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 answerHow many times EBITDA is a dental practice worth?
Dental practices typically sell for 3 to 7 times EBITDA, with most transactions landing between 4 and 6 times. The specific multiple depends on practice size, owner dependency, specialty, and financial record quality.
Read answerDo hairstylists need bookkeepers?
It depends on how you work. W-2 employees at a salon probably don't. But booth renters, suite owners, and salon owners often have more bookkeeping complexity than they realize.
Read answerWhat is the best software for salon bookkeeping?
QuickBooks Online works best for most salons because it integrates with scheduling software and handles tips, booth rentals, and product sales. The software matters less than how it's configured for your specific salon setup.
Read answerShould a hairstylist have an LLC?
It depends on your situation. For established hairstylists with assets to protect or income above $50,000, an LLC often makes sense for liability protection and potential tax savings. For booth renters just starting out, it can wait.
Read answerHow to do bookkeeping for a truck owner-operator?
Owner-operator bookkeeping requires tracking fuel, maintenance, IFTA, per diem, and load revenue separately from personal expenses. The key is capturing everything while on the road and organizing it to show cost-per-mile profitability.
Read answerWhich method of costing is used in the breweries industry?
Breweries typically use process costing because they produce similar products through repetitive production stages. Many craft breweries add batch-level cost tracking to see profitability by individual brew.
Read answerHow do you categorize landscaping expenses?
Separate direct job costs from overhead, capitalize equipment over $2,500, and track vehicle expenses consistently. For landscaping businesses, the key is distinguishing materials tied to specific jobs from general operating supplies so you can see true margins.
Read answerWhat is the most overlooked tax deduction?
Business mileage. It's not complicated or obscure. Business owners just don't track it consistently. At the current standard rate, even moderate driving adds up to thousands in missed deductions.
Read answerDo property management companies need a trust account?
Yes. Missouri requires property managers to hold tenant deposits and owner funds in a separate trust or escrow account. Mixing these with your operating funds creates legal exposure and bookkeeping problems.
Read answerWhat is the best accounting software for auto repair shop?
QuickBooks Online is the standard for auto repair accounting. It works best when integrated with your shop management software and configured to track parts, labor, and sublet revenue separately.
Read answerCan I write off daycare as a business expense?
No. Daycare is a personal expense even if it enables you to work. However, the Child and Dependent Care Credit provides tax relief for qualifying childcare costs on your personal return.
Read answerHow do I organize records for a veterinary practice?
Separate revenue by service type and product sales, track inventory for medications and supplies, and reconcile daily transactions from your practice management software. Structure your chart of accounts to match how the clinic actually operates.
Read answerBest payroll software for small business?
For QuickBooks Online users, QuickBooks Payroll is the best choice because payroll data flows directly into your books. Gusto is the strongest standalone option if you want something independent of your accounting software.
Read answerWhat is the easiest way to do payroll for a small business?
Cloud payroll software that handles tax calculations and filings automatically is the easiest approach for most small businesses. You enter hours, the software does the rest including tax deposits and year-end forms.
Read answerHow much does ADP payroll cost for small businesses?
ADP doesn't publish fixed pricing. You'll need a custom quote. Most small businesses report paying $59-79 per month as a base fee plus $4-6 per employee, but the total depends on which tier and features you choose.
Read answerCan a small business do their own payroll?
Yes, you can run your own payroll legally. The question is whether the time spent on calculations, tax deposits, quarterly filings, and compliance is worth it compared to what payroll services cost.
Read answerHow much does it cost to run payroll through QuickBooks?
QuickBooks Payroll runs between $50-$130 per month base fee plus $6-$10 per employee depending on the plan level. A five-employee business typically pays $80-$180 monthly for the software, though time spent managing payroll adds to the real cost.
Read answerWhat accounting software does ServiceTitan integrate with?
ServiceTitan integrates with QuickBooks Desktop, QuickBooks Online, and Sage Intacct. QuickBooks Online is the most common choice for home services businesses. The integration syncs invoices and payments, but it still requires proper setup and regular oversight.
Read answerCan I link Housecall Pro to QuickBooks?
Yes, Housecall Pro integrates with QuickBooks Online. The connection syncs invoices, payments, and customer data. Setup is straightforward but the mapping decisions you make during setup determine whether your books stay clean or become a mess.
Read answerWhat is the best software to keep track of rental properties?
For most landlords with under ten properties, QuickBooks Online with proper class tracking handles rental accounting well. Larger portfolios benefit from dedicated property management software like Buildium or AppFolio. The software matters less than tracking income and expenses by property consistently.
Read answerDoes Square automatically send sales tax to state?
No. Square calculates and collects sales tax from customers, but it does not file returns or remit payment to the state. That responsibility stays with you.
Read answerWhat accounting software integrates with Square?
QuickBooks Online, Xero, FreshBooks, and Wave all integrate with Square. QuickBooks Online is the most popular choice and handles the integration well when configured properly.
Read answerHow much does a bookkeeper usually charge in Mid-Missouri?
Most bookkeepers in Mid-Missouri charge $200 to $600 monthly for basic small business services. The actual cost depends on transaction volume, industry complexity, and what's included beyond monthly reconciliation.
Read answerHow much should I budget for a bookkeeper?
Small business bookkeeping typically costs $200 to $600 monthly for basic services. The actual price depends on transaction volume, industry complexity, and whether you need additional services like payroll and sales tax filing.
Read answerHow much should an accountant cost for a small business?
Most small businesses pay $200 to $600 monthly for bookkeeping and $300 to $1,500 annually for tax preparation. The total depends on transaction volume, complexity, and whether you need ongoing support or just year-end help.
Read answerIs it worth getting an accountant for a small business?
Most small businesses benefit from regular bookkeeping more than full-time accounting. The practical combination is a bookkeeper handling ongoing work and a CPA for tax preparation and strategic advice.
Read answerWhat is the difference between bookkeeping and accounting?
Bookkeeping is the daily work of recording and organizing transactions. Accounting is interpreting that data for taxes, strategy, and business decisions. Most small businesses need both, but they serve different purposes.
Read answerDo you need an accountant if you use QuickBooks?
QuickBooks organizes your financial data, but it doesn't file taxes or catch errors on its own. You still need an accountant for tax preparation and likely a bookkeeper to keep the data accurate throughout the year.
Read answerCan I do my own bookkeeping?
Yes, you can do your own bookkeeping. Many small business owners handle it themselves. The real question is whether you have the time and discipline to stay consistent with it.
Read answerWhat is the deadline to file taxes in Missouri?
Missouri follows federal tax deadlines. Personal income tax returns are due April 15th. S-corps and partnerships file by March 15th. Extensions are available but only extend the filing deadline, not the payment deadline.
Read answerWhat is the sales tax in Lake Ozark MO?
Lake Ozark sales tax ranges from roughly 8.475% to over 10% depending on your exact location. The city spans two counties and includes special taxing districts, so rates vary even within city limits.
Read answerWhat is the highest sales tax rate in Missouri?
The highest combined rate exceeds 11% in metro areas where multiple taxing districts overlap. For Mid-Missouri businesses, knowing the correct rate for your location matters more than the state maximum.
Read answerAt what age do seniors stop paying property taxes in Missouri?
Missouri doesn't have an age where seniors completely stop paying property taxes. However, the Property Tax Credit program provides relief for seniors 65 and older who meet income requirements.
Read answerDoes my small business need a business license in Boone County, MO?
It depends on where in Boone County you operate. Columbia requires a business license for most commercial activity. Unincorporated Boone County areas don't have a general county license, but state registrations may still apply.
Read answerIs outsourcing payroll a good idea?
For most small businesses, yes. The time savings usually justify the cost, and outsourcing transfers compliance risk away from you. Penalties for payroll mistakes often exceed what a service would have cost.
Read answerHow much should I pay someone to do payroll?
Payroll processing typically costs $40 to $200 per month for small businesses. The price depends on whether you use DIY software, a payroll company, or have a bookkeeper handle it as part of your monthly service.
Read answerIs remote bookkeeper genuine?
Remote bookkeeping is a legitimate and common service model. Cloud accounting software like QuickBooks Online makes it possible for bookkeepers to work on your books in real time from anywhere while you maintain full access and control.
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