New to this system of virtual bookkeeping services and you're interested to know this blog is for you. Bookkeeping services comprise dealing with your business transactions and reconciling them to make sure there is no duplicate and no entry is missing out. The harder part is to reconcile and in this blog, we will discuss this in detail. We need to start getting ahead of the game for so right now we're going to talk about one of the most important ones.
Clean Up
Bookkeeping cleanup can be very detailed and there are many different steps and levels to doing the bookkeeping cleanup so what I want to talk about are the different things. If you're doing just monthly maintenance this is something that you guys want to do so the bookkeeping cleanup
First Part
The first part is learning how to read a balance sheet and income statement, the profit, and loss statement so those are the two main things that we need to know as bookkeepers
Balance Sheet
First, the balance sheet is going to have your bank um your bank balances so if at least in QuickBooks. Your assets and your liabilities will what you want to do with those is at least specifically for cleanup you want to make sure one your balance sheet and your bank statements are matching in the ending balance that's the most important part.
Your reports are the numbers that they need to create that tax return for your client. So if you're working with a CPA. The first thing they're going to look at is the bank statements at the end of the month versus the balance sheet bank statement at the end of the month so they have to match. So if you guys see the on-the-balance sheet guaranteed cleanup work needs to be done now how much cleanup work I’m not sure no one's going to be completely sure.
Income Statement
They’re just used in different terminologies sometimes depending on your client and their software. So the income statement is going to have the revenue that comes in and of that revenue. It's going to show all the expenses, that your client has and the reason why this is important is that these are where all the deductions come from for your clients’ tax returns
Reconciling
So what you want to do is you want to make sure you're reviewing every single column even if it's just a quick couple-minute review. The same goes for the balance sheet. as the bookkeepers, cleanup we need to look at all of the numbers we need to make sure everything on the balance sheet that's recorded is accurate you don't have to go one by one.
Office Supplies
Supplies might actually be considered an asset so I’m going to take a look at them. I’m looking at every single one and if doing a cleanup, guarantee that opening every single category on the balance sheet.
Second
The second part of the cleanup services that I’m talking about today is the bank and credit card reconciliations. The balance sheet and the bank reconciliations and the credit card reconciliations go hand in hand. We make sure that all of the transactions in our QuickBooks software tallies up to the bank statement
Duplicates
Meaning when the cash comes in and out and as you are recording, make sure we don't have duplicates because that could be a big problem we're recording it twice double transactions. You know that that's a big problem our numbers and our reports will be off. Catch everything that needed to be accounted for in our reconciliations. Well with QuickBooks you guys can take a look at their reconciliation reports. So if you're looking at the reconciliation reports then you can make sure that you are looking at the ones that unreconciled.
Tip
In reconciliation, if ending balance those don't match at the end of the month. If you pull November the last balance sheet as of the end of November. That ending balance in the bank part section should match the November bank statement or credit card statement those ending balances should match.
Conclusion
Virtual bookkeeping services comprise the recording, categorizing, and reconciliation of business transactions. To make it easier people shouldn't use their business accounts for personal use. It’s not good business.
