Frequently Asked Questions
Bookkeeping FAQs
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Bookkeeping and accounting are often used interchangeably, but they're two different roles:
Bookkeeping is the day-to-day process of recording transactions, reconciling accounts, and keeping your financial records accurate and organized. A bookkeeper handles the ongoing "input" side — categorizing expenses, tracking income, reconciling bank accounts, and producing financial statements.
Accounting takes that recorded data and interprets it — preparing tax returns, providing tax strategy, and offering formal financial analysis and advice. This is typically the role of a CPA (Certified Public Accountant).
Think of it this way: bookkeeping keeps your financial records accurate throughout the year; accounting uses those records to file your taxes and guide bigger financial decisions. Most small businesses need both — a bookkeeper to stay organized month to month, and a CPA to handle tax filing and strategy.
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A bookkeeper handles the ongoing recording and organization of your business's financial activity. That includes categorizing income and expenses, reconciling bank and credit card accounts, tracking accounts payable and receivable, and producing monthly financial statements like your Profit & Loss and Balance Sheet. In short: a bookkeeper makes sure every dollar coming in or going out of your business is recorded accurately and consistently, so your financial picture is always current and reliable.
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For most small businesses, yes — and they serve different purposes. A bookkeeper keeps your financial records accurate and organized throughout the year. A CPA uses those records to file your tax return, provide tax strategy, and offer formal financial or legal guidance. Think of your bookkeeper as the one keeping your numbers clean all year, and your CPA as the one who takes those clean numbers and files your taxes correctly. Skipping the bookkeeping side often means your CPA spends extra time (and cost) cleaning up records before they can even begin your taxes.
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A bookkeeper focuses on accurate, day-to-day financial record-keeping — reconciliation, categorization, and reporting. A Controller or Fractional CFO goes a step further into financial strategy: cash flow forecasting, budgeting, KPI analysis, and high-level business guidance. At Market View Services, we intentionally focus on bookkeeping — even at our most advanced service level — because we believe in doing one thing exceptionally well, rather than stretching into advisory work outside our core expertise. If your business needs forecasting or strategic financial planning, that's a great conversation to have with a Fractional CFO alongside your bookkeeping support.
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No — these are two separate (though related) processes. Bookkeeping is the year-round work of recording and organizing your financial transactions. Tax preparation is the process of using that financial data to file your business's tax return, which is done by a CPA or licensed tax professional. Accurate bookkeeping makes tax time faster, cheaper, and far less stressful — but bookkeeping itself doesn't include filing your taxes.
Top 10 Bookkeeping Questions
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QuickBooks Online is a powerful tool, but it doesn't run itself. Bank feeds still need to be reviewed, transactions still need to be categorized correctly, and accounts still need to be reconciled. A bookkeeper makes sure the software is actually being used correctly — otherwise, "having QuickBooks" and "having accurate books" aren't the same thing.
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Cash-basis accounting records income and expenses when money actually changes hands. Accrual accounting records them when they're earned or incurred, regardless of when payment happens. Cash-basis is simpler and common for smaller businesses; accrual gives a more complete financial picture and is often required as businesses grow.
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Monthly, at minimum. Waiting longer makes errors harder to catch, increases the chance of missing something for tax season, and makes it harder to make informed decisions using current numbers.
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Generally, the IRS recommends keeping financial records for at least 3 years, though some situations call for longer retention. This includes bank statements, receipts, invoices, and payroll records.
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If you paid an independent contractor $600 or more during the year for services, you're generally required to issue a Form 1099-NEC. Rules can vary depending on how the contractor is set up (LLC, sole proprietor, corporation), so it's worth reviewing with your bookkeeper or CPA each year.
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A write-off reduces your taxable income — it doesn't put money back in your pocket. A refund is an actual return of money. Business owners sometimes assume a write-off means the expense was "free," but it only reduces the tax owed on that amount, not the expense itself.
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Revenue alone doesn't tell the full story. Profitability comes from comparing your income against all expenses — including ones that are easy to overlook, like software subscriptions, contractor fees, or bank charges. Accurate, up-to-date books are what make this number trustworthy.
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Common signs it's time: you're spending hours each month on bookkeeping instead of running your business, you're unsure if your numbers are accurate, you're behind on reconciliations, or your business is growing and getting more complex (employees, inventory, multiple accounts).
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Many bookkeepers, including us, can support payroll recording and sales tax filing preparation. It's worth confirming exactly what's included, since payroll and tax compliance carry deadlines and penalties if missed.
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It should be. A qualified bookkeeper uses secure, encrypted platforms and limited-access permissions — not spreadsheets emailed back and forth or shared passwords. If a bookkeeper asks you to share sensitive information insecurely, that's a red flag.