Common Questions
Common questions about bookkeeping, accounting, and how we work. Can't find what you need? Contact us.
What does bookkeeping cost for a small business?
Small business bookkeeping typically costs $200 to $600 monthly for basic services. The actual price depends on transaction volume, industry complexity, and which services you need beyond monthly books.
Read answerHow do I set up payroll in Missouri?
Setting up Missouri payroll requires an EIN, state tax registration, withholding setup, and local earnings tax registration for Kansas City or St. Louis employees. Most small businesses use payroll software or outsource it entirely.
Read answerHow to do your own bookkeeping for a small business?
DIY bookkeeping requires weekly consistency more than technical skill. The core tasks are categorizing transactions, reconciling accounts, and generating reports. Most owners fail because they let things pile up, not because the work itself is difficult.
Read answerHow much does a bookkeeper usually charge?
Bookkeepers typically charge $25 to $75 hourly or $200 to $1,500 monthly depending on transaction volume, complexity, and services included. Cleanup work is usually priced separately from ongoing monthly bookkeeping.
Read answerHow many hours a week is bookkeeping for a small business?
Most small businesses need 2 to 5 hours of bookkeeping per week. That number shifts based on transaction volume, whether you have employees, and how consistently the work gets done.
Read answerWhat is considered a full charge bookkeeper?
A full charge bookkeeper handles the complete accounting cycle independently. This includes transaction recording, accounts receivable, accounts payable, payroll, bank reconciliation, and producing monthly financial statements.
Read answerCan a small business do their own bookkeeping?
Yes, many small businesses successfully manage their own bookkeeping. Whether it makes sense depends on your business complexity, available time, and willingness to learn the fundamentals. The key is staying consistent and knowing when the work has outgrown your capacity.
Read answerWhat do I need to process payroll?
You need federal and state employer registrations, completed employee tax forms, a pay schedule, and either payroll software or a service to handle the calculations and tax deposits.
Read answerHow to pay sales tax as a business in Missouri?
Register with the Missouri Department of Revenue, collect the correct state and local rates, then file and pay through the MyTax Missouri portal by your assigned due date.
Read answerDo I have to collect sales tax if I sell online in Missouri?
If your business is located in Missouri and you sell taxable products to Missouri customers, yes. Your physical presence in the state creates the obligation whether sales happen in a store or through your website.
Read answerHow do I register to collect MO sales tax?
Register through the MyTax Missouri portal on the Department of Revenue website. You'll need your EIN, business details, and information about your sales activities to complete the application.
Read answerHow do I create an invoice for my services?
Start with your business information, the customer's details, a clear description of what you did, and the amount owed. Include payment terms, a due date, and instructions for how to pay. Send it right after completing the work.
Read answerHow do 1099 contractors get paid?
You pay contractors the full invoice amount with no taxes withheld. Collect a W-9 before the first payment and track every payment through the year for 1099 reporting.
Read answerHow much can I pay someone without issuing a 1099?
The threshold is $600 per vendor, per year for services. Pay someone less than that and no 1099 is required. Reach $600 or more and you must send a 1099-NEC by January 31.
Read answerIs a bookkeeper different than an accountant?
Yes. Bookkeepers handle the ongoing work of recording transactions, reconciling accounts, and keeping your books current. Accountants handle tax preparation, financial analysis, and strategic advice. Most small businesses need both.
Read answerWhat can a CPA do that a bookkeeper can't?
CPAs can represent you before the IRS during audits, sign off on audited financial statements, and provide attestation services. These are licensed activities that bookkeepers cannot legally perform.
Read answerWhat happens if you don't do bookkeeping?
Problems start small and compound quickly. You lose track of expenses, miss tax deductions, make decisions without knowing your real numbers, and eventually face a costly cleanup when you need accurate books for a loan or tax filing.
Read answerHow to catch up on bookkeeping?
Start by gathering bank and credit card statements for the entire period you're behind. Work through reconciliations month by month, categorizing as you go. The timeline depends on how far behind you are and whether the books were correct before the backlog started.
Read answerWhat is one of the most common bookkeeping mistakes that business owners make?
Letting bookkeeping pile up is the most damaging mistake. When transactions sit for months, no one remembers what they were for. The books become guesswork instead of facts.
Read answerHow many years can a business go without filing taxes?
Technically unlimited. The statute of limitations doesn't start until you file, so there's no point where unfiled returns become safe. The IRS can pursue non-filers indefinitely and penalties compound the longer you wait.
Read answerWhy does my QuickBooks balance not match my bank balance?
Some difference is normal due to timing. Outstanding checks and deposits in transit create temporary gaps between your books and the bank. Persistent mismatches usually come from unrecorded fees, duplicate transactions, or a wrong starting balance.
Read answerHow to fix a reconciliation discrepancy in QuickBooks?
Check the opening balance first, then look for duplicates, wrong dates, and edited transactions. QuickBooks has a reconciliation discrepancy report that shows what changed after previous reconciliations were completed.
Read answerWhat do I do if reconciliation doesn't balance?
Start by checking your opening balance, then look for transposed numbers, duplicates, and missing transactions. Most reconciliation issues come down to a handful of common problems that a systematic review will uncover.
Read answerWhat is it called when you mix business and personal money?
It's called commingling. This happens when you pay business expenses from personal accounts, deposit business income into personal accounts, or use the same credit card for both. It creates legal, tax, and bookkeeping problems.
Read answerWhat is the penalty for late payment of payroll taxes?
The IRS charges 2% to 15% of unpaid payroll taxes depending on how late the deposit is. Interest accrues on top, and business owners can be held personally liable for withheld employee taxes through the Trust Fund Recovery Penalty.
Read answerHow to avoid Missouri underpayment penalty?
Pay quarterly estimated taxes or increase withholding to cover at least 90% of your current year tax or 100% of your prior year tax. Missouri charges penalties when you owe more than $100 at filing and didn't pay enough throughout the year.
Read answerWhat is the IRS rule for receipts for business expenses?
The IRS requires receipts for expenses of $75 or more, except lodging which always needs a receipt. But you still need to document every business expense regardless of amount.
Read answerWhat proof do I need for business expenses?
Keep receipts showing the amount, date, vendor, and what you bought. For meals and travel, also document the business purpose. Bank statements alone won't satisfy the IRS if you're audited.
Read answerDoes your accountant need all your receipts?
Yes, your accountant needs receipts, though the IRS only requires them for expenses over $75. The real value is that receipts provide context that bank statements can't, making your books more accurate and your deductions defensible.
Read answerWhat are the cash flow issues in small businesses?
Cash flow problems usually come down to timing. Money goes out faster than it comes in, creating stress even when the business is profitable on paper. The underlying issue is often lack of visibility into when cash actually moves.
Read answerDo 82% of small businesses fail due to cash flow problems?
That statistic isn't verifiable and likely isn't accurate. Cash flow problems are real challenges for small businesses, but the 82% figure has no credible research behind it. The real issue is understanding what causes cash flow problems and catching them early.
Read answerWhat to do if a customer doesn't pay an invoice?
Follow up immediately when payment is late. Start with a friendly reminder, escalate if needed, and know when to offer payment plans or write off the balance as bad debt.
Read answerHow long is it reasonable to wait for an invoice to be paid?
Net 30 is standard for most businesses, but what's reasonable depends on the terms you set. Following up within a week of the due date and escalating from there helps catch slow payers before they become bad debt.
Read answerWhat is the penalty for paying sales tax late in Missouri?
Missouri charges a 5% penalty on unpaid sales tax the moment you miss the deadline. Interest also accrues from the due date at a rate set by the state, adding to what you owe each month you remain delinquent.
Read answerHow to do bookkeeping for a contractor?
Contractor bookkeeping centers on job costing. Every expense, labor hour, and payment needs to connect to a specific project so you can see which jobs make money and which ones lose.
Read answerIs QuickBooks Online good for general contractors?
Yes, QuickBooks Online works well for general contractors when it's configured for job costing. The software handles project tracking, subcontractor payments, and progress billing effectively with proper setup.
Read answerWhat is job costing for construction companies?
Job costing tracks every expense against a specific project so you know whether that project made money or lost money. Instead of lumping costs into general categories, you assign labor, materials, and subcontractor invoices to individual jobs.
Read answerWhat is the rule of thumb for construction costs?
Labor typically runs 25 to 35 percent of project cost, materials 40 to 50 percent, and net profit should land between 5 and 10 percent. These benchmarks only work if you track actual costs by job and compare them to your estimates.
Read answerDoes a plumber need professional liability?
Most plumbers don't need professional liability insurance. General liability covers the claims plumbers actually face. Professional liability becomes relevant only if you're doing design work or consulting.
Read answerHow to do bookkeeping for real estate investors?
Track each property separately so you can see profitability by investment. Keep rental income, expenses, and security deposits organized by property, and maintain clear records that distinguish repairs from capital improvements.
Read answerWhat is the best accounting software for dental offices?
QuickBooks Online works best for most dental offices. It handles insurance receivables, integrates with practice management systems, and gives you the reporting flexibility dental practices need.
Read answer
