Small Business Accounting
As a small business owner you have more important things to do than to spend your time keep your own books. We can maintain your accounting records for you, so you can focus on running your business and generating profits.
We can provide the following services on a monthly, quarterly, annual or as needed basis:
- Reconcile your bank accounts
- Prepare an income statement
- Prepare a balance sheet
- Update and adjust your general ledger
- Provide consultations as necessary
These tasks are the foundation of your small business accounting system. You can customize the services you receive by adding payroll, tax planning, tax preparation, or any of our other services that meet the needs of your business.
Reconciling your bank accounts each month keeps your records up-to-date and gives you an accurate understanding of cash available for your business. Having us reconcile your account each month allows you to:
- Identify lost checks, lost deposits and/or unauthorized wire transactions.
- Potentially detect and prevent excess/unjustified bank charges
- Ensures transactions are posted correctly by your bank.
- Potentially detect and prevent the embezzlement of funds from within your company.
- Understand how your business is doing. You cannot truly understand the financial position of your business unless all accounts are reconciled and properly accounted for on your financial statements.
- Manage your cash more effectively.
- Dispute unauthorized, fraudulent or forged checks presented and paid by your bank before fraud goes too far.
An income statement, also referred to as a profit and loss statement, is essentially an itemized list of revenues and expenses that calculates the profit or loss of your business for the period. By reviewing your income statement regularly you can:
- Track revenues and expenses.
- Determine the operating performance of your business.
- Compare revenues and expense to budgeted amounts.
- Identify unexpected expenses.
- Track fluctuations in product returns or cost of goods sold as a percentage of sales.
- Determine your taxable income.
A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time. A balance sheet allows you too:
- Understand the financial strength and capabilities of your business.
- Identify trends, such as a receivables cycle that is lengthening.
- Determine if your business is capable of expantion.
- Determine if your business can handle typical fluctuations of revenues and expenses.
- Determine if cash reserves are sufficient.
Preparing an accurate balance sheet and income statement will allow you to provide necessary financial information to potential lenders, investors, and/or vendors.
Maintaining an Accurate General Ledger
A general ledger is a detailed list of transactions that is the basis of your company's financial records. Every transaction of a small business is recorded in the general ledger. An error in your general ledger will effects any report created from it including the income statement and balance sheet. A proper review your general ledger on a periodic basis allows us to locate and correct errors and ensure accurate financial reporting.