As a small business owner, you have more important things to do than keep your own books. We take care of your books for you, so you can get back to the business of running your business and making a profit.
Each month or quarter we will do the following for you.
Bank account 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 electronic transactions.
- Detect and avoid excessive/unjustified bank charges and ensure transactions are properly recorded by your bank.
- Detect and prevent embezzlement within your company.
- Do you know how your business is doing? You really can’t know unless all accounts are reconciled and properly accounted for on your financial statement.
- Manage your cash more effectively. Proper fund management not only saves money, it makes money for you.
- Protect yourself. By timely reconciling and promptly challenging your bank about any unauthorized, fraudulent or forged checks presented to and paid by your bank, you can release your agency from liability for the shortfall and transfer risk to the bank. This reason alone to reconcile should be enough. The crime exists.
- Sleep better. You’ll sleep easier at night knowing that your bank accounts are reconciled, in balance, and that all escrows, accounts, checks, and disbursed funds are properly accounted for.
Generate an income statement
An income statement, also known as a profit and loss statement, basically adds an itemized list of all your income and subtracts an itemized list of all your expenses to get a profit or loss for the period.
An income statement allows you…
- Track income and expenses so you can determine the operating performance of your business.
- Determine which areas of your business are over or under budget.
- Identify specific items that are causing unexpected expenses. Such as telephone, 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.
Generate a balance
A balance sheet gives you a snapshot of your company’s financial situation at a specific time.
A balance helps you…
- Quickly monitor the financial strength and capabilities of your business.
- Identify and analyze trends, particularly in the area of accounts receivable and payable. For example, if your accounts receivable cycle is getting longer, you may be able to collect your accounts receivable 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 income and expenses.
- Determine if you need to take immediate steps to bolster cash reserves.
- Determine if your business has been reducing accounts payable to avoid an inevitable cash shortage.
Balance sheets, along with income statements, are the most basic elements of providing financial reports to potential lenders, such as banks, investors, and vendors who are considering how much credit to extend to you.
Keep a clean ledger
The general ledger is the core of your company’s financial records. These records are the central “books” of your system. Since every transaction flows through the ledger, a problem with your ledger throws all your books away.
Having us review your general ledger system each month allows us to look for any discrepancies, such as double billing or unrecorded payments. We’ll then correct any discrepancies so your books are always accurate and stay in top shape.
