Ask a CPA: 10 Small Business Accounting Questions Answered

Small business owners make financial decisions every day, but many accounting questions do not come with simple answers. When should you hire a bookkeeper? What is the difference between bookkeeping and accounting? How often should accounts be reconciled? And what should you have ready before tax season?

Roper Accounting Services is a CPA-led, Georgia-based accounting firm serving small and mid-sized businesses. Below are answers to common questions business owners ask about bookkeeping, payroll, financial reporting, and tax preparation.

1. When Should a Small Business Hire a Bookkeeper?

A good time to consider professional bookkeeping is when keeping the books consistently updated is taking too much of your time, transactions are piling up, bank balances do not match the accounting records, or financial reports are difficult to trust. Bookkeeping support can also become more valuable as your business adds employees, customers, vendors, accounts, or locations.

2. What Is the Difference Between Bookkeeping and Accounting?

Bookkeeping focuses on maintaining accurate financial records, including categorizing transactions, reconciling bank and credit card accounts, tracking invoices and vendor bills, and keeping the general ledger organized. Accounting uses that financial information to review performance, prepare financial statements, identify issues, support tax preparation, and help business owners understand what the numbers mean.

3. How Often Should My Bank and Credit Card Accounts Be Reconciled?

For most businesses, bank and credit card accounts should be reconciled regularly, with monthly reconciliation being a common standard. Consistent reconciliation helps identify missing transactions, duplicates, incorrect entries, and other differences before they become larger bookkeeping problems.

4. What Financial Reports Should a Small Business Review?

Three important reports are the profit and loss statement, balance sheet, and cash flow information. Together, these reports can help you understand revenue and expenses, what the business owns and owes, and how cash is moving through the company. The reports are most useful when the underlying bookkeeping is accurate and current.

5. How Can I Make Tax Season Easier for My Business?

Keeping your books organized throughout the year can make tax preparation much easier. Reconcile accounts regularly, keep business and personal activity separate, maintain supporting documentation, track income and expenses consistently, and address bookkeeping questions before deadlines approach. Your tax preparer can then work from cleaner and more complete financial information.

6. When Does a Business Need Payroll Support?

Payroll becomes more demanding as you add employees and need to keep track of payroll processing, payroll tax filings, and related records. Professional payroll support can help create a more consistent process and reduce the amount of administrative work the business owner has to manage personally.

7. What Are Accounts Receivable and Accounts Payable?

Accounts receivable is money customers owe your business. Accounts payable is money your business owes vendors and other suppliers. Keeping both organized helps you see unpaid customer invoices, upcoming vendor obligations, past-due balances, and the timing of money coming into and leaving the business.

8. What Is Bookkeeping Cleanup?

Bookkeeping cleanup is the process of correcting and organizing existing accounting records. It may involve reviewing prior periods, fixing account classifications, resolving unreconciled transactions, cleaning up accounts payable and receivable balances, reviewing owner transactions, and improving the accuracy of financial statements.

9. Can an Accountant Help Me Understand Whether My Business Is Profitable?

Yes. Accurate bookkeeping and financial reporting can help you evaluate income, expenses, margins, and trends over time. An accounting professional can also help explain what your reports show so you can make more informed decisions about pricing, spending, hiring, and growth.

10. Do I Need a Local CPA If My Business Operates Online or in Multiple States?

Not necessarily. Many bookkeeping and accounting services can be provided remotely. Roper Accounting Services is based in Georgia and serves clients nationwide, while also supporting businesses in Savannah, Pooler, Port Wentworth, Rincon, and surrounding communities.

Have an Accounting Question? Send It Anytime

Have a bookkeeping, payroll, tax preparation, or accounting question that is not answered here? Use the chat bubble on the Roper Accounting Services website to send your question anytime. For questions that require advice specific to your business or tax situation, a member of our CPA-led team can follow up with you.

You can also explore our accounting and bookkeeping services or request a customized quote to discuss ongoing support for your business.

This article provides general information and is not a substitute for advice based on your specific tax, accounting, or business circumstances.