|
|
|
|
As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits!
At your discretion, each month or quarter we will do the following things for you:
These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.
Bank Reconciliation
Reconciling your business checking accounts each month allows us to keep your bank accounts, accounting, and tax records up-to-date.
Having us reconcile your account each month makes it possible for you to:
- Identify lost checks, lost deposits and unauthorized wire transactions.
- Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
-
More effectively detect and prevent embezzlement of funds from within your company.
-
Develop accurate information on how your business is doing. You cannot really know unless all accounts are reconciled and properly accounted for on your financial statements.
-
Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
-
Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
-
Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.
Income Statement
An income statement, also known as a profit and loss statement, basically is an itemized list of your revenues by source, from which you subtract all your expenses, listed by category, to arrive at your profit or loss for the period.
An income statement allows you to:
- Track revenues and expenses so that you can determine the operating performance of your business.
- Determine areas of your business which are over-budget or under-budget.
- Identify specific items that include unexpected expenditures. Like phone, fax, mail, or supply expenses.
- Track unusual increases in product returns or unexpected changes in cost of goods sold, either in absolute dollars, or as a percentage of sales.
- Determine your potential income tax liability.
Balance Sheet
A balance sheet identifies the business assets you own, your business liabilities and your personal equity at the close of business on the date shown.
A balance sheet helps you:
- To quickly calculate the financial strength and capabilities of your business.
- Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you need to pursue collection more aggressively to prevent bad debts and improve cash flow.
- Determine if your business is in a position to expand.
- Determine if your business can handle the cash flow normally associated with the financial ebbs and flows of revenues and expenses.
- Determine if you need to take immediate steps to bolster cash reserves.
- Determine if your business has been slowing down payables and missing possible discounts, or whether you should slow down to forestall a possible cash shortage?
Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.
Maintaining a Clean General Ledger
The general ledger is the core of your company's accounting records, also known as your "books." Every transaction flows from your journals and subsidiary ledgers to your general ledger, which in turn forms the basis for all your financial reporting. As such, an erroneous entry anywhere in the system will throw off your books and can result in your making improper decisions.
Having us review your general ledger system each month allows us to look for possible discrepancies, such as double billings or any unrecorded payments, and correct them so your books are always accurate and kept in tip top shape.
Unlimited Consultations
We are always available to spend time with you so you fully understand how to interpret and utilize the financial information we provide. We encourage you to call us whenever you have a question or concern.
|
|
|
