Small Business Accounting
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. Each month of quarter we will do the following things for you…
· Reconcile your bank account
· Generate income statement
· Generate a balance sheet
· Clean up your general ledger
· Provide unlimited consultations
These tasks form the solid foundation of your small business accounting system. Additionally, you will receive payroll, tax planning, tax preparation, and other services.
Bank Reconciliation-reconciling your business checking account each moth allows us to keep your bank account, accounting, and taxes up-to-date. Having us reconcile your account each month allows you to…
· Identify lost checks, lost deposits and unauthorized wire transactions.
· Detect and prevent excess/unjustified bank charges and ensure transactions are posted correctly by your bank
· Detect and prevent embezzlement of funds from within your company.
· Know how your business is doing. You can’t really know unless all accounts are reconciled and properly accounted for in 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 any unauthorized, fraudulent or forged checks presented to and paid by your 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, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenue and subtracts an itemized list of all your expenses, which results in 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, such as 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.
Balance Sheet-a balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time. A balance sheet helps you to……
· 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.
· 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 the most basic elements in providing financial reporting to potential lenders such as bank, investors, and vendors who are considering how much credit to grand you.
Maintaining a Clean General Ledger-the general ledger is the core of your company’s financial records. These records constitute the central “books” of your system. Since every transaction flow 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 find any discrepancies such as double billings or any unrecorded payments. Then, we’ll fix the discrepancies so your books are always accurate and kept in tip-top shape.
Consultations-we are always available to spend time with you. We want to make sure you fully understand how to interpret and utilize the financial information we provide. For inquiries, please reach out to us.