Small Business Accounting
As a small business owner you have more important things to do than to keep track of your own books. We take care of your books for you so you can get back to 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 unlimited consultations
These tasks form the solid foundation of your business's accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation or any of our other services.
Reconciling your business checking account each month 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 to ensure transactions are posted correctly by your bank.
- Detect and prevent embezzlement of funds from within your company.
- Truly know how your business is doing, as all accounts will be reconciled and properly accounted for on your financial statement.
- Manage your cash more effectively. Proper management of funds not only saves money - it makes money for you.
- Protect yourself. By reconciling in a timley manner and promptly contacting your bank about 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.
- Sleep better. You will sleep more peacefully knowing your bank accounts are reconciled and in balance, and that all escrow funds, accounts, checks, and disbursed funds are properly accounted for.
An income statement, also known as a profit and loss statement, adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to determine a profit or loss for the period.
An income statement allows you to:
- Track revenues and expenses so 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.
A balance sheet gives you a snapshot of your business's 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, you could possibly 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 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.
The general ledger is the core of your company's financial records. These records constitute the central books of your system. With every transaction flowing through the general ledger, a problem with your general ledger throws off all of your books.
Having us review your general ledger system every month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we will fix the discrepancies so your books are always accurate.
We are always available to spend time with you so you fully understand how to interpret and utilize the financial information we provide. Our consultations are included in our price, so please feel free to call us whenever you have a question or concern.