As a small business owner, you have other important responsibilities that can make it daunting for you to keep your own books. We understand how these can be overwhelming. This is why 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 or quarter, we’ll 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 are the building blocks of your small business accounting system. You can also customize our service package by adding payroll, tax planning, tax preparation, or any of our other services.
Bank Reconciliation
Reconciling your business checking account each month allows us to keep updating your bank account, accounting, and taxes.
Having us reconcile your account each month allows you to:
- Identify lost checks, lost deposits, and unauthorized wire transactions.
- Reduce excess/unjustified bank charges and ensures transactions are posted correctly by your bank.
- Detect and prevent embezzlement of funds from within your company.
- Know how your business is doing by ensuring all accounts are reconciled and properly accounted for on your financial statement.
- Manage your cash more effectively. Proper management of funds not only saves money, but it also 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.
- Have peace of mind 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 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, such as phone, fax, mail, or supply expenses.
- Track dramatic increases in product returns or the 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 key elements in providing financial reports 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. They constitute the central “books” of your system. Since every transaction flows through the general ledger, even a minor problem with it throws off all your books.
Having us review your general ledger system each month allows us to spot any discrepancies, such as double billings or any unrecorded payments. Then, we’ll fix the discrepancies so that your books are always accurate and kept in tip-top shape.
Unlimited Consultations
We are always available to spend time with you so that you can fully understand how to interpret and utilize the financial information we provide. Our consultations are already included in our price, so please do not hesitate to call us whenever you have a question or concern.