Business Accounting – Small to Medium

Bank Reconciliation

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

Having us reconcile your account each month allows you to:

• Sleep Better.  You will sleep more peacefully at night knowing your bank accounts are reconciled, with all incoming funds, accounts, checks and disbursed funds properly accounted for.
• 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.
• Detect and prevent embezzlement of funds from within your company.
• 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 and paid by your bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank.

Income Statement

An income statement – also known as a profit and loss statement – allows you to monitor, review and navigate your business.  You are able to identify first-hand what your financial strengths and weaknesses are.

• Track revenues and expenses so that you can determine the operating performance of your business.
• Determine what areas of your business are over- or under-budget.
• Identify specific items that are causing unexpected expenditures.
• Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
• Determine your income tax liability.

Having this information on a periodic basis allows you to make changes, and be proactive instead of reactive to a situation.

Balance Sheet

A balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time.

• 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 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. We’ll fix the discrepancies so your books are always accurate.