Small-business accounting FAQ
Short answers about this site and the bookkeeping ideas the tools assume. Each one points at a longer page when the short answer is not enough.
About the Desk
Is AI Accounting Desk a CPA firm?
No. It is a static site of educational calculators and guides. It does not prepare returns, represent you, or open a client relationship. The about page and the terms say the same thing in more detail.
Are calculator results safe to file with?
No. Every numeric tool is labeled an estimate. Tax tools cite a 2026 IRS or SSA figure and still omit credits, phaseouts, and state rules that apply to a real return. Verify with a licensed professional and the forms for the year you are filing.
The records
What is the difference between bookkeeping and accounting?
Bookkeeping records what happened to the money. Accounting uses those records to produce statements and to support a return. The basics guide is the record-keeping sequence. Reading the profit and loss and the balance sheet is the next step, still short of a tax position.
What is a chart of accounts?
A numbered list of the buckets you post transactions to: cash, receivables, sales, rent, and the rest. The starter chart is one possible list for a small product and service business, not a required IRS format.
Should a new sole prop use cash or accrual?
This site does not choose for you. Cash records income when you receive it and expenses when you pay them. Accrual records income when you earn it and expenses when you incur them. The comparison is the bookkeeping difference. Which method you may use on a return is an IRS Publication 334 question for you and a preparer.
How often should I reconcile the bank account?
Every month, to a statement date, for each business account and card. The reconciliation guide is the procedure. The month-end checklist makes it a required step instead of a wish.
The 2026 figures the calculators use
Does the mileage calculator use the current IRS rate?
It multiplies business miles you enter by 72.5 cents, the 2026 business standard mileage rate stated in IRS Publication 334. It does not decide that a trip qualifies, and it does not apply the 2025 rate of 70 cents. See the mileage page.
What 2026 Social Security wage base does the site use?
$184,500. That is the 2026 contribution and benefit base published by the Social Security Administration and restated by the IRS. The payroll, paycheck, and self-employment tools all stop the 6.2% or 12.4% Social Security portion at that ceiling. Medicare has no wage base.