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Do You Do Your Own Books?

 
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Old 02-13-2019, 01:03 PM   #1
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Do You Do Your Own Books?


Do You Do Your Own Books?-needaccountant-lge.jpg

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We arenít saying you arenít capable of handling your own books. Many business owners, including contractors, do so every day. But if youíre in a position where you donít have to and donít want to, then why torture yourself? Spend the extra money and let the pros do it. And then write the expense off your taxes. Donít worry, your accountant will know that. Do You Need an Accountant?
So, do you do your books yourself, or have you hired someone to do them for you? How did you reach that decision?
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Old 02-13-2019, 01:40 PM   #2
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Re: Do You Do Your Own Books?


My mom has always done the books since 1970. Sheís a book keep for a local newspaper so my little business takes no time at all. She also meets with my cpa who has been with me since I took over.

The accountant also meets with the workmanís comp auditor every year. We use a stamper for my signature for checks. Embarrassingly, Iíve never seen a P/L sheet for any year. Iím a simple guy and the numbers in the bank account are the only thing that I care about.


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Old 02-13-2019, 03:05 PM   #3
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Re: Do You Do Your Own Books?


I do all of mine, use Quicken. Just putting the numbers together now to take to my account so he can figure my taxes.
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Old 02-13-2019, 03:40 PM   #4
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Re: Do You Do Your Own Books?


I have a bookkeeper but I don't let her do my taxes. It allows for less mistakes. Imo


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Old 02-13-2019, 04:48 PM   #5
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Re: Do You Do Your Own Books?


I am the bookkeeper, and until 2 years ago, the tax man as well. I like working with numbers, so for me it is actually something I enjoy. The taxes just always seem to be a hassle, so I gave that up after over 20 years of doing them. Last year, I even gave up doing my personal taxes.
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Old 02-13-2019, 05:37 PM   #6
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Re: Do You Do Your Own Books?


I keep my books but I'm not good at it. No longer do my own taxes though.
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Old 02-13-2019, 09:07 PM   #7
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Re: Do You Do Your Own Books?


Bookkeeping yes, taxes and payroll no. Big Quickbooks fan..very detailed item codes and data entry gets you almost limitless reports. Pair that with a good accountant and you are good to go! Send them a backup whenever they need current info.
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Old 02-13-2019, 11:47 PM   #8
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Re: Do You Do Your Own Books?


I match my transactions (sometimes) my bookkeeper downloads my bank into my QB. She has the passwords to my bank accounts. Been doing my books for over 15 years.


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Old 02-13-2019, 11:53 PM   #9
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Re: Do You Do Your Own Books?


i've had the same accountant since 1975.

incredible lady...

i used to some but usually just gave her stuff and she straightened me out...

she had a gal that did payroll when i needed it...
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Old 02-16-2019, 10:00 AM   #10
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Re: Do You Do Your Own Books?


He'll no. Never have never will. More than a full-time job for one person at this point. Happy to pay somebody top in wages to take care of that. LOL

CPA reconciles quarterly. CPA does the taxes and gives advice of distribution

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Old 02-17-2019, 08:25 AM   #11
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Re: Do You Do Your Own Books?


I do everything except my corporate tax return. I reconcile bank accounts (security issue), do payroll, make payroll tax deposits, do state employment returns (TEC), 941's, 940's, etc. I use an online program to do this, I do employees payroll bi-weekly. I close out my books each month, when a house is completed and sales I close it out in my accounting software (CHS). I make journal entries as needed and review P&L and Balance Sheets monthly. I use Percentage of Completion accounting, I do those transactions monthly. Payroll takes me 1 hr every other week, all other accounting takes about an hour a month, so I spend about 3 hours a month on "doing my books".

Learning all of this is the best thing I've ever done, especially in being able to present my spec lenders a good set of financials. I'll never forget something I read in Emma Shinn's Accounting for Builders & Remodelers book, she said the most successful builders are those who "know their numbers".
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Old 02-17-2019, 05:22 PM   #12
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Re: Do You Do Your Own Books?


Books yes, payroll and taxes no. I still use pencil and paper spread sheets, i know i must move up to date but hate the idea of the learning curve and probably need a new PC too. We are a small operation.
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Old 02-17-2019, 06:32 PM   #13
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Re: Do You Do Your Own Books?


Nice. Got your systems nailed down!

I agree on knowing your numbers. David Gerstel said the same thing. I'll have to check out Shinns book

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Originally Posted by AllanE View Post
I do everything except my corporate tax return. I reconcile bank accounts (security issue), do payroll, make payroll tax deposits, do state employment returns (TEC), 941's, 940's, etc. I use an online program to do this, I do employees payroll bi-weekly. I close out my books each month, when a house is completed and sales I close it out in my accounting software (CHS). I make journal entries as needed and review P&L and Balance Sheets monthly. I use Percentage of Completion accounting, I do those transactions monthly. Payroll takes me 1 hr every other week, all other accounting takes about an hour a month, so I spend about 3 hours a month on "doing my books".

Learning all of this is the best thing I've ever done, especially in being able to present my spec lenders a good set of financials. I'll never forget something I read in Emma Shinn's Accounting for Builders & Remodelers book, she said the most successful builders are those who "know their numbers".


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Old 02-19-2019, 06:01 PM   #14
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Re: Do You Do Your Own Books?


Until last year, I paid an accountant to do everything.

When we ran a payroll, it was easy. She just called and told me what to write the checks for, and she took care of everything else.
Then, a few years ago, I made some changes and ended the payroll. I continued having a the accountant do the books. I noticed the bill never changed.
One day my dad asked me, "What do you pay them for, to balance your check book?" He was right. They were doing way less work, for the same money.

Last year I bought Quickbooks and started doing my own books. I'm so glad I did. I feel more connected to my business and it doesn't take much time at all. I took an online college class to help me get started. $99.00. Well worth it, for me.

This year I emailed her my quickbooks and she does the taxes. I'm in no mood to do the taxes. I figure that's her job. I told her, it's her job to make sure everything is right and keep me out of jail.
Quickbooks I can do. Taxes, I can't. Or at least I don't feel like I can.
The way I figure it, she can do the taxes, I'll do the carpentry.
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Old 02-20-2019, 01:48 PM   #15
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Re: Do You Do Your Own Books?


I'm embarrassed to say I still use a notebook and pen. It's been working for quite a while, but I look forward to the day when I can hire someone to take care of that for me, because I've tried to do it through Quickbooks and can't really figure it out...
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Old 02-20-2019, 03:31 PM   #16
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Re: Do You Do Your Own Books?


Nothing to be embarrassed about I still use a paper and pen as well, and I am only 43 so Iím not that old


Speaking of quickbooks i have been thinking about making the jump to it.... do you guys recommend the online version now days? Donít know if I like the fact of a monthly fee as opposed to a one time purchase of the desktop version but i am always on my phone so it would be nice to update stuff on the go


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Old 02-20-2019, 03:46 PM   #17
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Re: Do You Do Your Own Books?


Iíd be lost without my black and white notebooks. 3 per year. I use QB for invoices and the accountant inputs all the payables on her copy. I use joist for all the estimates.


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Old 02-20-2019, 05:44 PM   #18
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Re: Do You Do Your Own Books?


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Originally Posted by Windycity View Post
Nothing to be embarrassed about I still use a paper and pen as well, and I am only 43 so Iím not that old


Speaking of quickbooks i have been thinking about making the jump to it.... do you guys recommend the online version now days? Donít know if I like the fact of a monthly fee as opposed to a one time purchase of the desktop version but i am always on my phone so it would be nice to update stuff on the go


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The one time purchase, isn't really the case. You have to update every 3 years.

I chose the desktop version. I can't remember exactly why, but there was something missing with the online version.

I also use joist for estimates and invoices. The advantage, for me, is being able to look at estimates and invoices on my phone and the fact that you can attach a contract to joist. You have to make it an attachment for quickbooks.

One problem I find with Joist is that you can't have a negative line item. I have several jobs where there are additions and deductions. You have to enter a line item with $0.00 as the deduction and then use the discount line to give the deduction. No matter how much I try to explain it to a customer, they will always question it.
I've talked to Joist about it, more than once. No change. Maybe if enough people mention it, it will happen.
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Old 02-20-2019, 05:45 PM   #19
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Re: Do You Do Your Own Books?


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Originally Posted by Concrete Lady View Post
I'm embarrassed to say I still use a notebook and pen. It's been working for quite a while, but I look forward to the day when I can hire someone to take care of that for me, because I've tried to do it through Quickbooks and can't really figure it out...
I took an online class. $99 well spent. Once you get the hang of it, its really easy and I wish I had started years ago.
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Old 02-20-2019, 07:25 PM   #20
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Re: Do You Do Your Own Books?


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The one time purchase, isn't really the case. You have to update every 3 years.
Depends on how you use it. I have QB Pro 2009, and it still serves my needs.

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