Framingham Bookkeeper

3 Reasons to Hire a Bookkeeper

Framingham Bookkeeper

A Framingham bookkeeper is one of your most important business asset. He or she provides financial record maintenance to assure all of your transactions are documented. Bookkeepers also provide accurate financial information such as current funds availability for cash flow. Do you have a bookkeeper? If not, learn 3 reasons why you should hire one today!

Framingham Bookkeeper

Convenience

Business owners are already faced with a lot of responsibilities. Counting numbers and researching transactions should not be one of them. Your time is valuable. Therefore, hire a bookkeeper to maintain your business financial records. Many bookkeepers are flexible. The best ones will evaluate your business needs and recommend a plan that benefits you the most. Bookkeeping can be done weekly, biweekly, monthly, or quarterly. In addition, these options can offer unique payment plans to function with any budget.

Accurate and Organized Financial Statements

Every business owner needs accurate and organized financial statements. You never know when an opportunity emerges such as a potential partnership or if the IRS is requiring an audit. Therefore, accurate financial record keeping is non-negotiable. Bookkeepers are notorious for maintaining accurate financial statements and organizing them for safe keeping. So, hire one! Also, tax preparation and filing will be easier with a bookkeeper.

Professionalism

The best bookkeepers are noticeably professional and understand they represent your business. They invest in the latest software to maintain your records with high security to avoid confidential breaches. When hiring a bookkeeper, consider their experience, use of software, and training. A professional bookkeeper will not only exceed in maintaining your business finances but they will also provide a sense of security.

Learn More

Framingham Bookkeeper | Hire a professional Framingham bookkeeper today. Call Ash CPA Accounting and Tax Services at (617) 462-6651 or request an appointment online. Our firm offers complimentary consultations. Visit us at 945 Concord Street, Suite 100 Framingham, MA 01701. We proudly serve business owners in Framingham, Wayland, Natick, Southborough, Marlborough, Ashland, Sudbury, and more!

 

bookkeeper Framingham MA

Top 3 Responsibilities of a Bookkeeper

Framingham MA Bookkeeper

Framingham MA Bookkeeper | You’ve most likely heard that a bookkeeper is essential for any business – small or large. But with that said, how do bookkeepers benefit your business? Great question! In general, bookkeepers are trained to maintain business financial records. A bookkeeper’s role could vary between businesses. However, here are the top 3 responsibilities of a bookkeeper.

Framingham MA bookkeeper

Bank Reconciliation

Bank reconciliation involves comparing internal financial records with your business’s bank account statements. In other words, this task allows business owners to identify unusual transactions and avoid fraud. See examples below.

  • Duplicated or altered checks
  • Unauthorized checks
  • Unauthorized bank transfers or withdrawals
  • Missing or incorrect deposits

Bank reconciliation also helps business owners to know exactly how much money is available. For example, there may be checks that have not reflected on the bank account yet. However, your bookkeeper is aware and is able to provide an accurate available balance. Proper bank reconciliation helps avoid the following:

  • Bounced checks
  • Bank fees for having low daily balances, overdrafts, credit transfers, etc.
  • Bank errors

Depending on your business needs, a bookkeeper will suggest if the business should reconcile weekly, bi-weekly, monthly, or quarterly.

 

Accounts Receivable and Payable

Accounts receivable is money that a business is expected to receive from a customer who has been provided with a product or service. The bookkeeper is responsible of tracking the account receivable of each customer. This could include creating and delivering invoices, providing statements, collecting and recording payments. On the other hand, accounts payable is the money that your business owes to vendors, utility companies, etc. Your bookkeeper will likely pay and record payments, issue stop-payments, amend purchase orders, and more.

 

Payroll

Payroll responsibilities will depend on your business need. However, bookkeepers have the ability of entering payroll data into an accounting system, process paychecks, and so forth. You may or may not need this service if you already have a payroll company. Nevertheless, you may want to consider having your bookkeeper manage payroll to save money.

 

Learn More

Framingham MA Bookkeeper | Overall, professional bookkeeping should be tailored around your business needs. Learn how bookkeeping will benefit your company today! Call Ash CPA Accounting and Tax Services at (617) 462-6651 or request an appointment online. Our firm offers free consultations and has two convenient locations in Massachusetts. Visit us at 1033 Providence Rd, Suite 4 Whitinsville, MA 01588 or at 945 Concord Street, Suite 100 Framingham, MA 01701.

Bookkeeper Framingham MA

The Differences Between a Business Bookkeeper and Accountant

Bookkeeper Framingham MA

Bookkeeper Framingham MA | Businesses of all sizes need to properly manage their financial records. Although many business owners attempt to maintain their own records, the task can be overwhelming. Hence, the reason why I always recommend to hire a business bookkeeper and accountant. But why both? Well, they serve two important roles that work simultaneously. Learn more below.

Bookkeeper Framingham MA

What is a business bookkeeper and what do they do?

A business bookkeeper actively records your data while organizing it. In essence, bookkeepers enter financial transactions into a journal. This may include sales, expenses, payments, and so forth. In addition, they reconcile bank accounts, manage payroll, compile general ledgers, generate reports and financial statements. Overall, a business bookkeeper handles daily transactions to provide an accurate financial interpretation of the business.

What is an accountant and what do they do?

An accountant uses the information gathered by the bookkeeper to guide your business decisions. In other words, they assist in interpreting the reports and how that information is affected by regulations, industry trends, and more. They are also recommended for preparing and filing business tax returns. Accountants will also guide startup business owners to properly incorporate and set up financial solutions for ultimate success.

When should I consider a business bookkeeper and accountant?

A bookkeeper and accountant should be working alongside your business from the very beginning. This offers the best chance of success and tax saving benefits. Remember, bookkeepers keep your business finances organized and accurate. While, the accountant guides your business decisions based off the information gathered by the bookkeeper.

Learn more today.

Bookkeeper Framingham MA | Ash CPA Accounting and Tax Services offers free consultations. Learn more on how your business will thrive with a bookkeeper and accountant. Call (617) 462-6651 or request an appointment online. Our firm has two convenient locations in Massachusetts. Visit us at 1033 Providence Rd, Suite 4 Whitinsville, MA 01588 or at 945 Concord Street, Suite 100 Framingham, MA 01701.

 

4 Steps to Start Your Business: Business Startup Plan

Business Startup Plan Framingham MA | Whitinsville MA

A business startup plan is essential for success. Your idea has the potential for growth if the most effective plan is executed. Plans allow entrepreneurs to have a more organized outlook and it increases the chance for higher profits. A professional consultation from a CPA is always best. But, definitely consider these 4 steps as you begin to build your business.

Write it out.

Write a business plan that simplifies your idea while maintaining low expenses. A great tip is to test your idea first. You will be able to determine what works and what does not before investing more time and money. Once you have a clearer understanding of how your business will work most efficiently, write the plan.

Your plan is basically an overview and should include the following:

  • Vision: The end result
  • Mission: Reason why the company exists
  • Objective: What are the goals to accomplish the mission and vision?
  • Outline Strategies: What steps will the company partake in to achieve the objectives?
  • Action Plan: Create individual action plans to achieve the objectives. Hint, this section is more specific than the previous one.

What is the budget?

Your budget will be very important. You will need to choose one that is realistic and stay within it. Figure out how much the business will need and add an additional 20% for unexpected expenses. That will provide some wiggle room, just in case. Your budget amount should cover 6 months worth of expenses. This amount allows you to have a steady cash flow while the business begins to generate its own revenue.

Name it and select the best entity.

Choose a business name and entity that increases your profits while minimizing tax obligations. Sounds complicated? Don’t worry. Start by naming the business something unique. Be different than the competition. Next, research different entities like corporation, LLC, and DBA. These entities offer different advantages and disadvantages. I highly recommend hiring a CPA to best guide you. The CPA will determine which entity offers you the best tax saving advantages. In the meantime, learn more about incorporating a business here.

Separate the funds.

Once you have your entity, open a business banking account. Maintain your funds separate to avoid issues with taxes. Mixing personal and business expenses will create havoc during tax season. And similar to the previous step, you will want to hire a CPA to maintain your business financial records. You will have a lot on your plate and handling numbers should be left to a professional. A CPA will also come in handy during tax season. He or she will prepare your business taxes accurately and quickly since the financial records have been professionally maintained all year.

These steps are just the tip of the iceberg for a business startup plan. Contact Ash CPA Accounting and Tax Services to schedule a consultation today. Call (617) 462-6651 or request an appointment online. Our firm will further discuss your business plan and recommend the best options for your success. Ash CPA Accounting and Tax Services has two convenient locations in Massachusetts. Visit the firm at 1033 Providence Rd, Suite 4 Whitinsville, MA 01588 or at 945 Concord Street, Suite 100 Framingham, MA 01701.

Incorporate Business MA | Corporation, LLC, or DBA?

Incorporate Business MA | Corporation, LLC, or DBA?

Incorporate Business MA | Corporation, LLC, DBA may seem complicated for anyone starting a business. They are all great options but for tax savings and asset protection, one may be better. So, which one do you choose? We’ve simplified the differences and highlighted the pros and cons below. Learn more now. Then, contact us to get started.

What is a Corporation?

In general, a corporation is a separate legal entity that owns the business, assets, and property. So, who owns the corporation? Shareholders do. The greatest advantage of having a corporation is that shareholders are not responsible of the business’s debt. Now, how should your corporation be taxed – C corp or S corp?

C Corporation

A C corporation is standard. One of the main differences between a C corp and S corp is the taxation process. A C corp can be affected by double taxation if its income is given to business owners as dividends. The IRS views this as personal income. Therefore, the owners may need to pay individual taxes.

S Corporation

An S corporation reports its profits and losses to the IRS. However, taxes owed are passed down to the owners as an individual tax return.

Another difference between C corps and S corps are ownership restrictions. C corporations do not have a limit of shareholders. Whereas, S corps cannot exceed 100 and the shareholders must be American citizens or residents. S corporations are also limited to one class of stock. Meanwhile, C corporations are allowed to have multiple. Depending on your plans of growth, a C corporation may be a better option.

What is a Limited Liability Corporation (LLC)?

Similar to an S corporation, an LLC’s taxes are paid through the owners. LLCs also offer owners personal limited liability protection. This protects owners from business debts and other related liabilities. More benefits for having an LLC include the following.

  • Distribute profits among owners
  • Little to no ownership limitations
  • Less required paperwork compared to corporations
  • Adding additional owners require a written consent from existing owners

 

What is a Sole Proprietorship/Partnership/DBA?

A sole proprietorship is a business owned by one person. If owned by more people, it is known as a partnership. You may want to choose a fictitious name, or DBA, to conduct business transactions without using your actual name. Another reason to consider the DBA is that most banks require it when opening a business account. Also, many vendors and consumers prefer the DBA before conducting transactions. The benefit of this business type is how easy it is to begin and manage compared to the other options. However, the owner or owners could be held responsible of any business related debt.

Let’s narrow your options today!

Incorporate Business MA | We hope this blog offered insight but there is a lot more to understand about filing your business. Let’s talk. Ash Wasillidas CPA offers business consulting to discover the best options that protect your assets while offering tax saving benefits. Contact Ash CPA Accounting and Tax Services to schedule a consultation today. Call (617) 462-6651 or request an appointment online. Ash CPA Accounting and Tax Services has two convenient locations in Massachusetts. Visit the firm today at 1033 Providence Rd, Suite 4 Whitinsville, MA 01588 or at 945 Concord Street, Suite 100 Framingham, MA 01701.