What is Security? How do you define its value for your Business?

Security means safety, as well as the measures taken to be safe or protected. For Business, security is the defense against financial failure; financial independence. 

Small business owners thrive on getting a product or service implemented. You hire experts to research, identify your product market or clientele and establish a focus and drive of your businesses direction. You hire experts to develop or create your ideas into something you can sell. You hire experts for marketing to bring your product or service to your audience. You hire staff to make your product or do the work to bring your services to life. 

You are creating security in the sustainability of your business. 

Why should your financial knowledge of your business be any different?

Many business owners try to “do” their own books. There is an entire market of accounting software products that says you can. They offer bells and whistles in automation to record your transactions and memorize your coding – But what do the numbers mean? 

How much do your sales cost you?
How much overhead expenses do you have to cover before you are profitable?
How do you leverage your financial outcomes to obtain lending from a financial institute and grow your business to the next level? 
What are the advantages of leasing or buying that new piece of equipment? 
How do you plan for your business to maintain good cash-flow?
How do you know if your business is financially secure?

Experts in the bookkeeping and accounting service industry offer small business owners a partnership. They are not just a resource to maintain accuracy of your business transactions, but the authors who provide the financial reporting that tells a story of your business financial health. It is this story that paves the road map to how you operate your business. It is this story that allows you to see if your business is and will continue to be financially secure. 

Hiring accounting experts who will go beyond transactional recording of your business activity and provide actionable financial information will ensure that you create security for your business being sustainable now and into the future. 

At JK Bookkeeping we take our clients financial security seriously and are dedicated to ensuring our services provide the highest level of reporting and follow through to ensure our clients financial picture is complete. 

Experience Peace of mind with our Professional Bookkeeping Services. 

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business. 

Understanding Auto Expense Deductions & Tracking Requirements

In today's business world, maximizing business profits is a focus for most owners. No matter how big or small your business is, it pays to be informed on how deductions are limited and the record keeping requirements to ensure they will be allowed at tax time.

For business use of auto or transportation, there are two formats: Standard Mileage Deduction and Actual Expense Deduction.   

The Standard Mileage is calculated by using the IRS standard mileage rate which is updated on a calendar annual basis and can be found at www.irs.gov. This rate is then multiplied by the number of miles driven for business use.  

Actual Costs Deductions include gas, oil, tolls, parking fees, insurance, repairs, registration costs, garage rent, tires, repairs, depreciation or lease payments.  

The benefits of each type of vehicle write offs can vary depending on your total costs verses the amount of miles driven within a tax year. Both options are limited to the percentage of business use calculation if the vehicle is also used for personal travel. If you have low vehicle costs and high mileage, you may have a higher deduction by using the standard mileage reimbursement. If you have high vehicle costs and low mileage, the actual expense method may provide a higher deduction.  

Other than the deduction calculations, there are some IRS regulations that need to be considered when choosing between these options.

⇒    Once you chose actual expense method and claim depreciation for the vehicle used for business, you cannot change back to the standard mileage reimbursement format for the life of the vehicle used in the business.

⇒   If a vehicle is owned by the Corporation/S-Corp, you can only use the actual expense calculation

⇒  Actual expense calculation is only allowed for the % of business use the vehicle is used for so these deductions can be limited if the vehicle is also used for personal use.

⇒   Selling or trading in a vehicle where the actual expense deduction for business use was allocated, can create a business taxable loss or gain calculation.

⇒   For standard mileage option, you may be able to change to the actual costs in future tax years.  

For either Auto Expense method, appropriate record keeping is Essential!

Standard Mileage Recordkeeping:

Your mileage log must include the starting mileage on your vehicle's odometer at the beginning of the year and its ending mileage at the conclusion of the year. Each time you use your vehicle for business purposes, you must record the following information:

                  The date of your trip

                  Your starting point

                  Your destination

                  The purpose of your trip

                  Your vehicle's starting mileage

                  Your vehicle's ending mileage

                        Tolls or other trip-related costs

Note, mileage from your home to office is considered commuting and is not allowable. Mileage from your home to your first client appointment may also be limited unless you meet the home office distinctions.  

Today’s technology has numerous tools that can assist you to maximize your Standard Mileage deductions. Mile IQ, Triplog, mile tracker are a few of the apps available for free.  

Actual expense must have all receipts with itemized details of the expense (insurance policies, lease documents etc.) Accurate tracking for percentage of business use must also be maintained so tracking of mileage may still be required for this deduction. If a receipt is lost the IRS may disallow this expense during an audit. 

IRS Publication 453 defines the guidelines on these and other transportation regulations in more detail.

At JK Bookkeeping we are happy to review and assist with calculating your auto expenses to help you determine the financial aspects of auto deductions for your business. Always consult with your tax preparer or CPA before choosing or changing the way you deduct for auto expense.

Experience Peace of mind with our Professional Bookkeeping Services. 

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!

Choosing the Best QuickBooks Online Subscription for your Business

In today’s business dynamics, online access to your financial information is valuable. QuickBooks online accounting offers many solutions with four types of subscriptions available, but how do you choose the right subscription for your business?

The first step is to review the key business needs of your financial data.

⇒    Do you have multiple outside contractors to track and report 1099 filings at year-end? 
⇒    Do you need multiple user access?
⇒    Do you always pay vendors by check immediately? Do you have Bill Pay terms?
⇒    Do you have inventory tracking?
⇒    Do you want budget tracking and reporting options?
⇒    Do you have multiple locations that you want to track financial performance?
⇒    Would your business benefit from tracking income and expenses by client or customer? 

Analyzing your business requirements and choosing the right subscription in the beginning is an important step that can save you time and money. At JK Bookkeeping we are QuickBooks Online Pro Certified. We offer clients a thorough business review to ensure the subscription you chose will best meet your business needs. Already have a subscription? JK Bookkeeping’s thorough business review can provide guidance on the value of your subscription or recommend upgrading for performance that better meets your businesses accounting needs.  

Experience Peace of mind with our Professional Bookkeeping Services.

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!

Why Hire a Bookkeeper?

Most small business owners wear many hats and have a can do everything attitude – something that serves them well as they grow their business and helps keep costs down in the start-up phase. It’s difficult to justify delegating certain aspects of a growing business to someone else and even more so when it comes to hiring financial help like a bookkeeper.
 
Most business owners are competent at basic accounting but as a business grows, the accounting and tax planning become more complicated and takes up more time, time from working on growing your business and leaves most business owners worrying about whether they are doing it correctly.
 
A great bookkeeper does the day to day hands on tasks:  making sure the bills are paid, submitting invoicing and following up on them – tracks company expenses and assets and ensure they are properly recorded and ensure the company is ready for tax time along with any other reporting.
Recent innovations by secure remote access providers mean that bookkeeping has never been more accessible or practical for companies.
 
      Outsourcing your business’s bookkeeping frees up valuable time that can be better spend working on your business.  Time consuming back-end functions can be a distraction from the day-to-day running of things and having a bookkeeper can save you endless hours of time-wasting distractions.
       
      Outsourcing your bookkeeping saves you money by being able to schedule per your businesses needs and not having to have additional payroll expenses.  As you scale your business your bookkeeper will work with you to tailor a package for your needs.
   
      When you hire a bookkeeping service, you are employing an individual with accounting experience and education. These individuals know how to enter and classify your transactions. This not only helps keep your books accurate; it also helps for pre-tax planning.
 
      A qualified bookkeeper is a great way of having full time access to an expert who is on your side while only paying for the time you need them leaving you more time to focus on your business.

It’s very common for bookkeepers to have more work in cleaning up the records when starting to work with a new client than if they had of been involved with the business from the beginning.  It is important to have the proper systems and processes in place as early on as possible and this allows clients to make better and more educated decisions. The benefits to your business are worth the costs of the service. 

If you’re already working with a bookkeeper, it’s important to know how to assess their performance and make sure things are on track. This is especially true if numbers and finances aren’t your field of expertise, as is the case for many clients.
 
Experience Peace of mind with our Professional Bookkeeping Services.

Please contact us today to schedule a complimentary 30 minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!

The Five Money Saving Benefits of Electronic Payments

In the world of electronic communications, work environments and tools that shape our daily lives paying bills with paper checks is archaic. 

What are Electronic Payments? 

The three most common types of these options are:
⇒    Bill Pay from your checking account: vendor information is entered into your business banking forum. This is known as a “push” payment systems where payments can be set up as recurring for same amount on a specific date or manually enter amounts due as they occur. Your bank then mails the payment to your vendor, or the bank will send the payments electronically (utilities, credit cards). 
⇒    ACH & EFT Batch Payments are specific electronic formats that upload vendor and payment information directly from a file downloaded from your accounting software.
⇒    Bill Pay through your vendor is a “pull” payment format where you provide details of your bank routing and account numbers or enter credit card payments. 

Your Savings!
⇒    No longer worry about the “last check” in the book because you forgot to order more
⇒    No more printer jams and check number errors
⇒    No more postage – savings of $600 per year for businesses who write 100 checks per month. Bill Pay is FREE service with most banking providers
⇒    ACH/EFT Batch payments fast, efficient electronic transfer of bill payments directly from your accounting software.  Saving you time and money - no printing, no stuffing envelopes, no taking checks to the mail
⇒    CASHFLOW! You set the date the bills will be paid or ACH batch is pulled! 

At JK Bookkeeping we provide recurring Vendor payables processing with online bill pay options so call us today to find out more. 

Experience Peace of mind with our Professional Bookkeeping Services.

Please contact us today to schedule a complimentary 30-minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!

10 Questions to Ask when Hiring a Bookkeeper

Hiring a bookkeeping service to manage your accounting needs can help you identify potential risks and opportunities, in addition to ensuring the integrity of your financial data. Even the smallest business owner can often benefit from their help and advice. Protect your business by taking time to find and hire the right bookkeeping partner and ensuring they are the right fit for your business.
 
1.    What are your qualification? 
Every bookkeeper should have an accounting or bookkeeping qualification – no exceptions.
 
2.    Do you have any references?
Every great bookkeeper should have references or testimonials they can provide you.
 
3.    What experience do you have with businesses like mine?
Your bookkeeper should have some experience in the industry you are in, a similar industry or be working with companies of similar size.  Great bookkeepers get to know a client’s business right away and need very little industry specific training.
 
4.    What types of clients do you currently have?
This will give you an idea if they have clients that are similar to you in size and volume.  Also discuss the specific growth stage of your business and your projected needs over the coming year.
 
5.    Are you familiar with my accounting software?
Any potential bookkeeper should know how to use your accounting software and other integrated technology.
 
6.    What other services do you provide?
Many bookkeepers do much more than just keep the books, such as providing with assistance with technology & online invoicing.  Sometimes it’s good to have one vendor take care of multiple items which can save your business time and money.
 
7.    Are you a member of a bookkeeping association?
A great bookkeeper will also ensure that your business remains compliant as they stay up to date with changes in regulations. Bookkeeping associations hold regular training in these areas, which will benefit you.
 
8.    What are your rates and how do you charge?
You need to know the hourly, weekly or monthly scheduled rates if provided.  Some bookkeepers only work by the hour while other have a minimum charge per month or package deals.
 
9.    Do you work with my accountant?
Most bookkeepers will have no problem working with your accountant to ensure your books are up to date and ready for tax time.  Paying a bookkeeper for some services will save you a lot of money on accountant’s fees over the course of the year.  Great bookkeepers have working relationships with CPA’s and quickly dovetail their services with any new firm.
 
10. Do they have errors and omissions insurance?
Insist on working with only accredited and insured professionals to handle your finances.
 
Choosing the right bookkeeper for your business is just like choosing any other staff member. At JK Bookkeeping we focus on answering your interview questions as a starting guide to getting the right services for your business. Based on your financial reports, we can provide direction on how you can improve your business performance as well as share experiences from their other clients.

If you’re already working with a bookkeeper, it’s important to know how to assess their performance and make sure things are on track. This is especially true if numbers and finances aren’t your field of expertise, as is the case for many clients.
 
Experience Peace of mind with our Professional Bookkeeping Services.

Please contact us today to schedule a complimentary 30 minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!

What are the costs of hiring a remote Bookkeeper?

Many new business owners spend more than they save when doing their books themselves. Managing your company’s financial books is a time consuming process that often takes a back seat over other important tasks of running your business. How effective your accounting is, not only impacts your cash flow, but your survival rate. Accurate and timely bookkeeping records are crucial for preparing your annual federal and state income tax returns and filing sales tax and payroll taxes in a timely manner.

The exact cost of hiring a bookkeeping service will depend some key factors about your business:

1.    What stage is your business?

New businesses are most likely to not have established accounting systems or processes in place. Hiring a bookkeeper who can assist with this will have some initial additional costs, but their knowledge to manage the books and prepare the financials can preempt the challenges that can arise in a new growing business and will have a far greater impact and create savings for your business as it grows.

2.    How big is your business?

Outsourcing your bookkeeping is a must if you don’t have the internal resources to handle all of your financial transactions and a great bookkeeper is an integral part of every growing business.  The nature of your business and volume of transactions will influence the amount of time it will take to keep your books up to date so you have timely and accurate financials throughout the month.

3.    What type of service is required?

The real question for a business is what part of my business do I need assistance with? Bookkeeping provider services can range from simple after the fact reconciliation of your bank and credit card transactions to full charge bookkeeper where all vendor bill pay, customer invoicing and bank reconciliations all processed by your provider. More extensive bookkeeping services could include cash-flow tracking, budget and forecasting and payroll services provided.  

4.    How much can you expect to pay?

While prices can vary for qualified bookkeeping services you should expect to pay between $50-125 per hour depending on the service level provided. We would always caution against the hourly rate being the only measure of selection. It can be far most costly to hire a cheap, not so good bookkeeper. A certified bookkeeper has met certain education and experience or competency requirements allowing them to prepare all of your financials, transactions, reconciliations accounts and work in tandem with your accountant to ensure everything is ready for tax time. 

Hiring a bookkeeping professional to manage your accounting needs can help you identify potential risks and opportunities, in addition to ensuring the integrity of your financial data. Even the smallest business owner can often benefit from their help and advice. Protect your business by taking time to find and hire the right bookkeeping partners.

At JK Bookkeeping Services our goal is to fulfill your financial bookkeeping needs so you have time to focus your energy on the important aspects of running your business.

Experience Peace of mind with our Professional Bookkeeping Services.

Please contact us today to schedule a complimentary 30 minute consultation and learn more about how outsourcing to JK Bookkeeping can help your business.  Your Success is Our Success!