Quick answers
Plain answers to the questions small business owners ask me most.
Getting started
Do I really need a separate business bank account?
Yes. Keeping business and personal money apart makes your books cleaner and your taxes easier. It also helps show your business is a separate entity if you're an LLC.
When is it time to hire a bookkeeper?
When you're behind, when you're avoiding it, or when the hours you spend on it are worth more running your business.
What's the difference between a bookkeeper and a CPA?
Your bookkeeper keeps your records accurate month to month. Your CPA uses those records to file your taxes and plan with you. Good books make your CPA's job faster and cheaper.
What accounting software should I use?
It depends on your size and complexity. QuickBooks Online, Xero, and Wave are all common. Pick one your CPA is comfortable working in.
Receipts and records
How long do I need to keep receipts?
The general IRS guideline is three years from when you file, and longer in some situations. Confirm your specific case with your CPA.
Do I need to keep paper receipts?
Clear digital copies are generally fine. Snap a photo or save the email receipt to your accounting software as you go.
How do I track business mileage?
Log the date, destination, business purpose, and miles for every trip, in an app or a notebook in the truck. Check the current IRS rate, because it can change.
Taxes
Should I be setting money aside for taxes?
Most self-employed people set aside a portion of every payment. Your CPA can tell you the right percentage for you. I keep a separate tax savings account in my own business for exactly this. This is general guidance, not tax advice.
What are quarterly estimated taxes?
If you expect to owe, the IRS expects payments throughout the year rather than all at once in April. The usual due dates fall in April, June, September, and January. Your CPA can confirm whether this applies to you. This is general guidance, not tax advice.
Getting help
I'm months behind. Is it too late?
No. Catching up is common and very fixable. It starts with your bank and credit card statements.
My CPA says my books are a mess. Now what?
Get a cleanup done before tax season, not during it. A rebuilt set of books saves you stress and usually saves your CPA time.
What does working with Kingdom Bookkeeping look like?
We start with a conversation, I review where your books stand today, and then we build a monthly rhythm that fits your business.
Want to talk it through?
Start with a free 30 minute call. Tell me about your business.