Small Business Accounting
As a small business owner you have more important things to do than to keep your own books. We can take care of your books for you, so you can get back to the job of running your business and generating profits.
Each month or quarter we can do the following things for you:
- Reconcile your bank account
- Generate an income statement
- Generate a balance sheet
- Clean up your general ledger
- Provide consultations
These tasks form a foundation for your small business accounting system. We can customize the package of services you receive by adding tax planning, tax preparation, or any of our other services.
Reconciling your business checking account each month allow us to keep your bank account, accounting, and taxes up-to-date.
Having us reconcile your account each month helps you to...
- Identify lost checks, lost deposits and unauthorized wire transactions.
- Detect and prevent excess/unjustified bank charges as soon as possible and helps ensures transactions are posted correctly by your bank.
- Detect and minimize the possibility of embezzlement of funds from your company.
- Provide more timely information about how your business is doing... You can't 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 may be able to relieve your agency of responsibility for the shortfall and may be able to transfer the risk to the bank. This reason to reconcile alone should be enough. Unfortunately, crime exists.
- Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all accounts, checks and disbursed funds have been subjected to your review and analysis.
What we do for you......
- Tax Consequences
- Tax Projections
An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a 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 what areas of your business are over-budget or under-budget.
- Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.
- Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
- Determine your income tax liability.
A balance sheet gives you a snapshot view of your business' financial condition at a specific moment in time.
A balance sheet helps you:
- quickly get a handle on 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 can collect your receivables more aggressively
- determine if your business is in a position to expand
- determine if your business can easily handle the normal 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 to forestall an inevitable cash shortage
Balance sheets, along with income statements, are also basic elements in providing financial reporting to lenders, investors, and vendors who are considering how much credit to grant you.
The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.
Having us review your general ledger system each month allows us to look for discrepancies such as double billings or unrecorded payments. Then we'll help you fix the discrepancies so your books are accurate and up to date.
We are 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 when you have a question or concern.