Freelancer here. Been doing my books since 15+ years, a friend-bookkeeper set it up for me and I followed his setup, but have some questions after another bookkeeper frowned at few things:
- Since forever, I am reconciling at months/years ends, not statement date. Works fine for me and things add up. Anything wrong with that (reading a lot of comments here “always statement date”)?
- Two bank accounts, three credit card payment providers. Of course, when being paid via those, the payment providers transfer less to your bank account that what you charged the client.
The way I have been handling that was summing up the fees to payment providers and write a check to them at the end of the month from the receiving bank account. I did not individually reconcile PayPal & Friends or list them as separate accounts. Again, everything adds up perfectly. But what would IRS say in the unlikely case of being audited?
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Author Of this post: /u/Schnuxthepux222