FAQs

General Business Questions

I want to start a business, what should I do?

Give us a call! We can consult with you and educate you on the different types of business entity as well as many other things such as accounting, employees, tax implication and so much more. We'll guide you into making the right decision for you.

Do I need a business plan?

It depends what business you want to start and what type of financing you will need. Often time small businesses do not necessarily need an elaborate business plan (20-50 pages). However, we highly recommend putting together at least a short 1-3 page business plan. This plan will be the financial foundation of your business. If your business requires a bank loan, you will definitely need a solid business plan.

Do I need an Employer Identification Number (EIN)?

We highly recommended getting an Employer Identification Number (EIN) as soon as you start your business. You most likely will also need a state identification number. Ask yourself:
1. Will I have employees or/and independent contractors?
2. Will I operate my business as a corporation or a partnership?
3. Will I need to file tax return?
4. Will I be involved with Trusts, Estates, real estate, mortgage investment, non-profit organization, cooperatives or employees' plan?
If you answered 'yes' to any of them; you need an EIN.

I'm hiring an employee, what forms need to be filled out?

There are two very important forms that you will need to fill out if you hire an employee. The first one is the Employee's Withholding Allowance Certificate (Form W-4). Your new employee needs to fill it out. Your responsibility if to verify that the Social Security Number on the W-4 form is the same as their actual Social Security card. To ensure that your new employee' social security number is accurate you can always visit www.ssa.gov/employee/ssnv.htm or call the Social Security Administration at 1-800-772-6270. The second form is the Employment Eligibility Verification (Form I-9). It ensures that your company complies with the law and that your new employee is authorized to work. You can do so by making a copy of their driver license or passport, their social security card and their green card if they are eligible to work in the US. Be sure to report new hires to the State of Colorado.

Should I have Independent Contractors or Employees?

It depends on what type of business you operate. Each has its benefits and disadvantages. For example, when you have employees your business will have to withhold and pay Income, Social Security and Medicare taxes. You will also have to pay for unemployment tax on their wages. However, you'll be able control what is being done, when and how it is being executed with employees. LB Bookkeeping and Payroll Services, Inc. can consult with you and help you decide what is the best option for your company.

How much do I need to know about accounting and bookkeeping?

At LB Bookkeeping and Payroll Services, Inc. we understand that your passion may not necessarily be about 'numbers'. You probably have your own reasons for starting your business. With that being said, numbers are the universal language in business and we believe that at a minimum to be successful you need to understand your bookkeeping system. It is very important for business owners to understand some very basic principles such as, how much money is coming in and how it is spent. Reports handling these numbers are balance sheet (assets, liabilities & owner's equity) and your income statement. The income statement is also called Profit and Loss or P&L. Don't let these reports scare you, at LB Bookkeeping Bookkeeping and Payroll Services, Inc. we can help you with all details of bookkeeping so you can do what you enjoy best; running your business!

I have not filed my taxes last year, what should I do?

Don't wait until the IRS contacts you; file your taxes immediately! If you have earned more than the minimum level, you must file a return. It is not too late to get refunds. An accountant or CPA will have to file your delinquent taxes. We can help with all of your financial reports.

My QuickBooks™ is a mess, and was never set up right. Can you help me fix it?

LB Bookkeeping & Payroll Services, Inc. helps businesses in this situation all the time! Your QuickBooks can be fixed or at least a new set of books can be set-up with the accurate information. We find it is sometime easier and more cost effective to start a new set of books with general entries and then add your information. Once your bookkeeping is set up to meet your specific needs, it is up to you to retain our services to maintain your books. We can train you, review your work on an as-needed basis or handle the daily grim of bookkeeping.

My business is not located in Colorado; can you still help me without incurring additional travel costs?

Yes! Don't be fooled by location. Most of our work is done remotely even with our local clients. It is very easy now a day to access your books remotely via the Internet. If we cannot meet in person, we can first get to know each other via email, phone or even Skype. Once, you feel comfortable we can set up QuickBooks on-line for you or you can send us (mail or fax) a spreadsheet of your income and expenses along with your bank statements, credit card statements and your petty cash information.

Do I need to have my books cleaned up before I bring them to LB Bookkeeping & Payroll Services, Inc.?

No, cleaning up books is our specialty! No matter how messed up you think your system of bookkeeping may be, we can help you sort it all out. We'll gladly work with your make shift excel spreadsheets. Give us a call; we've seen it all!

What software do you use?

We are currently certified as QuickBooks ProAdvisor so we are familiar with QuickBooks both the desktop and its online versions for PC and MAC. We can also work with your QuickBooks files utilizing remote log in.

Do I need to have special software to work with you?

At LB Bookkeeping and Payroll Services, Inc. we use Intuit's QuickBooks to organize your financial information. If you wish for us to manage all of your QuickBooks need and daily tasks you do not need to install QuickBooks on your work computer as all reports can be generated in a PDF format. If you wish to manage some or all of your bookkeeping, we suggest downloading QuickBooks by Intuit onto your computer.

What kinds of projects are typically outsourced to LB?

Our clients come from a wide spectrum of industries. We work with restaurants, independent contractor, trades and even small mom and pop. We can manage as much or as little of your bookkeeping as you wish! Some of the work outsourced to us can be day to day accounting, accounts receivables, accounts payable, check printing, payroll, forensic accounting for fraud, and theft. LB Bookkeeping and Payroll Services, Inc. can even do Payroll reporting and deal with issues of the IRS and the State.

Can I outsource only part of my process to LB Bookkeeping and Payroll Services, Inc.?

Certainly! Every client is different. This is why we put together an 'À la cart' menu of services. You can determine what best fit your budget and time allocation. You decide what you want outsourced to LB Bookkeeping and Payroll Services, Inc. and we'll make it work for you whether we do it all or we only handle quarterly payroll filing.

Is my business too small?

No business is too small for bookkeeping. We have found that bookkeepers at larger firms will often not work with smaller businesses when they cannot earn a minimum of $250/month. It is not the case at LB Bookkeeping and Payroll Services, Inc., we believe and understand that small businesses need bookkeepers as well. This is why we have a 'À la Carte' menu. Many of our clients who transferred from elsewhere find that we charge less and offer great quality work.

Bookkeeping Questions:

Why do I need a bookkeeper?

As a business owner you are probably already very busy tackling everything that needs to be done every day. Hiring a bookkeeper saves you time and allows you to go out and grow your business. It allows you to invest your time where it is best spent – working with your customers! As Certified QuickBooks ProAdvisors we are well trained and work very efficiently.

What's the difference between a bookkeeper and my accountant?

A bookkeeper keeps your books in order and handles all of the day-to-day financial transaction of your business. An accountant, help you draw conclusions from your financial reports.

What information needs to be gathered for yearly tax forms?

When organizing your yearly tax, you will need to have accurate reports for your 'Profit & Loss', balance sheets and your payroll.

What services can be performed once LB Bookkeeping and Payroll Services, Inc. has received our file?

We offer many different services such as day-to-day entries, payroll, accounts receivable, accounts payable, check printing and inventory management. You may employ us full time or as needed. Please review our prices for more information.

Payroll Services Questions

What payroll accountant services do you offer?

Our goal is to take the burden of payroll off of our clients' shoulders. We can manage direct deposit or live checks. We can maintain all of your payroll reports and we can even handle your Electronic Funds Transfers (EFTPS) to the IRS and the State of Colorado.

Can LB Bookkeeping & Payroll Services, Inc. print our paychecks and distribute them to our employees?

We can prepare and print all of your paychecks. But we feel it is important that you approve them and distribute them to your employee. Often, employers will set-up direct deposit for their employees, making the process easier. Give us a call to discuss what system best fit your needs.

Can LB Bookkeeping and Payroll Services, Inc. help with processing our payroll tax?

Yes, we can! We call in your payroll taxes (EFTPS each time you do a payroll). We also follow the guidelines the IRS has developed for depositing payroll taxes. But we find that calling in your payroll taxes with each payroll is best for our clients and for them to track it. Once it is filed, you get a conformation number, making it easy to track.

Does LB Bookkeeping and Payroll Services, Inc. prepare the checks for the payroll tax amounts due?

No, we do not write the checks. Instead your business will use an EFTPS for Federal and State taxes. At the end of each quarter, there are checks that need to be written for State Unemployment and any Occupational taxes, we do write those and give them to you to send in with your reports.

Do you provide a checklist for information needed to set up Payroll?

Yes, we can walk you through the payroll set up in QuickBooks. We use a Payroll Setup Checklist provided by QuickBooks and this helps set up your account properly and avoid future problems.

Accounting Questions:

If I have an accountant already, do I also need a bookkeeper?

A bookkeeper allows you to run your business more efficiently by handling the paperwork involved in running your business on a daily basis. At LB Bookkeeping and Payroll Services, Inc. we can handle your invoices, balance your books, record and pay suppliers, even do payroll for your employees. With a clean and organized set of books to present to your accountant you'll provide him with a better set of tools to advise you on matter beyond daily bookkeeping.

Does LB Bookkeeping & Payroll Services, Inc. prepare tax returns?

No, we specialize in day-to-day accounting and bookkeeping operations. We setup everything for your tax accountant to easily and effectively prepare your tax at the end of the year. We do know and work with several great local tax accountants. Give us a call for a great reference!

Why are financial projections necessary?

Financial projections are an essential part of your business plan. They are a roadmap to help you grow your business. If you don't know what your financial situation is, how are you going to know how to forecast for the future?

What is a balance sheet?

A balance sheet shows your company's net worth. It refers to three things about your business: assets, liabilities and the owner's equity. It is important to maintain an accurate balance sheet, as the information will be use for your tax return. A balance sheet is also very handy when you are looking to sell your business.

What is an income statement?

Income statements are also called profit and loss or P & L. Your income statement is the total gross income that you have received through a certain period, usually a month or a year. It shows your revenue (profit) and your expenses (loss).

QuickBooks Training Questions:

Can you help me setup my QuickBooks and show me how to use it so I don't need a bookkeeper on a daily basis?

Definitely!

Can LB Bookkeeping & Payroll Services, Inc. train my new hire on QuickBooks?

Yes

What does it mean to be a QuickBooks Certified ProAdvisor?

It means that Intuit certifies that we are experts in QuickBooks' installation, setup, payroll, reporting and all of its daily functionality. In order to be a QuickBooks Certified ProAdvisor, one must first take a 3-parts QuickBooks Certification course and successfully complete a comprehensive test with a score of 95% or above.