Bookkeeping Q&A (What if I can't reconcile?? +More!)

Summary

Morgan from Fine Points Tapas answers various bookkeeping questions in a casual Q&A session. She discusses when to deny services to clients, dealing with bookkeeping errors, handling client paperwork, and managing accounts payable and receivable. Morgan also covers client setup, duration of client relationships, rate increases, finding clients, and who pays for QuickBooks. She provides practical advice for new bookkeepers, including pricing strategies and networking tips, while encouraging viewers to ask more questions for future videos.

Takeaways

• 😀 Morgan from Fine Points Tapas is hosting a casual Q&A session to address bookkeeping questions from her audience.
• 🚫 Morgan may deny services to potential clients who are too small for bookkeeping needs, prefer not to use QuickBooks, or are not a good fit in terms of work style or ethics.
• 🔍 Morgan emphasizes the importance of reconciling client books meticulously, noting that small discrepancies can indicate larger issues.
• 📚 She prefers not to handle clients' physical paperwork, advocating for digital solutions like QuickBooks Online receipt capture for a paperless approach.
• 💼 Morgan has experience with accounts payable and receivable, offering examples of bill-paying and invoicing in different business contexts.
• 📈 For new clients, Morgan discusses the process of setting up QuickBooks files, including recording opening balances or continuing from existing files.
• 💰 She addresses the topic of rate increases for long-term clients, suggesting transparent communication and providing advance notice.
• 📝 Morgan recommends becoming a QuickBooks Online Accountant for free training and potential client leads through their directory.
• 🤝 She highlights the value of meeting clients in person or via conference calls to build relationships, especially when first starting to work together.
• 💻 Many of Morgan's clients use traditional paper checks, but for those who prefer digital payments, she would use QuickBooks merchant services.
• 📈 Finding clients often comes down to networking and word-of-mouth, with social media being a useful tool for getting one's name out there.
• 💼 Morgan discusses different payment arrangements for QuickBooks subscriptions, including scenarios where the bookkeeper or the client covers the cost.
• 💰 Pricing for bookkeeping services can start at $40 per hour, with recommendations to adjust rates based on experience and location.

Q & A

What is the purpose of the video session conducted by Morgan?

The purpose of the video session is to address bookkeeping questions collected from various sources in a casual format, providing insights and advice to viewers interested in bookkeeping.

Under what circumstances would Morgan consider denying services to a potential client?

Morgan would consider denying services if a client's business is too small to afford a bookkeeper, if they do not want to use QuickBooks, or if there is a fundamental mismatch in working styles or values.

What is Morgan's stance on using QuickBooks for bookkeeping services?

Morgan specializes in using QuickBooks and prefers not to learn multiple programs, allowing for higher efficiency and the ability to charge a premium for her specialized service.

Has Morgan ever encountered a situation where she couldn't reconcile a client's books?

Morgan has not personally encountered a situation where she couldn't reconcile a client's books, as she believes there is always an error to be found, even if it's a small discrepancy.

What is Morgan's view on using the forced reconciliation function in QuickBooks?

Morgan acknowledges the existence of the forced reconciliation function but suggests that it should be used judiciously, as small discrepancies can sometimes indicate larger underlying issues in the books.

How does Morgan handle paperwork with her clients, such as receipts and invoices?

Morgan prefers not to handle physical paperwork and encourages clients to file their own receipts. She also utilizes QuickBooks Online's receipt capture feature for a paperless approach.

What are Morgan's experiences with clients handling their own accounts payable and receivable?

Morgan has worked with clients who handle their own invoicing and bill pay, and she has also taken on these tasks for clients, adapting her services based on their needs and preferences.

How does Morgan approach setting up new clients in QuickBooks?

If a client is new to QuickBooks, Morgan records the opening balance based on their current bank statement. If they already have a QuickBooks file, she reviews and continues from where they left off.

How does Morgan inform her clients about rate increases?

Morgan suggests giving clients fair warning and explaining the reasons for the rate increase, such as increased expenses or additional experience.

What is Morgan's approach to meeting with clients?

Morgan meets with clients in person when possible, especially initially, and uses conference calls for clients in other states to build relationships and understand their businesses.

How does Morgan handle client billing and payment methods?

Some of Morgan's clients use paper checks, while others may use QuickBooks merchant services. She incorporates credit card fees into her pricing structure if necessary.

What are Morgan's strategies for finding new clients?

Morgan relies heavily on word-of-mouth and networking, as well as leveraging social media to inform her network that she is available for bookkeeping services.

Who typically pays for the QuickBooks subscription when working with clients?

The payment for QuickBooks can be handled either by the bookkeeper or the client. Morgan sometimes gets a wholesale deal and covers the cost, which is then included in her fees.

How should a new bookkeeper determine their rates?

Morgan recommends starting at $40 an hour and adjusting based on experience and location. Fixed pricing is also an option, providing predictability for both the bookkeeper and the client.