Tax season for small business owners can seem daunting, even terrifying if your books aren’t up to date.
We know that business owners tend to be really good at running their businesses, and not necessarily the best at managing their money. When it comes to the finance stuff, you might need a helping hand to pull all the numbers together.
Can it feel embarrassing to ask for help with outdated books, or lack of bookkeeping at all, from years past? Sure! Especially in a culture that has taught us that it is impolite to discuss money. But when you work with our team there is absolutely no judgment when we take over your bookkeeping or a clean-up job. Trust us, we have seen A LOT. What we have learned with decades of combined experience is that it’s better to start now and get those books in order than let it continue to sit and be an ongoing burden for you.
When the IRS comes to audit you (yes WHEN, not IF!) you need to have your books in order. Once that’s taken care of, it’s an easy process with nothing to hide. Our job is to help you do the right thing.
Let’s put some of your worries at ease and answer your big questions when it comes to working with a bookkeeper during tax prep season.
Does Hill Bookkeeping Prepare Taxes?
We don’t do taxes - but we are step one of the tax preparation process. Our job is to help clients gather all their info, generate the reports, and make sure they’re not walking into their accountants’ offices with shoeboxes full of receipts right before the tax deadline. We help our clients generate financial reports like a profit and loss or cash flow report, balance sheet, as well as collect additional documentation (like 1099s you have issued to contractors), mileage logs, home office expenses, etc.
How Does Working with Hill Bookkeeping Help Small Business Owners Save Money with Their Tax Preparation?
Typically, most CPAs bill on an hourly basis, so if you have all your stuff organized, the cost of preparing your taxes goes down. For example, last year, one of our clients bought a house 10 days after the end of tax season. We emailed her accountant and sent over everything he needed for taxes, and she provided her student loan forms, 1099s from the bank, and her spouse’s W-2. 45 minutes later, their taxes were done! This was due to the extensive preparation the Hill Bookkeeping team put into creating a comprehensive financial picture and communication with her accountant ahead of time. Of course, not everyone’s taxes are so straightforward that they can be completed in 45 minutes - it all depends on your accountant’s workload and the complexity of your financial picture. However, extensive preparation will make the process go faster and allow you to submit your documentation to your accountant earlier in the tax season.
How does Hill Bookkeeping Work with Accountants?
A big part of a bookkeeper’s job is to liaise with their clients’ accountants. As a virtual bookkeeping firm, we use QuickBooks Online, as well as other cloud-based software programs. As soon as we bring on a new client, we schedule a call with the client’s accountant to introduce ourselves and see what we can do to make their job easier. Then, at year-end, we work with the accountant to make sure they have everything they need by first making sure all of our clients’ documents are in order and uploaded into the client’s QuickBooks Online file. Accountants also have access to that file, making it easy for us to transmit data and make edits in real time. Accountants love it because they know all of the business information is handled and organized. We’ve literally had some accountants say, “Oh Hill Bookkeeping has this one? We know we’re good.”
By using the power of technology to tie all the pieces together, tax time becomes easy. We don’t have to go back and forth with a million questions between ourselves and the accountant.
Is Hill Bookkeeping Accepting New Clients for 2021 taxes, or Is It Too Late?
It’s never too late! December-April is when we actually sign on most of our clients. Business owners often come to us in January/February and say, “Okay, it’s 2022. I haven’t done anything with 2021. Help!” We’re doing lots of clean-up jobs this time of year to help new clients get their books together, not just for taxes.
How Does Hill Bookkeeping Assist Clients Beyond Tax Season?
Bookkeepers work year-round to get businesses organized for taxes and to keep their finances in good order so they can apply for loans, grow their businesses, and make better business decisions. Yes, we can help with clean-up, but we really like to support our clients 12 months out of the year in three ways:
- Set up your accounting system so your business can function well on all levels
- Clean-up your existing records so you are in compliance
- Keep you current with ongoing bookkeeping to help you make better business decisions
We also work in a business advisory capacity since we know your business's financial situation inside and out. It’s much easier to make decisions when you know exactly what you’re working with.
If you are ready to get your books in order or if you just have more questions for us - remember, no judgment - we’re here for you. Schedule an intro call with us today.