Aligned Bookkeeping

11/06/2023

"All progress takes place outside the comfort zone."

-Michael John Bobak

10/05/2023

Quick question: when I say COA (Chart of Accounts) do you know what that is?

It’s ok if you don’t 😉 Even though it’s a (very!) important part of bookkeeping, it’s mostly behind the scenes

📊 It’s the map that routes all your financial information into your financial reports (like your P+L)

👍 When that map is clean and correct, it provides a bird’s eye view of your business, and helps you build profit-making strategies

👎 BUT if the map is messy or wrong, you’ll have duplicate (or missing) transactions, unclear data, and incorrect strategies

Here’s the 5 standard accounts you’ll find in your COA:

(𝟭) 𝗔𝗦𝗦𝗘𝗧𝗦 – Resources your company owns
EX: Land, equipment, trademarks

(𝟮) 𝗟𝗜𝗔𝗕𝗜𝗟𝗜𝗧𝗜𝗘𝗦 – Debts your company owes
EX: Accounts payable, wages payable

(𝟯) 𝗘𝗤𝗨𝗜𝗧𝗬 = Assets - Liabilities
(This is the value of the company to its owner)

(𝟰) 𝗥𝗘𝗩𝗘𝗡𝗨𝗘 – Income your business brings in
EX: Sales of goods, services, rental income

(𝟱) 𝗘𝗫𝗣𝗘𝗡𝗦𝗘𝗦 – Resources spent generating revenue
EX: Utilities, rent payments

These 5 standard accounts will also have subaccounts, unique to each individual business.

You can add and/or edit your subaccounts, BUT here’s a few tips to keep in mind:

✅ Don’t add too many – it’ll make it too hard to see the big picture in the reports
✅ However, make sure you have enough to understand your revenue streams (one big “sales” subaccount won’t show comparisons between your products and/or services)
✅ And have a consistent naming system for the accounts – if not, it can lead to confusing duplicate accounts

By the way, if you want to learn more, I attached a helpful article 👇

https://www.bench.co/blog/accounting/chart-of-accounts

… Or maybe you aren’t the kinda person who says, “Ooo! Chart of Accounts?? Lemme read more about that!!” 🤣

If you’d rather just hand this kinda stuff over to someone else so you don’t have to worry (or learn!) about it – just reach out. I handle this for my clients on a daily basis, and I’d love to help you, too!

Dr. Laura V***a
www.aligned-bookkeeping.com
Schedule a free discovery call: https://calendly.com/aligneddiscoverycall/30min

10/04/2023

"A failure is not always a mistake. It may simply be the best one can do under the circumstances. The real mistake is to stop trying." – B.F. Skinner

10/03/2023

Are you confused on the difference between an accountant and a bookkeeper? You're not alone! Here's a helpful article on some differences between the two.

Bookkeeping vs accounting, the difference isn’t always black and white. Don’t get too hung up on titles and look at services instead.

10/02/2023

Lol, I've got 2 older sisters AND I'm the youngest. This pretty much sums it up. 😆 How about you?

09/28/2023

Someone in the furniture assembly manual writing department has a sense of humor 😆. But they aren't wrong! Get 'er done!!!

09/27/2023

LLC vs S-Corp – which one is best for your business? And – more importantly - 𝙬𝙝𝙮 𝙙𝙤𝙚𝙨 𝙞𝙩 𝙢𝙖𝙩𝙩𝙚𝙧?

Depending on your business size and structure, picking the correct one could lead to either simpler tax filings 🧘‍♀️ or valuable additional oversight with higher tax savings 🤩

First things first, did you know that an LLC and an S-Corp are actually two different things?

📦 An LLC is a 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙚𝙣𝙩𝙞𝙩𝙮 𝙨𝙩𝙧𝙪𝙘𝙩𝙪𝙧𝙚

💵 And an S-Corp is a 𝙩𝙖𝙭 𝙘𝙡𝙖𝙨𝙨𝙞𝙛𝙞𝙘𝙖𝙩𝙞𝙤𝙣

However, both have effects on your business operation and taxation. For example:

📦 💵 They both separate (and protect) the business owner from the business

📦 💵 And both are considered “passthrough” entities – so the tax payment responsibility “passes through” to the owner

However, after that, the differences become more distinct:

𝗟𝗟𝗖: 𝗣𝗿𝗼𝘀 𝗮𝗻𝗱 𝗖𝗼𝗻𝘀

✅ Easy set-up and management, simpler tax filing, and more flexibility in operations and ownership

⛔ Harder to transfer ownership, at a certain income level you’ll pay more on taxes

𝗦-𝗖𝗼𝗿𝗽: 𝗣𝗿𝗼𝘀 𝗮𝗻𝗱 𝗖𝗼𝗻𝘀

✅ Owner’s receive a W-2 salary with taxes withheld, and a chance for higher tax savings

⛔ A LOT more regulations, more complicated tax filings, and more limitations on ownership

Long story short?

There is no one-size-fits all answer ❤️ It depends on how your business operates, and your goals for growing it. But it’s worth taking the time to figure it out.

I’ve attached a super helpful article below 👇 to better help you understand which is best for you!

LLCs and S corporations (S-corps) are often talked about together, but they are not an either-or choice. A limited liability company (LLC) is a legal business structure. An S-corp is a tax classification. You can elect to have your LLC taxed as an S-corp, and many companies choose this option for ta

09/25/2023

🍁🍁🍁Hit me with your fall color pictures! As much as I love Texas, this Wisconsin girl is missing those fall colors! 🍁🍁🍁

09/21/2023

Are you an ostrich 𓅦 when it comes to your business finances?

You might be if any of this sounds familiar 👇

𓅦 You can’t remember the last time you reconciled your business QuickBooks accounts (…but you know it’s been, uh, months)

𓅦 You have no idea what your cash flow looks like…and your records are WAY too out of date to be helpful

𓅦 It’s been AGES since you logged into your business bank account – and just the thought of it makes you sweat bullets

If that sounds like you…then, yup, you’re definitely in full-on head-in-the-sand ostrich mode 𓅦

🐦 Head buried in the sand

🍑 Feathered butt in the air

🦁 And hoping if you can’t see the lions…then…maybe they won’t come??

For what it’s worth – I get it ❤️ I really do.

The longer you procrastinate, the harder it is to start, which makes you procrastinate even more, so then there’s even MORE to catch up, so then it’s even HARDER to start!

It’s a TERRIBLE feeling 💔

And I’m not bringing this up to make you feel bad.

I’m bringing it up because – honestly? I want to help you get your head above ground so you can breathe again.

… And to protect your feathery ostrich butt 🍑 before you get attacked by hungry lions. Lions like:

🦁 Your accountant looking at a mess at the end of the year
🦁 IRS audits and tax fines
🦁 Even the loss of your business (!)

The good news? You don’t have to face the lions alone ❤️ With a little help…you can even avoid them!

All you have to do is pull your head out the sand juuuuuust long enough to ask for help. That’s it! And we can take it from there.

No judgments or shaming, I promise. Nothing but compassionate and stellar bookkeeping help … and protecting your big feathery ostrich butt 🍑 from those lions 😉

You don’t have to be an ostrich 𓅦 paralyzed by procrastination and overwhelm, just waiting for the lions to bite

I help my clients catch up and clean up their records all the time – and I’d love to do the same for you and your business ❤️

Aligned Bookkeeping
www.aligned-bookkeeping.com

Schedule a free discovery call: https://calendly.com/aligneddiscoverycall

281-306-3846 (call or text)

02/17/2023

Let's face it, no matter what tax bracket you're in, those extra napkins come in handy! But the mention of tax brackets this time of year got me thinking about a question a lot of business owners ask: Do I need a bookkeeper if I already have a CPA???

A lot of people think they don't, and I totally get that!

But the truth is, bookkeepers make everything SO MUCH EASIER for you and your CPA at the end of the year.

We can get everything ready for you so at tax time, you just hand over the reports they need to get your business taxes DONE.

This means you could have more time to spend with your family, more time working on your business and replenishing your "car kleenex" instead of worrying about your bookkeeping!

If you're ready to get your time back, call, text or email me. I'm here to help!

Dr. Laura V***a
Aligned Bookkeeping
281-306-3846 (call or text)
[email protected]

So fess up! Who's in your center console or glove compartment? I'll go first...Jimmy John's and Chipotle lol.