Accounting function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions as well as reasoned choices among alternative courses of action. These objectives are met primarily by the presentation of financial statements. 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 for you:
- Generate an income statement
- Generate a balance sheet
- Generate statement of cash flows
- Clean up your general ledger
- Reconcile your bank account
- Provide unlimited consultations, and
- Benchmark with similar companies
Income Statement
An income statement for a period presents the revenues, expenses, gains, losses, and net income (net loss) recognized during the period. An income statement, also 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.
Information in the income statement helps you do the following:
- Evaluate past performance of your company
- Provide a basis for predicting future performance of your company
- Track revenues and expenses so that you can determine the operating performance of your business.
- Determine what areas of your business are over-budgeted or under-budgeted.
- Identify specific items that are causing unexpected expenditures viz. 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.
A balance sheet presents the assets, liabilities, and owners' equity of an entity at a specific point in time.
A balance sheet helps you do the following:
- 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, you can adjust it by collecting 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 the cash reserves?
- Determine if your business has been slowing down -- payables to forestall an inevitable cash shortage?
Statements of Cash Flows
Statement of cash flows provides relevant information about the cash receipts and cash payments of a company during a period. This financial statement classifies cash receipts and cash payments resulting from operating, investing, and financing activities. Noncash investing and financing transactions are not reported in this statement.
Maintaining a Clean General Ledger
The general ledger is the main accounting record of a business which uses double-entry bookkeeping. It will usually include accounts for such items as current assets, fixed assets, liabilities, revenue and expense items, gains and losses. Each General Ledger is divided into debits and credits sections. The left hand side lists debit transactions and the right hand side lists credit transactions. The general ledger is a collection of the group of accounts that supports the value items shown in the major financial statements. It is built up by posting transactions recorded in the sales daybook, purchases daybook, cash book and general journals daybook.
- The general ledger is the core of your company's financial records. The ledger 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 general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments and fix them appropriately so that the books are always accurate and kept in tip top shape.
Bank Reconciliation
The bank reconciliation is a process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time. 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 will allow you to do the following:
- Identify lost checks, lost deposits and unauthorized wire transactions.
- Detect and prevent excess/unjustified bank charges and ensure correct posting of transactions 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 as regards unauthorized, fraudulent or forged checks presented to and paid by the bank, you can relieve your agency of responsibility for any shortfall of this kind and transfer the risk to the bank. Only this reason to reconcile 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.
- We are always available to spend time with you with a view to enabling you interpret and utilize the financial information we provide. Our consultations are already included in our price, so please feel free to call us whenever you have a question or concern about your business.
- Analyzing current financial information and comparing it with that existing in prior periods to measure the progress. This information can also be used to benchmark with similar companies and gauge your competitive position.
