[Question] Bookkeeping Duties

[Canary Admin Services]

@Romaine. Congratulations on your first project! This is where the excitement really begins. As I am based in Spain, I use different software but I'm sure if you go on Quickbook's website, you can upgrade your existing software. Good luck with your new project.

[MsMnVA]

Thanks Sabrina. I haven't used QB's for several years but understand the logistics from previous projects. I think I'll get some training from free resources and then take the exam.

[RhondaHolscher]

Anita, I think you will be fine offering basic bookkeeping. I have both a bookkeeper and an accountant. The only thing I do is enter the invoices, just because of my budget. I anticipate that changing sometime in the near future. I do not like do bookkeeping. My bookkeeper takes care of almost everything else except where an accountant is required. I cannot afford an accountant full time, but a bookkeeper's rates are slightly lower. I love my bookkeeper and she does an excellent job. I also love my accountant and she does an excellent job! I use QB's Online so they both have access to my accounts with no complications, but I understand that you can also do this via remote access using a program such as Log Me In.

You've already stated that you have the skills to certain tasks, and I think that you will find a need for those tasks. The real question is this something that you want to do. As long you have skills and desire to do it then I say go for it.

[bbSquire]

I know it's been quite a while since I posted. I just wanted to touch on something that has blown up in one of my clients faces and I've had to fix.

He had a person come in and enter data into QB for his company. They entered the data...... most of it into accounts where it shouldn't have gone. The invoices were right, only because the owner had done them. The person never questioned if a receipt was personal. They filed furniture under supply expenses, and somehow managed to have him with a petty cash overdrawn by over $7k.

If you are going to offer light or basic bookkeeping, a good rudimentary level of knowledge about the Chart of Accounts and what it contains is a must in my experience. You can buy a simple bookkeeping book from a store. Also you need to know some bits about sales taxes. Like what gets charged and by how much and which agency it goes to. You may need to set that up in the beginning and if it's wrong your client could end owing the government big time.

Yes you can learn to use any accounting software, but learning the software won't ensure you know the rules that regulations that govern how books are kept. If you are entering them to be handed off to an accountant later, you don't want to make a tough job for the accountant, requiring lots of adjusting entries. The less the accountant has to fix the nicer they will think of you.

[CustomVA]

It's interesting to see how this thread emerged again after several months.

bbSquire, I completely agree that unless a person has a basic understanding of bookkeeping, e.g., chart of accounts, debits vs. credits, expenses vs. income, etc., it is best not to offer QuickBooks "data entry" services either. It definitely could lead to a costly mess.

Rhonda, yes, my experience in "keeping the books", stems from having done this for my husband's construction business since 2002. However, I only enter information into the appropriate accounts, cut checks, and print out P&Ls. I hand over all the company's financial information to a bookkeeper twice a year and she works her magic to get things ready for tax time. Since we run as a C-Corporation I would not dare to try to do this all on my own. I have worked with two bookkeepers and one accountant since we started the business and all have complimented me on my thoroughness and accuracy in maintaining our company's QB data.

Last year I did a quick stint as a bookkeeping assistant for a very experienced bookkeeper, and after a few days she too complimented me on my level of knowledge and experience in recognizing where to accurately enter data in QB. In working with her I completely understood the level of the bookkeeping skills I could offer versus the level of bookkeeping skills she offers, the difference is night and day.

I say all this because, although, I am comfortable in my ability to provide "simple" QB bookkeeping tasks, I have chosen not to do so until I gain more knowledge in bookkeeping. Once I complete my degree course work, I will be looking into a bookkeeping course. Because I believe I have a natural knack for this kind of work I think I would be doing myself a disservice if I didn't pursue this. And yes, there is plenty of bookkeeping work out there. Again, the bookkeeper I worked for was swamped and has no problem finding clients, and she makes a very good living.

I hope I helped clear things up and offered some helpful insight.

[MsMnVA]

Some great posts here and I love the insightful tidbits! For several years I worked in the capacity of a CFO so I agree with the importance of having an accounting background if offering QB services. Based on my background, I'll be offering basic and advanced bookkeeping services - but I still want to get QB's certified for endorsement purposes.

[Gail Layh]

I have the same understanding as Kim. Basic is everything up to TB including reconciliations. Full Service includes Financial Reporting, Cashflows, Budget comparisons and preparation for Tax returns. In Australia, anyone can perform bookkeeping services for payment but if you want to do BAS (Business Activity Statements - part of our tax system), you have to have a Cert IV qualification in Financial Services. New regulations came in last year to ensure all BAS agents are qualified. Cheers Gail

[MsMnVA]

Gail, this is interesting. As a lender, I review tons of tax reports and financial statements that are incorrectly prepared by both CPA's, accountants and bookkeepers. So I wouldn't be surprised if we enlist a similair type of requirement here in the U.S.

[Gail Layh]

Hi Romaine, Yes the differences between the US and Oz are quite startling in some cases. We invest in property in both countries so are becoming very aware of the differences in the tax systems and government regulations (state & federal). I first qualified as a bookkeeper with a certificate course way back when books were kept manually. I then went on to complete a Bachelor of Business and a Diploma of Project Management. I have used many financial accounting systems and have been responsible for "the books" in some way in all my jobs. The last 10 years, I have run my own accommodation businesses and done all the books and prepared our BAS statements for the tax department. My accountant completed the actual yearly tax returns. Now that I have started my VA business, my qualifications as a bookkeeper are too far back to enable me to prepare BAS statements for clients. Experience is not sufficient on its own. So, now I'm back at school - gaining my qualification all over again - yuk! But it's good to know we have standards which are enforced throughout the country. Cheers

[tecoleman13]

I am so excited to have found this post. Based on the different posts, I think I am also qualified to offer basic bookkeeping services. I will be taking some tutorials and getting started with a test client ASAP!!