Each reporting period (monthly or quarterly) we will…
• Reconcile your bank account
• Generate an income statement
• Generate a balance sheet
• Clean up your general ledger
• Provide office consultations
These tasks form a solid foundation of your business bookkeeping system. You customize the package of services you receive by dictating the period we will cover, and then adding payroll, tax planning, tax preparation, or any of our other services.
Reconciling your business checking account each month allow us to keep your bank account and taxes up-to-date.
• When we reconcile your account each month, you can…
• Identify lost checks, lost deposits and unauthorized electronic transactions.
• Detect and prevent excess/unjustified bank charges and ensure that 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 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 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 business of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime does exist, and affects us all!
An income statement, known as a profit and loss statement, adds an itemized list of all your income and revenues and subtracts a detailed of all your expenses to come up with a profit or loss for the period.
An properly prepared income statement allows you to…
• Track income and expenses so that you can determine the operating performance of your business.
• Determine how your business is performing in relation to your budget. Are you over-budget or under-budget?
• Determine your income tax liability.
A balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time.
A balance sheet helps you…
• Get a handle on the financial stability and capabilities of your business.
• Identify and analyze trends, particularly in the area of receivables and payables.
• 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?
Balance sheets and income statements are the basic elements necessary to providing financial information to potential lenders such as banks, investors, and vendors who are considering your credit worthiness.
Maintaining a Clean General Ledger
The general ledger is the heart of your company’s financial records. These records constitute the core “books” of your system. Every transaction flows through the general ledger, so a problem in your general ledger will corrupt all of your books.
When we review your general ledger system each month, it 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 and kept up to date.
We are always available to spend time with you so you fully understand how to interpret and utilize the financial information we provide. These consultations are included in our price, so please feel free to call us whenever you have a question or concern.
Please call or email to get a Free Consultation with a Small Business specialist, and receive more information about our services.