August 19, 2013

In house accounting & bookkeeping

We tell our clients all the time that we wish becoming a rock star was as easy as buying a guitar. So why do business owners try to keep track of their own books? Successful business owners use an accurate set of books to make strategic decisions. We work together with each client and their team to develop a bookkeeping system that ensures accurate books and tax efficiency. An investment in our bookkeeping service is NOT an expense, but an investment in yourself and the time you will free up to run your business.

 

Bookkeeping and accounting are both essential business functions required for all businesses. Bookkeeping is responsible for the recording of financial transactions. Accounting is responsible for interpreting, classifying, analyzing, reporting and summarizing financial data. The biggest difference between accounting and bookkeeping is that accounting involves interpreting and analyzing data and bookkeeping does not.

 

Each client bookkeeping and/or accounting engagement is specifically designed to meet and exceed the needs of our client within their budget. The deliverables below are typical of each bookkeeping and/or accounting engagement. Most of our bookkeeping clients choose to further customize their service package by bundling payroll, tax planning, tax preparation, or any of our other services. You also receive a complimentary client portal to securely exchange data and have your financial information at the tip of your fingers.

 

Bank Reconciliation

 

Reconciling your business checking account each month allows us to keep your bank account, accounting, and taxes up-to-date.

 

Having us reconcile your account each month allows you to…

 

  • Identify lost checks, lost deposits and unauthorized wire transactions
  • Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank
  • Potentially 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 company of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists
  • Sleep Better. You will sleep more peacefully at night 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. Like phone, fax, mail, 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 books.

 

Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we’ll fix the discrepancies so your books are always accurate and kept in tip top 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. All communications are already included in our fee, so please feel free to call us whenever you have a question or concern.