Small Business Accounting

 

As a small business owner you have more important things to do than to keep your own books...and probably (in your mind) more enjoyable things too! We can take care of your books for you, so you can get back to the business of generating profits in your own area of expertise!

Each month or quarter (based on your preference) we'll do the following things for you:

  • Reconcile your bank, credit and loan accounts
  • Generate an income statement
  • Generate a balance sheet
  • Clean up your general ledger
  • Provide unlimited consultations

These tasks form the core structure of your small business accounting system. You can customize the package of services you receive by adding payroll, management advisory services, tax planning, tax preparation, or any other needs you feel we may be able to help you with.

Bank, Credit & Loan Reconciliation

Reconciling your business checking, credit and loan accounts each month allows us to keep your various accounts, accounting, and taxes up-to-date.

Having us reconcile your accounts each month allows both us to ...

  • Identify lost checks, lost deposits, and potentially unauthorized transactions.
  • Detect and prevent excess/unjustified bank or credit charges and ensures transactions are posted correctly to your accounts.
  • Detect and prevent embezzlement of funds from within your company.
  • Know how your business is doing? You can't really make good financial business decisions unless all accounts are properly accounted for on your financial statements.
  • Manage your cash more effectively. Proper management of funds (cash flow) 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.
  • Increase your profits - hours spent reconciling and preparing your own records are called "non-chargeable" time. Turn those non-billable hours into profits by using those hours more effectively by promoting your business, building a better widget, or making sales calls.

Income Statement

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. It is no mystery, the only way to increase profits is either increase sales (income) or cut your expenses.

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.

  • ostage, 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...

  • 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 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 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 financial information.

Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings, entry errors, or any unrecorded payments. If any errors are found, we'll fix the discrepancies so your books are always accurate and kept in management decision-making 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. Our consultations are already included in our record keeping price, so please feel free to call us whenever you have a question or concern.

If you'd like to receive a Free Consultation on our Small Business Accounting Services, please contact us.