Frequently Asked Questions

No matter what your business needs are, we will build a custom package that suits your need.

Could I handle some of my accounting tasks internally?

At Prorata Accounting, we believe that business owners should focus on the day-to-day aspects of their business that require their immediate attention, such as paying bills and managing operations. That's why we take care of the monthly accounting and bookkeeping. However, we understand that some business owners prefer to handle the bookkeeping themselves. While we don't necessarily encourage this option, we do allow it, provided that you have a professional bookkeeper on staff. It's important to note that doing your own bookkeeping may do more harm than good if mistakes occur. Therefore, we recommend that you have a qualified professional handle your bookkeeping to ensure accuracy and reliability.

How can poor accounting practices negatively impact my business?

Effective financial management is crucial for the success of any business, regardless of its size. Unfortunately, many small and mid-sized businesses fail to implement adequate accounting practices, which can result in a range of negative consequences, including: Lost revenue due to inaccurate financial reporting Inefficient tax planning leading to higher tax liabilities Missed financial opportunities, such as investments or cost-saving measures Penalties and fines for non-compliance with accounting and tax regulations Business failure due to insolvency or inability to meet financial obligations To avoid these outcomes, it's important to implement sound accounting practices and to seek professional guidance when necessary. If you're currently managing your own accounting, i practises worth considering whether your self-prepared statements meet industry standards and best practices.

How does your firm handle monthly accounting for clients?

Answer: At Prorata Accounting, we have a systematic monthly accounting process that begins with receiving your source documents. Our team of experts then compiles the information and provides you with the following financial statements to help you stay on top of your finances: Monthly profit and loss statements Monthly balance sheets Regular account reconciliation Based on your financial statements, our team offers tailored advice to help you with tax planning and manage your business's financial situation. Additionally, we provide the following services to support your business: Business tax work Sales tax filings With our monthly accounting process, you can have a clear picture of your financial health and make informed decisions for the growth and success of your business."

How does your firm stand out from other monthly accounting services?

What sets us apart from other monthly accounting services is our unwavering commitment to our clients' success. We pride ourselves on providing exceptional customer service by maintaining regular communication with our clients. Our team of experienced accountants offers proactive business advice and tax planning strategies to help you optimize your profits. Unlike other firms that charge by the minute for consultations, we offer our clients unlimited access to our team at no additional cost. We believe in being there for our clients whenever they need us, and we, offer always happy to provide support and guidance. At our firm, we strive to build long-lasting relationships with our clients. We take the time to understand your business and your unique financial needs, so we can provide tailored solutions that help you achieve your goals.

How is monthly accounting different from annual accounting and what benefits does it offer?

If you're solely focused on cost, an annual accounting service might suffice. However, for businesses that want to maximize profits and receive proactive financial guidance, monthly accounting services offer considerably more value. With annual accounting, an accountant only reviews your finances once a year, which means that any advice offered to improve profitability or reduce tax liability comes too late for the past year. In contrast, monthly accounting services provide ongoing support and advice that can have a positive impact on your business. Learn about the benefits of tax planning and projections, which are not offered by annual accountants. It's worth noting that monthly accounting services have the ability to handle personal taxes as well. However, some clients may still prefer to use an annual accountant for their personal tax needs. At Prorata Accounting, we offer personal tax management services for sole proprietorships and separate business and personal entities, and we would be happy to assist you with your tax needs. Please don't hesitate to reach out to us for more information.

Why should I choose an online outsourced accounting over a local accounting firm?

There are various accounting service options available, each with its own set of advantages and disadvantages, and we understand that our services may not be suitable for everyone. It can be challenging to determine which outsourced accounting option is best for your business if you are unfamiliar with the distinctions between them. If you rely on other local vendors to help with your business operations, why not trust a local accounting firm? However, it is important to conduct research before making a decision based on name recognition or the lowest price. Take the time to learn more about the differences between online accounting services and local accounting firms, including customer service, partnership, services provided, pricing, and local expertise. This research will assist you in making an informed decision about which accounting service is best for your business.

When is it the right time to consider switching your accounting solution, and what steps should you take to make the switch?

If you have doubts about your current accounting firm, it might be time to make a change. We understand that this can be daunting, and common fears can hold you back, such as making the wrong decision, being too busy, or feeling embarrassed about the state of your books. However, these fears can disrupt business growth. At Prorata Accounting, we can help you with the necessary steps to change accounting firms, including finding a new firm, informing your current firm, and setting goals with your new firm. Don't let fear hold you back from making a positive change for your business. Trust your instincts and take action.

How is the pricing of monthly accounting determined? What are the factors that affect the cost?

The cost of our monthly accounting services is customized to meet the specific needs of your business. We don't base our pricing on the size of your company, but rather on the complexity of your financial statements and accounting activity. Our team will work closely with you to determine a fixed monthly fee that fits your budget.

How can clients provide the necessary information for you to do your job?

In order to effectively assist you in achieving your business objectives, we will need access to your online accounts and source documents, which can be provided in electronic or hard copy format. Some examples of the documents we may need include: Business bank and credit card statements Sales systems, such as point-of-sale (POS) software Accounting software Inventory records Accounts payable and receivable information Please note that this is not an exhaustive list and we may request additional information as needed to provide comprehensive accounting services