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 or quarter we’ll do the following:
- Reconcile your monthly bank statement(s)
- Produce an income statement
- Produce a balance sheet
- Make adjustments to your general ledger
- Provide consultations on the phone, via email or in person
These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding tax planning and tax preparation services.
Bank Statement Reconciliation
Reconciling your business checking account each month allows us to keep your bank account up-to-date.
Having us reconcile your account each month allows you to:
- Determine how your business is doing. You can’t really know unless all accounts are reconciled and properly accounted for.
- Detect unjustified bank charges and ensures transactions are posted properly by your bank.
- Identify unauthorized wire transactions, lost deposits and lost checks.
- Protect yourself. By timely objecting to your bank about any unauthorized or fraudulent checks presented to your bank and paid by that bank, you can relieve your business of responsibility for the shortfall and shift the risk to the bank.
- Sleep more peacefully with the knowledge that your accounts are reconciled, in balance and that all accounts, checks and disbursed funds are properly accounted for.
Income Statement/Profit and Loss Statement
Profit and Loss Statement, otherwise known as an Income Statement, basically adds a list of all your revenues and subtracts a list of all your expenses to come up with a profit or loss for the period.
An income statement allows you to:
- Determine what areas of your business are under-budget or over budget.
- Track expenses and revenues so that you can determine how your business is operating.
- See decreases or increases in cost of goods sold as a percentage of sales.
- Help identify certain items that are causing unexpected costs such as, fax, mail, phone or office supply expenses.
- Help determine your income tax liability.
A balance sheet gives you a picture of your business’ financial condition at any specific moment in time.
A balance sheet helps you:
- Determine if your business can deal with the normal financial ebbs and flows of expenses and revenues.
- Obtain a handle on the financial strength of your business.
- Identify trends, particularly in the area of accounts receivable and accounts payable. If your receivables cycle is increasing you can collect your receivables more aggressively.
- Determine if your business has been slowing down accounts payable to help forestall an inevitable cash shortage.
- Determine if you need to take measures to bolster cash reserves.
Balance sheets and income statements are the most basic tools in providing financial reporting to potential lenders such as investors, banks and vendors who are considering whether or not to grant you credit.
Maintaining a Clean General Ledger
The general Ledger is the heart of your company’s financial books and records. Every transaction flows through the general ledger. Any error can throw off all of your records.
Having us review your general ledger system each month allows us to help find any errors or discrepancies. Then we’ll adjust the discrepancies so your books and records are always accurate.