Top 10 Bookkeeping Questions Asked by Small Business Owners (FAQ)
Charlotte Van Dyck
By: Charlotte Van Dyck
At Team One Accounting, we talk with entrepreneurs and small business owners every day, and we hear a lot of the same questions when it comes to managing business finances. Bookkeeping isn’t always intuitive, especially if your focus is on growing your business, not tracking numbers. That’s why we’ve pulled together this FAQ to help demystify the basics.
Whether you're just starting out or looking to clean up your current system, here are the answers to the most frequently asked questions we hear:
1. What exactly does a bookkeeper do?
A bookkeeper tracks and organizes your business’s financial transactions: everything from income and expenses to payroll, invoices, and bank reconciliations. Our goal is to keep your records clean, accurate, and up to date so you can make informed decisions and stay compliant with tax laws.
2. Do I need a bookkeeper if I have a CPA?
Yes, these roles are different. Bookkeepers maintain the day-to-day financial records, while CPA’s expertise is the tax code. Many small businesses benefit from working with both.
3. When should I hire a bookkeeper?
If you’re spending more time on your books than running your business, or if your records are disorganized, it’s time to bring in help. Even if your business is still small, outsourcing your bookkeeping early can save you time, reduce costly errors, and position you for growth.
4. How often should my books be updated?
Ideally, your books should be updated weekly or monthly. Staying current ensures accurate cash flow tracking, timely bill payments, and clean reporting when tax season rolls around. At Team One Accounting, we offer regular monthly reporting on your business’ financial health.
5. What’s the difference between cash and accrual accounting?
Cash accounting records transactions when money moves in or out. Accrual accounting records income and expenses when they’re earned or incurred, regardless of when cash changes hands. Accrual gives a more accurate long-term view of your finances, but many small businesses start on a cash basis.
6. Can’t I just do my bookkeeping in Excel?
While spreadsheets may work for the very beginning, they’re error-prone and time-consuming. Cloud-based accounting software like QuickBooks Online or Xero is far more efficient. It automates repetitive tasks, syncs with your bank, and generates reports in real time, which Excel can’t do well at scale.
7. What do bookkeepers need from me each month?
We typically need access to your bank and credit card statements, receipts for large or unusual purchases, payroll details, and any updates to your vendors or customers. When we manage your books at Team One Accounting, we make this process simple and efficient, with secure digital access and clear communication.
8. How do I stay audit-ready?
Stay organized, keep receipts and documentation for all business expenses, and reconcile your accounts regularly. Use consistent expense and income categories, avoid mixing personal and business finances, and work with a professional bookkeeper who keeps clean, detailed records behind the scenes.
9. What reports should I be looking at regularly?
The three key reports every business owner should understand are the Profit & Loss Statement, Balance Sheet, and Cash Flow Statement. These tell you how much you’re making, what you own and owe, and how cash is moving through your business. We help our clients read and interpret these reports with confidence.
10. How can Team One Accounting help my business specifically?
We specialize in working with entrepreneurs and small teams (1–100 employees), offering professional bookkeeping that scales with your business. Whether you’re brand new or growing fast, we clean up your books, set up reliable systems, and keep you informed with clear financial data—all with a personal touch from local Orange County, CA & St John’s County, FL bookkeepers.
Still have questions?
Team One Accounting is your local Orange County, CA & St John’s FL bookkeeping service, trusted by business owners who want clear, reliable, and friendly financial support. If you’re ready to take bookkeeping off your plate and feel confident in your numbers, contact us today for a free consultation.
Take Control of Your Business Finances Today!
Don’t let financial challenges slow your business down. Partner with Team One Accounting to simplify your bookkeeping, improve accuracy, and stay on track for success. Contact us now to get started!
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