you use Desktop or Online. You can continue to use your QuickBooks file for tasks like A/R, A/P, printing checks, etc. Think of your QuickBooks file as a program for those specific tasks, rather than bookkeeping. The file we keep will be separate from the file you keep. Please note these files cannot be merged, but there is no need, as we don’t need access to your file in order to complete the bookkeeping each month. And in most cases, the invoices you’ve issued don’t affect your financial statements as they are not considered income until the money hits your bank, so we will record it then.
Managing inventory is a very hands-on task. Each item going in and out of your shop needs to be accounted for. As we work remotely, we can’t help with this (Check out Inflowinventory.com for an online inventory system). So instead of coding inventory purchases to “Inventory Asset”, then moving that amount from “Inventory Asset” to “Cost of Goods Sold” once the item is sold, we take an easier approach. We code all of your inventory purchases directly to “Cost of Goods Sold”. Then, at tax time, simply provide your CPA with the value of your Inventory as of 12/31, and they will make the appropriate adjustment to your books to reflect the correct “Inventory Asset” balance. If you would like the inventory balance updated mid-year, feel free to send us the cost of your inventory on hand as of a certain date and we will make the adjustment.
Payroll & Payroll Tax Liability
We don’t offer payroll services, as we know we can’t provide the same value that a dedicated payroll company can. If you are looking for help administering payroll, we suggest calling James Merlini, the owner of WorkPerks, Inc., a San Diego based payroll company who offers excellent service and prices. His phone # is 858-888-0819.
When it comes to recording payroll on your books, again we keep it simple. All payroll transactions that hit your bank account get coded to “Payroll & Subcontracted Labor Expense”. The reason we combine “Payroll” with “Subcontracted Labor” is because without requesting and booking every payroll report, we have no way of knowing if when someone receives a check it is a payroll check, a reimbursement check, a subcontractor, etc. If you would like to see your payroll details, you can refer to your payroll reports. Or if you want to provide us with your payroll reports now and every month (or online access to your payroll provider), we can record these details in your books.
Sharing a QuickBooks file
We don’t allow you to work out of the same QuickBooks file that we keep for you. If we did, not only does it create a technical headache trying to share the file, but there are likely to be problems that would have to be fixed at your expense. So to keep efficiency high and therefore costs low, we keep our own QuickBooks file for you and send you reports monthly. You have the ability to review and edit all work in a unique and easy system we provide. And if you prefer, you can still download a copy of the QuickBooks file at any time you prefer, but it will not “sync” with any QuickBooks file you might have, nor will any changes you make to the file be reflected in the copy we keep. Changes are submitted using a different system. If you have QuickBooks Online, when you sign up with us we will download your file to the desktop version. You can keep your subscription active if you wish, but changes you make will not be reflected on our end.
Connecting with 3rd Party Software
There are many 3rd party applications that can sync with QuickBooks. However, we do not connect our client’s files with any such applications. Regardless of how easily the application claims to connect, unfortunately, it's not quite as simple as pressing a button on our end. It's likely going to take a lot of work on the backend to make sure everything matches and syncs up. What if the connection breaks, the dates don’t match the bank, etc. There are lots of variables, and we wouldn’t want to get into a situation where we spend lots of billable time troubleshooting. However, we find it unnecessary and inefficient to worry about these connections anyhow, simply because it would just be duplicating information. For instance, if you have a Point of Sale system or a Merchant Portal, there is no need to worry about syncing this with QuickBooks in order to bring over the sales information. If you want to know which items you sold, whom you sold it to, etc, this information is likely available in the reports provided by that application. So in this example, your QuickBooks file would show your basic cash basis income amount (which is what you will file on your tax return), and your POS system will show the detail of those sales.
Consulting and Tax Advice
Although we are categorizing all of your business transactions and providing you with reports based on those categorizations, we are not licensed to give financial or tax advice regarding the reports we provide. Such advice could include where and how to code your business transactions (since this affects your tax return), analyzing your cash flow, discovering financial trends, insights into where your spending can be optimized, what expenses are or aren’t tax deductible, etc. If you have such questions, it would be in your best interest to review them with a CPA or Financial Advisor, as they are better qualified and licensed to give this kind of direction and advice. We encourage you to share your Dashboard link with these professionals so that you can review your transactions together.