What is a Bookkeeper Responsible For?

 

 

Our bookkeepers at PL Consulting handle many tasks when working with your business. Keep reading to learn more about bookkeeper responsibilities and how we can handle finances for you.

 

Bookkeeper

 

Bookkeepers Main Responsibilities

 

Bookkeepers are responsible for a variety of daily, weekly, monthly, and annual tasks. The following responsibilities are the most common among bookkeepers. All responsibilities break down into these components.

 

  1. Accounts Receivable
  2. Accounts Payable
  3. Bank Reconciliation
  4. Payroll

 

Accounts Receivable

 

Bookkeepers send out invoices to your clients when they perform services or complete product transactions. All information about receiving (or not receiving) payment is kept track of by your bookkeeper.

 

Accounts Payable

 

This responsibility focuses on paying the bills to vendors. Having an improper accounting system setup can deplete your cash flow too soon or cause you to double pay vendors. Bookkeepers monitor bill payments, due dates, and vendor information.

 

Bank Reconciliations

 

Your bookkeeper will consistently go through all your bank and credit card transactions. The main purpose of this is to categorize them, make sure there are no duplicate transactions, and ensure that no suspicious charges occurred. Once they enter everything, bookkeepers reconcile each account against their bank statements to confirm nothing is missing.

 

Payroll

 

Bookkeepers review employees’ work hours, days off, commissions, and garnishments. Once they enter everything, management approves it before processing. Once processed, bookkeepers pay all state and federal liabilities, file quarter-end and year-end reports, and get all new employees properly set up in the system.

 

Bookkeepers vs. Accountants

 

There is a thin line between accountants and bookkeepers nowadays, especially with software that allows business owners to digitally track their finances and accounting on their own. There are still many differences between the two. Some businesses require both, while others just need to hire one of them to help. 

 

In a recent blog post, we answer the question, “What exactly do accountants do?” Read both blog posts to help you determine which one will best suit your business’s needs.

 

Can Bookkeepers Prepare Taxes?

 

Bookkeepers can prepare taxes, but they typically do not. It is best to hire a CPA to complete your taxes for you and your business. Instead, a bookkeeper prepares detailed financial statements, performs audits of public company books, and prepares reports for taxes.

 

Hire a Bookkeeper from PL Consulting

 

Our professionals at PL Consulting and Bookkeeping Plus offer diverse services related to all your financial matters.

 

The benefit of working with PL Consulting is that you do not have to choose between different companies if you need a bookkeeper AND accountant. Our company is proficient in both with a  focus on small to mid-size businesses. We are your go-to resource for bookkeeping and accounting services. 

 

Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client. Your ideas are unique to your business, and we understand that. We help you maintain good records and financial statements.

 

Questions about how our bookkeeping services can help your business? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our accounting professionals.

 

 

 

Frequently Asked Tax Questions

 

We get many tax questions coming our way daily. We do our best to thoroughly answer our clients. Our team compiled some of these questions so you have something to refer to when you need it last minute. Keep reading for answers to these frequently asked tax questions.

 

Is a TIN the same as an EIN?

 

A tax identification number (TIN) is a nine-digit number assigned to businesses by the IRS. Every company in the United States has a tax ID number. 

 

An employer identification number (EIN) is also a nine-digit number issued by the IRS. The IRS uses the EIN to identify taxpayers liable to file business tax returns. You do not need to have employees to get an EIN.

 

So what is the difference between a TIN and EIN? TIN identifies individuals and businesses to ensure tax compliance. You add your TIN in tax returns and other documents that you file with the IRS. An EIN is a type of TIN. It is used when identifying business entities instead of individuals.

 

Is tax evasion a felony?

 

Yes, tax evasion is a serious violation and a felony. Individuals and companies that fail to pay their taxes result in substantial financial penalties and/or criminal charges.

 

If you owe past due money, receive puzzling correspondence from the IRS, or your return has been selected for an audit, we are fully qualified to assist you before the IRS or the Franchise Tax Board. We specialize in collection and appeals representation.

 

What tax bracket am I in?

 

Federal income tax brackets are different for single filers, heads of household, and married people who file jointly and separately. These change from year to year, so it is important to check which one you are in. This article breaks down the tax brackets for 2021.

 

When is tax season?

 

Tax season typically starts on January 1st and ends on April 15th (Tax Day) every year. During this time, individuals, companies, and tax preparers gather information and file for the previous year’s taxes.

 

The upcoming 2021 tax season ends April 15, 2021. You must file your taxes to avoid penalties and fees.

 

How are taxes calculated?

 

The IRS goes through several complex steps to calculate income taxes. The following categories and steps are included when determining your taxes:

  1. Gross income
  2. Adjusted gross income (AGI)
  3. Taxable income
  4. Personal exemptions
  5. Tax brackets
  6. Tax credits

 

If you want further details and explanations on tax calculations, contact us!

 

Tax Questions

 

Hire a Tax Accountant From PL Consulting

 

Our professionals at PL Consulting and Bookkeeping Plus will assist you in tax planning, accounting, tax returns, and more. We ensure you file your taxes on time and accurately. 

 

Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client. Your ideas are unique to your business, and we understand that. We help you maintain good records and financial statements.

 

Do you have tax questions or want to learn about how our tax and accounting services can help your business? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our accounting professionals.

 

 

What Exactly Do Accountants Do?

 

You hear about accountants a lot, especially during tax season. What exactly do accountants do, and why are they important to small business owners?

 

Managing your business finances correctly and efficiently can mean the difference between business success and failure. That is where accountants come in.

 

Where an Accountant Fits Into Your Business

 

Not all business owners are savvy in the accounting field, so they outsource their accounting work to professionals. This gives business owners the chance to focus on building their business without having to figure out the numbers. Professional accountants ensure your finances are being handled properly. They keep track of your financial transactions and make suggestions to help you make as much money as possible.

 

Although professional accountants assist you in managing your business finances, you should not rely on them solely for your financial success. Create a plan and note your financial responsibilities to keep everything in order. Be sure to understand your financial situation so you know what to ask and expect of your professional accountant.

 

Along the way, always follow up to ensure your accountant is providing the best quality services for your business. As your business grows, your accountant should adapt as well.

 

What Exactly Do Accountants Do

 

Accountant Job Responsibilities

 

Accountants deal with the ongoing finances of a business and handle the finances that are already completed and closed out. 

 

The five basic roles of accountants include: 

  • Accounts receivable
  • Accounts payable
  • Payroll
  • Financial controls
  • Financial reporting

 

These reports give businesses an idea of their financial progress and current standing. This helps to analyze the growth of a business and gauge any changes that may need to be made for improvement. Accountants also handle the tax portion of a business, providing tax planning and advice.

 

Is There a Difference Between Accountants and Bookkeepers?

 

Yes, there is a difference between accountants and bookkeepers. Bookkeepers maintain records while accountants translate those records. Accountants interpret the financial data that the bookkeeper documents and compiles the information into financial reports.

 

Hire an Accountant From PL Bookkeeping Plus

 

Our professionals at PL Consulting and Bookkeeping Plus will assist you in tax planning, accounting, tax returns, and more. Check out our list of accounting services

 

Don’t see what you are looking for? We offer diverse services related to business, tax, and financial related matters. If we cannot assist you, we will refer you to the right place. We keep strong relationships with many individuals and firms.

 

We are your go-to resource for bookkeeping and accounting services. Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client. Your ideas are unique to your business, and we understand that. We help you maintain good records and financial statements.

 

Questions about how our accounting services can help your business? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our accounting professionals.

 

Last-Minute Tax Tips

 

Tax day is almost one month away! Keep reading for some last-minute tax tips for last-minute filers.

When is the last day to file taxes?

First, know when to file your taxes to avoid any late fees or penalties. For your 2020 taxes, the last day to file is Thursday, April 15, 2021. If you need more time, you can try to file for a tax extension. This gives you until October 15th to file your tax return. 

 

What tax bracket am I in?

Know which tax bracket you are in when assessing your financial decisions. This is especially beneficial to next year’s tax return, but it still gives you an idea of how much you will need to pay in taxes this year. If you are unsure of which tax bracket you are in, this tax bracket calculator may help you. 

 

Credits and Deductions

Business tax credits are subtracted directly from your taxes, while deductions reduce your taxable income. File for all the deductions and credits possible. Do your research to ensure which ones apply to your business, and have proof of why. 

 

Common deductions for small business owners:

 

Common business tax credits: 

 

Last-Minute Tax Tips

 

Gather Receipts

If you haven’t been collecting your physical and digital receipts from purchases all year, now is the time to get those together. Your receipts are proof of purchases made throughout the year concerning your business. You may write off some of these amounts as deductions, saving you money. 

 

Have a plan of saving receipts for 2021 so that you aren’t in the same situation next year. This keeps you organized, saves you less time gathering items, and reduces your taxable income.

 

Hire a Tax Accountant

If you are struggling to complete your taxes, or just simply don’t want to, PL Consulting is here to help you. Hire our professional tax accounting team to help you file your 2020 taxes. Though this will be a financial investment, it will save you money. We will manage your business taxes this year and plan for upcoming years. 

 

Our professionals at PL Consulting and Bookkeeping Plus will assist you in saving as much money as possible. We are qualified to assist you with any issues relating to the IRS, relocation, or out-of-state taxes.

 

We are your go-to resource for bookkeeping and accounting services. Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client and help you maintain good records and financial statements.

 

Questions about filing for taxes last minute? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our professionals.