FAQ's
“As your trusted accountants and advisors , we’ll help you navigate all of your financial hurdles. “
Frequently Ask Questions
VIRTUAL BOOKKEEPING
We perform the bookkeeping one of three ways: 1) QuickBooks Online 2) Cloud hosted platform or third party login like Logmein to use QuickBooks Desktop or Enterprise or 3) Locally on our computer and send you back the file when complete.
Dropbox is our preferred, we also use, Google Drive, OneDrive, email. We can conform to any process that makes our clients’ life easier.
Yes, on a schedule to be determined. Monthly, quarterly and annually. We can customize to any schedule that you need.
Our hourly rate may apply depending on the situation.
Our base minimum rates starts at $500/month for the Basic Plan bookkeeping. The frequency of the services performed, the level of activity and the complexity of the account increases the base price. Clean up jobs may be quoted at a flat or hourly rate.
We work with QuickBooks Pro, Premier, Enterprise and QuickBooks Online.
Bill.com, Expensify, Paypal Sync, GotoMeeting, Dropbox, Google Drive, and OneDrive. We can conform to any platform.
Our goal date is the 15th of each month for the prior month closing. Situations that can delay this process are open items, documents and questions that are waiting to be received in order to finish up. If you don’t need reports, you can indicate so in the Form submitting.
Yes! We work with CPA firms all over the United States. We ready the books for your tax people.
ACH, Credit Card on PayPal, and Snail Mail Check. Note that credit cards may carry a convenience fee. Prices quoted are cash prices.
We hire a third party payroll service for your payroll and filing taxes. It is the most cost effective solution for our clients. They are the experts and charge you one low flat fee per month based on how many employees you have. We will enter payroll and reconcile the books to the payroll reports.
If you are a monthly recurring client, payment is due on the 1st of every month. If you have a special clean up project, a retainer is due to begin work and is generally charged on an hourly basis.
We get this alot! The short answer is YES! The long answer is that we need to gather info about your company and needs in order to accurately quote. The level of activity and the services needed differ on every client. This form asks all the right questions and we keep the information on file to refer to later.
We do not give quotes over the phone. Please fill out our Customer Information Form. It asks all the right questions. Accurately quoting is important and we appreciate you filling it out.
We understand how important it is to have trust in the company that you hire to manage your private financial information. The privacy of our customers is the utmost importance to us and we won’t share your information with third parties. Any data that we come in contact with will be held in the strictest confidence.
All employees have been vetted and background checks performed.
Your company data is accessed by your assigned bookkeeper and reviewer/manager only.
All company records are kept under lock and key in a secure server encrypted using 256-bit Advanced Encryption Standard (AES).
All passwords used are strong and unique and we utilize two-step verification whenever possible.
If our agreement ends, we will return all files to you, and/or destroy them.
For accounting files, we use secure third party hosting platforms such as QuickBooks Online or Right Networks.
Using a virtual bookkeeping service offers several benefits for businesses. Here are some key advantages:
Cost-effectiveness: Virtual bookkeeping services are often more affordable compared to hiring an in-house bookkeeper. Businesses can save on employee salaries, benefits, office space, and equipment expenses.
Time savings: By outsourcing bookkeeping tasks to a virtual service, business owners and their staff can focus on core operations and strategic activities, saving time and increasing productivity.
Access to expertise: Virtual bookkeeping services employ professionals who specialize in bookkeeping and accounting. They have the knowledge and experience to handle financial tasks efficiently and accurately, providing expert advice and insights.
Scalability: Virtual bookkeeping services can easily adapt to the changing needs of a business. Whether your company is growing rapidly or experiencing fluctuations, a virtual service can scale up or down accordingly, providing the right level of support.
Enhanced data security: Reputable virtual bookkeeping services prioritize data security and employ robust security measures. They utilize encrypted platforms and follow best practices to protect sensitive financial information, reducing the risk of data breaches or loss.
Access to technology: Virtual bookkeeping services often use advanced accounting software and online tools. By leveraging these technologies, businesses can benefit from automated processes, real-time reporting, and streamlined workflows.
Compliance and accuracy: Virtual bookkeeping services stay up-to-date with changing tax laws and regulations. They ensure accurate bookkeeping, timely tax filings, and adherence to compliance requirements, reducing the risk of penalties or errors.
Collaboration and communication: With virtual bookkeeping services, businesses can easily communicate and collaborate with their bookkeepers remotely. Virtual platforms, emails, and video conferencing enable efficient and seamless interactions.
Business insights: Virtual bookkeeping services can provide businesses with detailed financial reports, analytics, and insights. These valuable metrics help business owners make informed decisions, identify trends, and optimize financial strategies.
Overall, using a virtual bookkeeping service allows businesses to access professional expertise, reduce costs, and focus on core business operations while ensuring accurate financial management and compliance.
To communicate with our virtual bookkeeping team, we provide various channels for efficient and effective communication. Here are the common methods we use:
Email: You can send us emails with your inquiries, requests, or any other information you need to communicate. We typically respond to emails promptly and ensure clear and documented communication.
Phone: We have a dedicated phone line where you can reach our team during business hours. Phone calls are particularly useful for more urgent matters or when a direct conversation is necessary.
Video Conferencing: We offer video conferencing options, such as Zoom or Microsoft Teams, for face-to-face communication. Video calls are beneficial when discussing complex matters, reviewing financial reports, or having detailed consultations.
Messaging Platforms: We may utilize messaging platforms like Slack or Microsoft Teams to facilitate quick and informal communication. These platforms allow for real-time messaging and collaboration, making it convenient for day-to-day queries or updates.
Client Portal: We may provide you with access to a secure client portal where you can securely exchange files, share documents, and access important information related to your bookkeeping and tax services. The client portal ensures a centralized and organized communication channel.
If you decide to cancel your virtual bookkeeping service with us, we have a straightforward process in place. Here’s an overview of what typically happens:
Review your contract: We will first review the terms and conditions outlined in your service agreement or contract. This helps us determine any notice period or cancellation policies that may apply.
Notify us of your intent: You should inform us in writing or through a designated communication channel about your decision to cancel the service. Provide the relevant details, such as your company name, account information, and the effective date of cancellation.
Transition of records: We will guide you on how to transfer any necessary financial records, documents, or information that you need to retain. This may involve exporting data from our bookkeeping software, providing access to files stored on the client portal, or other agreed-upon methods.
Finalize outstanding tasks: We will work with you to ensure that any pending bookkeeping tasks or tax filings are completed before the cancellation takes effect. This includes reconciling accounts, preparing financial reports, and fulfilling any other outstanding obligations.
Settlement of fees: We will assess any outstanding fees or charges based on the agreed-upon terms. This may include a prorated calculation if the cancellation occurs before the end of a billing cycle or contract term.
Termination confirmation: Once the cancellation process is complete, we will provide you with a confirmation of the termination in writing. This will serve as documentation that the service has been successfully canceled.
It’s important to note that the specific cancellation process may vary depending on the terms and conditions outlined in your contract with our virtual bookkeeping service. We encourage you to review your agreement or reach out to our team directly to understand the details and requirements for canceling your service.
The time required to set up our virtual bookkeeping service can vary depending on several factors, including the complexity of your financial situation, the volume of transactions, and the readiness of your existing financial records. Here’s a general overview of the setup process:
Initial consultation: We will begin with an initial consultation to understand your business, financial needs, and specific requirements. This helps us tailor our services to your unique situation.
Gathering information: We will request relevant financial documents and information from you, such as bank statements, invoices, receipts, and previous accounting records. The time required for this step depends on your ability to provide the requested documentation promptly.
Data transfer: If you are transitioning from another bookkeeping system or service, we will work with you to securely transfer the necessary financial data and migrate it to our systems. The time required for data transfer can vary based on the complexity and volume of the data.
Setup of accounting software: We will configure the accounting software that we use for bookkeeping, ensuring it aligns with your business structure, chart of accounts, and reporting preferences. This step may involve customizations specific to your business requirements.
Establishing workflows: We will establish efficient workflows and processes for capturing and recording financial transactions, ensuring smooth operations and accurate bookkeeping. This may include setting up automated systems for bank feeds, invoice processing, and expense tracking.
Training and onboarding: If necessary, we will provide training to you and your team on how to interact with our bookkeeping system, submit documents, and understand the financial reports we generate. This ensures a smooth transition and effective collaboration.
The overall time to set up our virtual bookkeeping service can range from a few days to a few weeks, depending on the complexity and readiness of your financial records. We strive to expedite the setup process while ensuring accuracy and quality. During the initial consultation, we can provide you with a more accurate timeframe based on your specific requirements.
The minimum contract duration for our virtual bookkeeping service may vary depending on the terms and conditions outlined in our service agreement. While we strive to offer flexibility to our clients, it’s common for virtual bookkeeping services to have a minimum contract duration to ensure a reasonable commitment from both parties.
Typically, the minimum contract duration can range from six months to one year. This time frame allows us to establish a working relationship, set up the necessary systems and processes, and provide consistent bookkeeping support to meet your financial needs effectively.
However, it’s important to note that contract durations can be negotiated based on your specific requirements and circumstances. We understand that different businesses have unique needs, and we aim to be flexible to accommodate your preferences whenever possible.
When considering our virtual bookkeeping service, we will provide you with the specific details regarding the minimum contract duration during the initial consultation and contract negotiation phase. This allows you to make an informed decision based on your business requirements and objectives.
TAX PREPARATION
No, you may not file as head of household because you weren’t legally separated from your spouse or considered unmarried at the end of the tax year. To be considered unmarried at the end of a tax year, your spouse may not be a member of your household during the last 6 months of the tax year and you must meet other requirements.
Your filing status for the year will be either married filing separately or married filing jointly.
If you use the married filing separately filing status you can be treated as not married to claim the earned income tax credit. To qualify, the spouse claiming the earned income credit cannot file jointly with the other spouse, and satisfy certain other requirements (for example, not have the same principal residence as the other spouse for at least six months out of the year or have a written separation agreement and do not reside with their spouse at the end of the year), and must have a qualifying child living with them for more than half the year. You cannot claim the credit for childcare expenses since you were considered married. This credit requires married taxpayers to file a joint return to be eligible for the credit.
You may be eligible to claim these credits if you decide to file a joint return with your spouse.
No, only one parent may claim the child as a qualifying child to file as head of household.
To file as head of household you must furnish over one-half of the cost of maintaining the household for you and a qualifying person. Therefore, only one of the parents will have contributed more than one-half of the cost of maintaining the household and be eligible to file as head of household.
If both parents claim the child as a qualifying child, there is a tiebreaker rule to determine which parent may claim the child. See Publication 501, Dependents, Standard Deduction and Filing Information for more information.
Generally, to qualify for head of household filing status, you must have a qualifying child or a dependent. However, a custodial parent may be eligible to claim head of household filing status based on a child even if the custodial parent released a claim to exemption for the child. See Noncustodial parent is claiming our child as a dependent; do I still qualify as head of household?
You may still qualify for head of household filing status even though you aren’t entitled to claim your child as a dependent, if you meet the following requirements:
You’re not married, or you’re considered unmarried on the last day of the year.
You paid more than half of the cost of keeping up a home, that was your home and the main home of your child for more than one-half of the year.
Your child is your qualifying child for purposes other than the dependency exemption and the child tax credit.
See Publication 501, Dependents, Standard Deduction and Filing Information for details.
As a prospective adoptive parent in the process of adopting a U.S. citizen or resident, you’ll need ataxpayer identifying number (TIN) for the child who is being adopted to claim the child as a dependent.If you don’t have and are unable to obtain the child’s social security number (SSN), you should requestan adoption taxpayer identification number (ATIN) or individual taxpayer identification number (ITIN).
An ATIN is available if a child who is a U.S. citizen or resident is lawfully placed in your household forlegal adoption. To obtain an ATIN, use Form W-7A, Application for Taxpayer Identification Numberfor Pending U.S. Adoptions
. For more information, refer to the Instructions for Form W-7A and to Adoption Taxpayer Identification Number
.If the child isn’t a U.S. citizen or resident, and if the child qualifies as a dependent, a TIN is stillrequired. To obtain an ITIN, use Form W-7, Application for IRS Individual Taxpayer IdentificationNumber
. For more information, refer to Individual Taxpayer Identification Number (ITIN)
.Please note that for tax years 2018 through 2025, you may not claim the child tax credit on either youroriginal or an amended return if your child doesn’t have an SSN valid for employment before the duedate of your return (including extensions). If your child has an ATIN or an ITIN, your child may qualifyyou for the credit for other dependents.
You may be eligible to claim both your niece and her son as dependents on your return. In order toclaim someone as your dependent, the person must be:
1. Either your qualifying child or qualifying relative
2. A U.S. citizen, U.S. resident, U.S. national or a resident of Canada or Mexico
3. Unmarried or, if married, not filing a joint return or only filing a joint return to claim a refund ofincome tax withheld or estimated tax paid.
Additionally, you must meet the dependent taxpayer test. If you can be claimed as a dependent byanother person, you can’t claim anyone else as a dependent.
The requirements for a qualifying child and a qualifying relative, as well as additional information regarding these tests, can be found in
Publication 501, Dependents, Standard Deduction and Filing Information
To claim your child as your dependent, your child must meet either the qualifying child test or thequalifying relative test:
To meet the qualifying child test, your child must be younger than you and either younger than 19years old or be a “student” younger than 24 years old as of the end of the calendar year.
There’s no age limit if your child is “permanently and totally disabled” or meets the qualifyingrelative test
.In addition to meeting the qualifying child or qualifying relative test, you can claim that person as a dependent only if these three tests are met:
1. Dependent taxpayer test
2. Citizen or resident test, and
3. Joint return test
No, an individual may be a dependent of only one taxpayer for a tax year. You can claim a child as a dependent if he or she is your qualifying child. Generally, the child is the qualifying child of the custodial parent. The custodial parent is the parent with whom the child lived for the longer period of time during the year.
However, the child will be treated as the qualifying child of the noncustodial parent if the special rule for children of divorced or separated parents (or parents who live apart) applies. See
Publication 504,Divorced or Separated Individuals
for more information. This rule requires in part, that both of the following conditions are met:
The custodial parent signs a
Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent
or a substantially similar statement, and
The noncustodial parent attaches the Form 8332 or a similar statement to his or her return.
If the custodial parent releases a claim to exemption for a child, the noncustodial parent may claim the child as a dependent and as a qualifying child for the child tax credit or credit for other dependents. However, the noncustodial parent may not claim the child for the purpose of claiming head of household filing status, the earned income credit, the credit for child and dependent care expenses, or the exclusion for dependent care benefits.
No, a child may only be claimed as a dependent on one return in a tax year.
For more information on which of you can claim your son, refer to
Whom May I Claim as a Dependent?
Although your husband provided the support, you are considered the custodial parent since your children lived with you for the greater part of the year. You can claim a child as a dependent if he or she is your qualifying child. Generally, a child is the qualifying child of the custodial parent and the custodial parent may claim the child as a dependent.
If certain conditions are met, you may choose to release a claim to exemption for a child by completing
Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent
or by signing a substantially similar statement. If you release a claim to exemption for a child, your husband must attach a copy of the release to his return to claim the child as a dependent.
Note:
If you release a claim to exemption for a child, you may not claim the child tax credit or the credit for other dependents for that child. The noncustodial parent cannot claim the child as a qualifying child for head of household status or the earned income tax credit.
Refer to Publication 501, Dependents, Standard Deduction and Filing Information
or
Publication 504,Divorced or Separated Individuals for more information on the special rule for children of divorced orseparated parents (or parents who live apart).
No and maybe. Child support payments are neither deductible by the payer nor taxable income to therecipient. The payer of child support may be able to claim the child as a dependent:
If the child lived with the payer for the greater part of the year, then the payer is the custodial parent for federal income tax purposes. The custodial parent is generally the parent entitled to claim the child as a dependent under the rules for a qualifying child if the other tests for claiming the child are met.
If the payer is the noncustodial parent, then the payer may only claim the child as a dependent if the special rule for a child of divorced or separated parents (or parents who live apart) applies. That rule requires, in part, that the custodial parent sign and provide the noncustodial parent a Form8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent or asubstantially similar statement. The noncustodial parent must, then, attach a copy of that releaseto his or her return in order to claim the child as a dependent.
Federal tax law is what determines who may claim a child as a dependent on a federal income taxreturn. Even if a state court order allocates the ability to claim the child to a noncustodial parent, thenoncustodial parent must comply with the federal tax law to claim the dependent. The noncustodialparent must attach to his or her return a copy of the release of claim to exemption by the custodialparent, either a
Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent or a substantially similar document.
Refer to Publication 504, Divorced or Separated Individuals for more information on the special rule forchildren of divorced or separated parents (or parents who live apart).
Yes, if your child was born alive during the year and the tests for claiming your child as a dependent aremet, you may claim her as a dependent. You may also be entitled to claim:
The child tax credit (CTC) and/or additional child tax credit (ACTC)
Head of household filing status
The earned income credit (EIC)
For information about taxpayer identification number requirements, see the Instructions for Schedule8812 (Form 1040)
or
My daughter was born at the end of the year. We’re still waiting for a social securitynumber. May I file my return now and provide her social security number later?
Refer to Publication 501, Dependents, Standard Deduction and Filing Information for more information.
Answer:
If you file your return claiming your daughter as a dependent and don’t provide her social security number (SSN) on your return, the IRS will not allow you to claim her as a dependent.
You have two options:
You may file your income tax return without claiming your daughter as a dependent. After you receive her SSN, you may then amend your return on Form 1040-X, Amended U.S. Individual Income Tax Return and claim your daughter as a dependent. Generally, you have three years after the date you filed your original return or two years after the date you paid the tax, whichever is later, to amend your return.
2. The other option is to file a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return . This option would give you an additional six months to file your return; by then you should have your daughter’s SSN. However, any tax owed is due at the filing due date without the extension.
You may also be eligible to claim the earned income credit (EIC) and/or the child tax credit/additional child tax credit (CTC/ACTC). Please note that you may not claim your child as a qualifying child for the EIC on either your original or an amended return if your child doesn’t have an SSN on or before the due date of your return (including extensions), even if your child later gets an SSN. Similarly, you may not claim your child as a qualifying child for the CTC/ACTC if your child doesn’t have an SSN before the due date of your return (including extensions), even if your child later gets an SSN. However, if you have an SSN, but your child does not, you can still claim the EIC if you meet the other requirements for claiming the EIC. In this instance, you would get the EIC allowed to taxpayers without children, which is smaller than the EIC allowed to taxpayers with children. For more information about taxpayer identification number requirements, see the
Instructions for Form 1040 (and Form 1040-SR) and Instructions for Schedule 8812 (Form 1040)
In order to claim a newborn child as a dependent, state or local law must treat the child as having been born alive, and there must be proof of a live birth shown by an official document like a birth certificate. Due to these requirements, you may not claim a stillborn child as a dependent.