Your Bookkeeping Questions Answered

Here at Biz Babe CPA we take empowering female business owners seriously. That means giving you the resources you need to feel confident and strategic when it comes to your finances, and then stepping in to help when it’s time to let go of that part of your business. Today we want to share some of the most frequently asked questions we receive at Biz Babe CPA.

So...what is bookkeeping?

We’re going to get right back to the basics. What is bookkeeping? The bread and butter of Biz Babe CPA, of course. But what does it mean and why is it important? We got you.

Bookkeeping is simply the process of recording and organizing all transactions that occur within your business. Bookkeeping is how we can see if your business is making money, losing money, growing, or declining. It is absolutely essential in making informed decisions. If you have been avoiding looking at your business’ numbers, this is your sign to set up an appointment right now. Being equipped with this information is non-negotiable if you want your business to thrive.

What is the difference between a bookkeeper and a tax preparer?

A bookkeeper (hello, it’s me!), is someone who is proactively categorizing your income and expenses in real time. They also provide reporting on sales, expenses and profit each month. Something specific you’ve got your eye on? At Biz Babe CPA we know every biz and biz babe is unique, so we customize our reporting so you can easily see what’s most important to you. 

A tax accountant is someone who takes your books at the end of the year, makes tax adjustments and uses them to prepare your tax return. If your books are up to date each month, there is no tax time scramble. Is the lightbulb on yet? Without proper bookkeeping, you’re adding a lot of unnecessary stress on yourself and your tax accountant. Tax people deserve happiness, too! 

What is a bank reconciliation?

A bank reconciliation is the process in which a bank account within your books is matched to the ending balance on your monthly statement (remember those things you used to get in the mail?). This ensures that all transactions have been accounted for, and nothing has been counted twice! We like to keep it nice and accurate, okurr?

What is bookkeeping software?

Bookkeeping software like Quickbooks Online is a software that links to your bank and credit card feeds and brings in all of your transactions. It then allows you to categorize those transactions and creates reports like a “profit and loss statement” and a ‘balance sheet” based on how you categorize. 

Now what?

Well, our hope is that you use this information to become more engaged with the finances of your business. Ask questions. Be curious! 

You might also be in a place where this information is helpful, but it’s not the best use of your term to button up your bookkeeping each month. That’s where we come in. Stick to what you do best, we’ll handle the books. Can’t wait to hear from you.