Bookkeeping Services

[KBTS]

I am trying to expand into providing bookkeeping services and have some questions for those that already do this for clients.

1. Does your service include check writing or do you just enter the information after the fact?

2. Do you process bank deposits or let the client do this?

I can handle the accounting part, but any advice on the process involved would be appreciated.

[Bees Knees]

It all depends on the liability you care to take on. Obviously, writing checks and doing bank deposits puts you at greater liability risk. If payroll taxes are not paid, the IRS could try to get you for the trust fund penalty as a responsible person. But then, you also would have more control to see to it the business meets all of their payroll tax obligations.

You can do everything, but the more you do, the more in bed you get with your client. A compromise might be to make out all the checks but not except responsibility for check signing or bank deposits. Or, buy good insurance and have clear engagement letters in place spelling out your responsibilities ahead of time so that there is no confusion as to what your responsibilities are.

[rosieea]

I am trying to expand into providing bookkeeping services and have some questions for those that already do this for clients.

1. Does your service include check writing or do you just enter the information after the fact?

2. Do you process bank deposits or let the client do this?

I can handle the accounting part, but any advice on the process involved would be appreciated.

I provide write-up services. I do not write the checks or do bank deposits. The client provides me the bank statement, check stubs, sales report, and payroll report. I provide the financial statements (compilation), bank reconciliation, completed payroll tax deposit coupon, completed sales tax return, all quarterly payroll tax returns, W-2s and 1099s.

[geekgirldany]

I do both. I have two companies in which I enter bills, write checks, do payroll, and reconcile bank statement. My other clients are after the fact bookkeeping customers. They bring me their checks stubs, bank statements, and cash receipts. I have started this past year having them all sign bookkeeping letter of engagements. I won't sign checks or take deposits to the bank. They are responsible for signing all forms and checks. It is a liability issue. Although I have Accountants Liab. Insurance... I found out not to mention this to clients. I had one ask me how much it would payout if a error was done on my part, grr.

[veritas]

We use a very good product called Full Contact Accounting from a firm called Dillner's.

They provide us with everything we need including our website.

[Donanita]

I also do after the fact.I will not write checks or make the bank deposits.I received bank statements and receipts and process the payroll and then fax the paystub to the employer for the employees.Liability for check writing and deposits is more than I want.

[Taxman]

For those operating a tax / bookkeeping service by themselves, is it possible to net over $100K per year. Would it be a split of 50% tax and 50% bookkeeping or maybe 60%-40%. I'm looking to go out on my own one day but would like to know if a 1 person shop can earn enough or do you need more professionals in the shop in order to get to $125K or $150K in net income?

[oceanlovin'ea]

Good write-up programs?

Can you suggest some good write up programs? Reasonably priced, especially.

I have heard about PC Write-up. Does anyone know what company has that?

What about the one vertitas mentioned?

Linda F

[rosieea]

For those operating a tax / bookkeeping service by themselves, is it possible to net over $100K per year. Would it be a split of 50% tax and 50% bookkeeping or maybe 60%-40%. I'm looking to go out on my own one day but would like to know if a 1 person shop can earn enough or do you need more professionals in the shop in order to get to $125K or $150K in net income?

My experience as a solo practitioner is that about 20 write-up clients is all I can handle. More than that during tax season would overload my time; there also deadlines to consider, such as payroll tax deposits and sales tax returns. I employ my wife to do data input and printing of financials. If you're looking to net $125K to $150K, I'd say it would be tough without another full-charge bookkeeper or two. Either that or you need to do around $80 to $90K of tax work.

For the firm I once worked for, write-up was its bread & butter, with about 90 monthly clients. But that took 4 folks doing write-up (1 was part-time) and 1 part-time data input person. It is relatively lucrative, but most of the work is compressed into the first half of each month.

[Taxman]

Thanks rosieea

for your reply. I'm trying to gather as much info as I can to see the best way to make a run of it. Do you perform the write-up work on a monthly or quarterly basis?

[rosieea]

for your reply. I'm trying to gather as much info as I can to see the best way to make a run of it. Do you perform the write-up work on a monthly or quarterly basis?

Unless a client has a very low number of transactions per month AND has no payroll or sales tax, I do them monthly. At present, I have no quarterly clients.

[veritas]

Can you suggest some good write up programs? Reasonably priced, especially.

I have heard about PC Write-up. Does anyone know what company has that?

What about the one vertitas mentioned?

Linda F

Call Dillner's at 1-866-235-8075. Ask for George. They have as a whole vast experience with what you are looking for.