Bookkeeping organizes transactions into financial reports that support pricing, cash planning, tax preparation and lender reviews. Financing decisions remain with the lender. Henriquez Accounting offers bookkeeping services, Controller/CFO support and tax preparation; confirm which reviews and filings are included in your engagement.
Table of Contents
5 Reasons Bookkeeping Matters
- Tax readiness: clean, reconciled books mean accurate returns and fewer surprises.
- Cash control: see where money comes from and where it goes—plan payroll and taxes with confidence.
- Smarter pricing & margins: track costs by job/sku/service to protect profit.
- Financing & insurance: lenders and underwriters want timely, accurate financials.
- Audit trail: proper documentation supports deductions and speeds up responses to notices.
What “Good Books” Look Like
- Bank, credit card, and payment processor reconciled monthly.
- Chart of accounts that’s simple, consistent, and mapped to tax categories.
- Review owner pay, loans, inventory and sales-tax balances for classification errors before finalizing reports.
- Monthly P&L, Balance Sheet, and Cash Flow with notes on variances.
- Digital source docs (receipts, invoices, statements) linked where possible.
The Monthly Close Rhythm
- Post & classify transactions; apply rules for recurring vendors.
- Reconcile bank/credit/merchant accounts; tie loans and inventory.
- Record payroll, benefits, depreciation, and interest.
- Review A/R & A/P aging; send statements and cut AP in batches.
- Publish financials and lock the period.
Owner’s Dashboard: KPIs to Watch
- Gross & operating margin trends
- DSO/DPO (collections vs. payables timing)
- Cash runway and 13-week forecast (if applicable)
- A/R & A/P aging health
- Budget vs. actual with action items
How Bookkeeping Powers Taxes & Financing
- Estimated payments: Reliable records support projections. Required amounts, deadlines and penalty exceptions depend on the taxpayer’s circumstances.
- Clean year-end workpapers for faster return prep and lower cleanup costs.
- Reliable statements for loans, leases, and vendor terms.
DIY vs. Hiring a Pro
- DIY works for very small, simple operations with low volume.
- Hire a pro when revenue is steady, you’re hiring, carrying inventory, or selling in multiple states.
- Best practice: monthly bookkeeping + quarterly tax planning + annual returns.
Common (Costly) Mistakes
- Mixing personal and business spend; missing reconciliations.
- Misclassifying owner draws, loan principal, or inventory/COGS.
- Ignoring sales tax nexus or 1099 requirements.
- Too many/duplicate accounts in the COA—hard to analyze, easy to miscode.
Our Process
- Onboarding: access checklist, COA review, workflow map (AR/AP, payroll, sales tax).
- Monthly close: reconciliations, financials, and variance notes—locked and ready.
- Quarterly: tax projections, vouchers, KPI review, and process tune-ups.
- Annually: 1099s, fixed-asset roll-forward, year-end planning, and return prep.
FAQs
How often should I close my books?
Monthly at minimum; weekly reviews help if volume is high. A monthly close creates timely financials and a clean audit trail.
What’s the difference between bookkeeping and accounting?
Bookkeeping records and organizes transactions; accounting analyzes them for strategy, taxes, and planning. We provide both, sized to your needs.
Which accounting method should I use—cash or accrual?
Cash and accrual methods serve different reporting needs, but the tax method must satisfy applicable eligibility and consistency rules. A method change may require approval. Review business facts with your tax professional rather than choosing solely by size or preference.
What documents do I need to keep?
Bank/credit statements, invoices, receipts, payroll reports, loan docs, and tax filings—stored digitally and linked to transactions when possible.
Related reading: a streamlined bookkeeping workflow.
Can you fix my existing QuickBooks file?
A cleanup review may involve reconciliations, reclassifications and supported prior-period adjustments. Confirm the scope and avoid changing closed periods without considering prior returns and reports. Ongoing review is still needed after cleanup.
Ready to get books you can trust?
Discuss a monthly close and any separate tax planning or filing needs. Agree responsibilities, fees and deadlines in writing. Schedule Consultation