Bookkeeping                                                                                      Bots                     ...
Bookkeeping Bots Technical     Documentation  (Version 1.0, Feb 2012)www.bookkeepingbots.comBookkeeping Bots LLC, 91 Hillv...
WHY	  YOU	  NEED	  TO	  KNOW	  RECORD	  KEEPING	  ...........................................................................
B O O K K E E P I N G   B O T S   T E C H N I C A L   D O C U M E N T A T I O N       Why You Need to Know Record Keeping ...
Business Start-Up CostBefore you are in business, chance are you already start spending money. The money youspend on (a) c...
Along with the invoice, you also need to save deposit slip, bank statement, Paypal andother online payment statement.No In...
Types of ExpensesIn general, small business will incur the following types of expense, which will be treatedas ordinary an...
l    Petty cash slips for small cash payment         l    Contract         A good record should meet the following three...
daily basis.                             Business Purpose.)                                                               ...
There are some expenses that even if you keep perfect record, you still cannot deduct, e.g.government penalties. Please ch...
assets (real estate, plant, equipment), prepaid and deferred assets(expenditures for future costs such as insurance, rent,...
Also for each asset, you need to have a document to detail what depreciation method youused and how many has been deprecia...
3) Invoices from your vendor4) An IOU note5) Court ruling6) Legal settlement agreementWorking with Bookkeeping Bots Just s...
What should I do with my records for nontaxpurposes?When your records are no longer needed for tax purposes, do not discar...
User Case   BeforeTony is running a seafood buffet restaurant in New York City. His business isdoing about $700,000 last y...
How do I choose?If your restaurant or other business have less than $5 million revenue, and useQuickbooks 2012, Bookkeeing...
Additional 100 payable or receivable transactionsThe Small Business Bookkeeping Package only covers a total of 100 payable...
Additional Bank Account ReconciliationThe basic service, Small Business Bookkeeping Package, only covers one bankaccount r...
91 Hillview Rd, Westwood,MA 02090, USATEL: 617-642-5620Email: nicolas@bookkeepingbots.com        Bookkeeping Bots LLC, 91 ...
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Record keeping tips for small business & start up

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Record keeping tips for small business & start up

  1. 1. Bookkeeping Bots Record Keeping Tips For Small Business & Start-upBookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620
  2. 2. Bookkeeping Bots Technical Documentation (Version 1.0, Feb 2012)www.bookkeepingbots.comBookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620
  3. 3. WHY  YOU  NEED  TO  KNOW  RECORD  KEEPING  ..........................................................................................................  1  BASIC  ACCOUNTING  CONCEPT  ................................................................................................................................  1  BUSINESS  START-­‐UP  COST  .......................................................................................................................................  2  INCOME  ..................................................................................................................................................................  2   INVOICE  ...........................................................................................................................................................................  2   NO  INVOICES  ....................................................................................................................................................................  3   RECORD  TO  KEEP  ...............................................................................................................................................................  3   WORKING  WITH  BOOKKEEPING  BOTS  ....................................................................................................................................  3  EXPENSE  .................................................................................................................................................................  3   TYPES  OF  EXPENSES  ............................................................................................................................................................  4   RECORD  TO  KEEP  ...............................................................................................................................................................  4   TRAVEL,  ENTERTAINMENT,  GIFT  AND  TRANSPORTATION  .............................................................................................................  5   WORKING  WITH  BOOKKEEPING  BOTS  ....................................................................................................................................  6  ASSET  ......................................................................................................................................................................  7   .................................................................................................................................................................  7   TYPES  OF  ASSET   RECORD  TO  KEEP  ...............................................................................................................................................................  8   WORK  WITH  BOOKKEEPING  BOTS  .........................................................................................................................................  9  LIABILITY  .................................................................................................................................................................  9   TYPES  OF  LIABILITY  .............................................................................................................................................................  9   RECORD  TO  KEEP  ...............................................................................................................................................................  9   WORKING  WITH  BOOKKEEPING  BOTS  ..................................................................................................................................  10  HOW  LONG  TO  KEEP  THE  RECORD  .........................................................................................................................  10   ARE  THE  RECORDS  CONNECTED  TO  ASSETS?  ...........................................................................................................................  10   WHAT  SHOULD  I  DO  WITH  MY  RECORDS  FOR  NONTAX  PURPOSES?  .............................................................................................  11  SOFTWARE  ............................................................................................................................................................  11  BOOKKEEPING  BOTS  .............................................................................................................................................  11   SMALL  BUSINESS  BOOKKEEPING  PACKAGE  ............................................................................................................................  11   USER CASE  .............................................................................................................................................................  12   Before  ................................................................................................................................................................  12   After  ...................................................................................................................................................................  12   PRICE  .....................................................................................................................................................................  12   HOW DO I CHOOSE?  .............................................................................................................................................  13   2ND  CHECK-­‐RUN  PER  MONTH  ...........................................................................................................................................  13   USER CASE  .............................................................................................................................................................  13   PRICE  .....................................................................................................................................................................  13   HOW DO I CHOOSE  ..............................................................................................................................................  13   ADDITIONAL  100  PAYABLE  OR  RECEIVABLE  TRANSACTIONS  .......................................................................................................  14   USER CASE  .............................................................................................................................................................  14   PRICE  .....................................................................................................................................................................  14   HOW DO I CHOOSE  ..............................................................................................................................................  14   ADDITIONAL  BANK  ACCOUNT  RECONCILIATION   ......................................................................................................................  15   USER CASE  .............................................................................................................................................................  15   PRICE  .....................................................................................................................................................................  15   HOW DO I CHOOSE  ..............................................................................................................................................  15  CONTACT  ..............................................................................................................................................................  15   Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 ii
  4. 4. B O O K K E E P I N G B O T S T E C H N I C A L D O C U M E N T A T I O N Why You Need to Know Record Keeping If your firm has more than 20 employees, the chances are 95% of you are using bookkeeper or tax professional to take care of your accounting and tax. Why do you have to know the little record keeping detail as business owner? The answer is simple: You, not your accountant or bookkeeper or other adviser, or software run the business, so you can’t rely on someone else to make decisions critical to your activities. Furthermore, it’s you and your staff, not your bookkeeper, who is responsbile for saving the record when transaction happens. If you don’t save the paper trails of business transactions, no bookkeeper or CPA can help you. Basic Accounting Concept Income Asset Expense Liability All we do in keeping transaction record is to support each transaction in the above four areas, income, expense, asset and liability. By “support” here I mean prove the amount, date, and necessary and ordinary in each transaction. If you have trouble understanding this accounting Equation (Assets - Liabilities = Equity + (Income - Expenses)), feel no shame. Buy an accounting 101 book on Amazon, or you can call Bookkeeping Bots (617-642-5620). We would be happy to answer your question. In the following chapter, we will discuss how we can keep adequate records in the above four areas. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 1
  5. 5. Business Start-Up CostBefore you are in business, chance are you already start spending money. The money youspend on (a) creating an active trade or business; or (b) investigating the creation oracquisition of an active trade or business. Start-up costs include amounts paid or incurredin connection with an existing activity engaged in for profit; and for the production ofincome in anticipation of the activity becoming an active trade or business.When you start a business, treat all eligible costs you incur before you begin operating thebusiness as capital expenditures that are part of your basis in the business. Generally, yourecover costs for particular assets through depreciation deductions.So, you should keep record in the following expenses that are connected to starting yourbusiness:1) Research expenses2) Insurance, license and permit fees3) Equipment and supplies4) Advertising and promotion5) Borrowing costs6) Employee expenses7) Technological expensesThe form of records would be invoice, receipts, car mileage log, bank statement, contract,or canceled check. Please refer to “Expense” chapter for detail.IncomeIncome is the money you receive from your client. What ever your business is, client couldpay you in the following ways:1. Cash2. Credit Card3. Check4. Wire Transfer5. PaypalInvoiceIf your income process requires you to generate invoice, which most of B2B firms do, youneed to save the invoices and give them to your bookkeeper to keep track of your income.The invoice you sent to client is very important. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 2
  6. 6. Along with the invoice, you also need to save deposit slip, bank statement, Paypal andother online payment statement.No InvoicesIf no customer invoices required in your line of business, e.g. restaurant or other retailbusiness, you need to keep cash deposit journal, and bank deposit slip. If you take creditcard payment from customer, the money will automatically deposit in your bank accountin three days.For example: most of the building owners doesn’t actually send tenant invoice. In this case,the received check/cash journal and bank deposit slip are two documents you should keep.Record to KeepHere are possible documents you need to save for income accounting:l Receipt bookl Invoicel Bank deposit slipl Cash register slipl Bank statementl Payment gateway statement, e.g. credit card, or PaypalYour bookkeeper are rely on this these records to do their work, so is your business.Working with Bookkeeping BotsWe will ask you about your business and revenue process. After understanding yourbusiness, we will ask you to provide 1) Bank statement and 2) one other record. Most ofthe time bank statement along is not enough, unless your business is really really simple.All you need to do is scan us bank statement and one other record, e.g. bank deposit slip.ExpenseBusiness expenses are the cost of carrying on a trade or business. These expenses areusually deductible if the business is operated to make a profit.To be deductible, a business expense must be both ordinary and necessary. An ordinaryexpense is one that is common and accepted in your trade or business. A necessaryexpense is one that is helpful and appropriate for your trade or business. An expense doesnot have to be indispensable to be considered necessary.It is important to separate business expenses from the following expenses: u The expenses used to figure the cost of goods sold, u Capital Expenses, and u Personal Expenses. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 3
  7. 7. Types of ExpensesIn general, small business will incur the following types of expense, which will be treatedas ordinary and necessary:l Advertisingl Auto and travel expensel Cleaning and maintenancel Commissionsl Depreciationl Insurancel Interestl Legal and other professional feesl Local transportation expensesl Management feesl Mortgage interest paid to banksl Pointsl Rental paymentsl Repairsl Taxesl Utilitiesl PayrollRecord to Keepl Canceled checksl Cash register tapel Invoicesl Billsl Credit card statementl Account Statement Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 4
  8. 8. l Petty cash slips for small cash payment l Contract A good record should meet the following three criteria to be tax deductible: 1) Substantiate of payment Means you actually paid this amount. 2) Ordinary An ordinary expense is one that is common and accepted in your field of business trade, or profession 3) Necessary A necessary expense is one that is helpful and appropriate for your business, trade, or profession. An expense does not have to be indispensable to be considered necessary. Travel, entertainment, gift and transportation The reason we pay special attention to travel, entertainment, gift and transportation is because IRS has special requirement for record keeping in these expense categories. For detail please refer to IRS Publication 463. It’s a 60 pages comprehensive tax guide. By consulting many CPA and tax professionals, Bookkeeping Bots helps you summarize the record-keeping guide in the following one page table.If you have THEN you must keep records that show details of the following elements:expenses for Amount Time Place or Business Purpose and Description Business RelationshipTravel Cost of each Dates you Destination or area separate expense left and of you travel (name Purpose: Business for travel, lodging returned for of city, town, or purpose for the expense and meals. each trip and other designation) of the business benefit Incidental expenses number of gained or expected to be may be totaled in days spent gained. Relationship: N/A reasonable on business categories such as taxis, daily meals for traveler, etc.Entertainment Cost of each Date of Name and address of Purpose: Business separate expense. entertainmen location of place of purpose for the expense Incidental expense t. (Also see entertainment. Type of the business benefit such as taxis, Business of entertainment if gained or expected to be telephones, etc., Purpose.) not otherwise gained. For entertainment, may be totaled on a apparent. (Also see the nature of the business discussion or activity. If Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 5
  9. 9. daily basis. Business Purpose.) the entertainment was directly before or after a business discussion: the date, place, nature, and duration of the business discussion and the identities of the personsGifts Cost of the Gift Description of the who took part in both the Fair Market Value Date of the Gift business discussion and as of Date of Gift. Gift the entertainment activity. Relationship: Occupations or other information (such as names, titles, or other designations) about the recipients that shows their business relationship to you. For entertainment, you must also prove that you or your employee was present if the entertainment was a business meal.Transportation Cost of each Purpose: Business separate expense. Date of the Your business purpose for the expense. For car expense, expense. For destination. Relationship: N/A the cost of the car car expense, and any the date of improvement, the the use of the date you started car. using it for business, the mileage for each business use and the total miles for the year Working with Bookkeeping Bots If you are not sure your record is adequate, have no worries, Bookkeeping Bots will advice you to keep good record to support your tax deduction. All you need to do is scanning your expense records, e.g. invoice, bill, lease contract, loan statement, petty cash journal every month, and dump those files to Dropbox share folder, we will help you sort through those files, then convert to a full blown financial statement in Quickbooks. Your tax accountant will love you when you give him an impeccable financial statement in Quickbooks with records to support each transaction. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 6
  10. 10. There are some expenses that even if you keep perfect record, you still cannot deduct, e.g.government penalties. Please check with your tax accountant.AssetAnything tangible or intangible that is capable of being owned or controlled to producevalue and that is held to have positive economic value is considered an asset. Simply stated,assets represent ownership of value that can be converted into cash (although cash itself isalso considered an asset) For example, your rental property, machine, and office furnitureare your asset in business.How much your asset worth is very important in accounting, because the amount willdetermine the following depreciation expense, therefore will impact how much income taxyour pay. The value of your asset is called basis in accounting. The basis of asset you buyis usually its cost. The cost is the amount you pay in cash, debt obligations, other property,or services. Your cost also includes amounts you pay for the following items. - Sales tax, - Freight, - Installation and testing, - Excise taxes, - Legal and accounting fees (when they must be capitalized), - Revenue stamps, - Recording fees, and - Real estate taxes (if assumed for the seller).You may also have to capitalize (add to basis) certain other costs related to buying orproducing property.Types of AssetAny item of economic value owned by an individual or corporation, especially thatwhich could be converted to cash. Examples are1) Cash,2) Securities,3) Accounts receivable,4) Inventory,5) Office equipment,6) Real estate,7) A car, and8) Other propertyOn a balance sheet, assets are equal to the sum of liabilities, common stock, preferredstock, and retained earnings. From an accounting perspective, assets are divided intothe following categories: current assets (cash and other liquid items), long-term Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 7
  11. 11. assets (real estate, plant, equipment), prepaid and deferred assets(expenditures for future costs such as insurance, rent, interest), and intangibleassets (trademarks,patents, copyrights, goodwill).Record to KeepIn small business, you want to put your expense into the expense category, not assetcategory, because expense can be deducted fully at current year whereas asset can only berecovered through depreciation in the future year. IRS has very detailed rule aboutclassification, please consult your tax accountant. Either way, you need to keep anadequate record. Your tax accountant will need these documents to establish the basis ofyour asset. Here are some record examples:l Sales contractl Bills & invoicesl Cancelled checkl Appraisall Insurance billIf you are building a real property yourself, here are the documents that are crucial forestablishing the basis:l Land Pricel Labor and materials costl Architect feesl Building permit chargel Payments to contractorsl Payment for rental equipment, andl Inspection feesIf you are using your own employee to build the real property, you also need the followingdocuments to establish the basis of the property:l Employee wages paid for the construction workl Depreciation on equipment you own while it is used in constructionl Operating and maintenance cost for equipment used in the construction; andl The cost of business supplies and materials used in the construction Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 8
  12. 12. Also for each asset, you need to have a document to detail what depreciation method youused and how many has been depreciated already, so that your tax accountant would havefull information to do his work.For example:Property Address: 453 Hancock St, Boston, MA 20122Property class…..: 27 yearsDate placed in service: May 3, 1993Recovery period ……: 27 yearsMACRS system (GDS or ADS): GDSDepreciation rate( from tables): .1429Work with Bookkeeping BotsWe will work with your CPA or our own partner CPA to determine if the expenseshould be capitalized. Luckily, for small business, most of the small purchase can beexpensed safely due to the Section 179 Tax Deduction (www.section179.org). In2012, the first $139,000 new equipment purchase, even if it’s an asset, can be expenseat current year. How sweet is that?LiabilityLiability is the money you own to others. E.g. you borrowed $200k to buy a property, the$200 should appear under your liability column.Types of LiabilityCurrent liabilities are debts payable within one year, while long-term liabilities are debtspayable over a longer period.Most of the liability is established because you enter some kind of business agreement withother party, e.g. you borrowed money from a bank, you take money from client in advance,you own money to your supplier, or you own tax to the government (very expensive moneyto borrow, avoided it all cost).Record to KeepYou can order iPad 2 and paid $600 to Apple before iPad 2 launches next year. The $600 youpaid is the liability to Apple, even if no contract is available. Examples of record for liabilityare:1) Mortgage contract with bank2) Other debt financing agreement with 3rd party Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 9
  13. 13. 3) Invoices from your vendor4) An IOU note5) Court ruling6) Legal settlement agreementWorking with Bookkeeping Bots Just scan us the contract and paper records in the above category, we will help youestablish the correct liability in the Quickbooks.How long to keep the recordThe short answer is it depends. The length of time you should keep a document dependson the action, expense, or event the document records. Generally, you must keep yourrecords that support an item of income or deductions on a tax return until the period oflimitations for that return runs out.Table 3. Period of Limitations THEN the IF you... period is...1 Owe additional tax and (2), (3), and (4) do not 3 years apply to you2 Do not report income that you should and it is more than 25% of the gross 6 years income shown on your return3 File a fraudulent return No limit4 Do not file a return No limit5 File a claim for credit or refund after you filed The later of 3 years or 2 years after tax was paid. your return6 File a claim for a loss from 7 years worthless securitiesAre the records connected to assets?Keep records relating to property until the period of limitations expires for the year inwhich you dispose of the property in a taxable disposition. You must keep these records tofigure any depreciation, amortization, or depletion deduction and to figure the gain or losswhen you sell or otherwise dispose of the property.Generally, if you received property in a nontaxable exchange, your basis in that property isthe same as the bases of the property you gave up, increased by any money you paid. Youmust keep the records on the old property, as well as on the new property, until the periodof limitations expires for the year in which you dispose of the new property in a taxabledisposition. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 10
  14. 14. What should I do with my records for nontaxpurposes?When your records are no longer needed for tax purposes, do not discard them until youcheck to see if you have to keep them longer for other purposes. For example, yourinsurance company or creditors may require you to keep them longer than the IRS does.SoftwareBookkeeping Bots would definitely recommend Quickbooks 2012. It doesn’t matter if it’sdesktop version or online version. Because Quickbooks is the de facto standard for smallbusiness accounting. Some tax preparer will give you discount if you submit him aQuickbooks file.Bookkeeping BotsBookkeeping Bots provides low cost, high quality remote bookkeeping service for smallbusiness, starting at $150 per month. Our $150/month package will generally cover smallbusiness with $500k revenue.Small Business Bookkeeping PackageThis is the default bookkeeping service package designed to meet the needs of mostsmall business. This package include:l Total of 100 receivable and payable transactionsl One bank account reconciliationl Input all your company credit card expenses (one credit card) into Quickbooksl All other transactions, e.g.: mortgage, owner withdraw, employee advance, car mileage etc.l One check-run per month.Note: check-run is the day you print and mail all the checks to your vendors for betterefficiency and easier cash management. A business normally maintains a 30-day policy,meaning it pays its vendor in 30 days.What Bookkeeping Bots will do is to make sure all unpaid invoice you scanned to us willbe entered into Quickbooks before the check-run day, so that on that day, you can just useQuickbooks print all the checks and mail them. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 11
  15. 15. User Case BeforeTony is running a seafood buffet restaurant in New York City. His business isdoing about $700,000 last year. Everyday after closed, he has to spend 30minutes input invoice into Quickbooks. Each month, he also has to spend awhole afternoon match bank statement and with transactions in Quickbooks,and enter all credit card expenses. His wife is also actively involved in thebusiness to help him do the mailing and filing of records. Year-end, his taxaccount asked him to submit many other records to establish the basis ofdepreciation, which delays his tax filing. AfterWhen adopting Bookkeeping Bots, Tony bought a scanner and printer all-in-one for $200 from Staples, which is also tax deductible, to scan all theexpense, cash deposit receipts, and POS machine records to Dropbox sharefolder. Every month, He also scans his bank account statement and businesscredit card statement.All the scanning will take him in less than 30 seconds a day, then he got animpeccable financial statement in Quickbooks with electronic records filed inchronological order to support each transactions.His wife doesn’t have to work for him filing paper records. He can searchthrough all records easily on his computer. Meanwhile, he is still in total ofcontrol of vendor payment.His business tax return can be filed within three days, because BookkeepingBots provides his tax accountant all the necessary information and error freefinancial statement.Price$150 per month that can be terminated anytime*Special risk free trail is available from new referral client. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 12
  16. 16. How do I choose?If your restaurant or other business have less than $5 million revenue, and useQuickbooks 2012, Bookkeeing Bots service is designed for you.We are always there~2nd Check-Run Per MonthSome business needs to print check for vendors or employee bi-weekly. This theservice option for you. With this option, we will make sure all the unpaid invoice youscanned to us two weeks before check-run date, entered to Quickbooks and check isready to be printed on 2nd check-run date.This option doesn’t mean you can only pay somebody on check-run date, although it’sa good cash management practice. When you need to make urgent payment, you cando it anytime, and stamp them invoice “paid”, or scan us other record for this payment.User CaseAndrea is running her newly opened liquor store, due to not enough trackinghistory, her distributor only extend her 15 days for payment, which is calledNet 15 Term. So Andrea has to print and mail check every two weeks.She chose this option because 2nd check-run is just what she needs. Besides, ifonly one vendor demands Net 15 Term, she can also pay this vendor anytimeshe wants without adding this this service option. But if you have many othervendors to pay out at bi-weekly basis, or you used to come to your store twotimes a month to sign checks and do inspection, this option will help youreduce lots of complexity.Price$50 per month, on top of Small Business Bookkeeping PackageHow Do I ChooseIf your currents practice is writing check bi-weekly, you should select this option toallow Bookkeeping Bots fully integrated with your procedure Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 13
  17. 17. Additional 100 payable or receivable transactionsThe Small Business Bookkeeping Package only covers a total of 100 payable orreceivable transactions, which is enough for most of small business. If your businessgenerate more than that amount of transactions, you should select this service options.User CaseJohn Ho runs a successful fresh produce distribution business, serving localrestaurants in Boston area. His business generates over 100 invoices, whosepayment needs to be collected based on different term ranging from oneweek to 30 days.His business has also need to pay 30 suppliers. Due to the higher volume ofhis transaction, John should select this service options.Bookkeeping Bots will not help you collect payments from customer, nor payout your vendors on your behalf, because we prefer to limit on what we dobest, helping you generate impeccable books backed by sufficient transactionrecords.Price$100 for additional 100 payable or receivable transactionsHow Do I ChooseIf you have transactions volume that is higher than 100 receivables and payables, youshould add this service option, because the basic Small Business BookkeepingPackage only cover the first 100 payable and receivable transactions.Typical high transaction volume businesses are distributor, trucking, or propertymanagement, etc. Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 14
  18. 18. Additional Bank Account ReconciliationThe basic service, Small Business Bookkeeping Package, only covers one bankaccount reconciliation. If you have another bank account in your business that needsto be reconciled every month, this is the additional service option you should choose.The reason for reconciliation is to make sure the transactions in your bank accountsmatch transactions in your book. It’s a typical accounting activity and financialcontrol, which is very time consuming if a discrepancy discovered in this process.Luckily, Bookkeeping Bots will help you complete this task for you every month.Any un-reconciled items will be communicated to you directly over email or phone.User CaseJim is the owner of a property management firms. He manages about 50luxury apartments downtown. He has two bank accounts, one for rent paidby tenants, the other for security deposit only. In this way, he can makesclear what is revenue and what is money that should not be kept safe onbehalf of tenant.Both accounts are important to his business, will generate lots oftransactions, and both need to be reconciled every month. To ensure errorfree books and transactions, Jim needs to add this service option on top of hisSmall Business Bookkeeping Package.Price$50 per month, on top of Small Business Bookkeeping PackagesHow Do I ChooseIf you have more than one bank account under your business, which also had sometransactions, and these transactions are also important to you, I highly recommendyou add this service option, just like Jim’s example.ContactBookkeeping Bots LLC Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 15
  19. 19. 91 Hillview Rd, Westwood,MA 02090, USATEL: 617-642-5620Email: nicolas@bookkeepingbots.com Bookkeeping Bots LLC, 91 Hillview Rd, Westwood, MA 02090, USA, Tel: 617-642-5620 16

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