Small Business Accounting
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 I’ll do the following things for you…
- Reconcile your bank account
- Prepare an income statement and a balance sheet
- Clean up your general ledger
These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of my other services.
Reconciling your business checking account each month allows us to keep your bank account, accounting, and taxes up-to-date.
Having me 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
- 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. You can’t really know unless all accounts are reconciled and properly accounted for on your financial statement.
- 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.
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 of 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
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 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 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 of your books.
Having me review your general ledger system each month allows me to hunt down any discrepancies such as double billings or any unrecorded payments. Then I’ll fix the discrepancies so your books are always accurate and kept in tip top shape.
How Much Do I Charge?
My prices are very affordable, but in order to give you an accurate price for my Small Business Accounting services I need to know a little more about your business and what services you’re interested in. Please contact me for a free consultation.