2020 Business tax filing Season ends in
EXTENDED TAX RETURNS DUE ON 15TH OCTOBER, 2020
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 we’ll do the following things for
you…
- Reconcile your bank
account
- Generate an income
statement
- Generate a balance
sheet
- Clean up your
general ledger
- Provide unlimited
consultations
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 our other
services.
1.Bank Reconciliation
Having us reconcile your account each month allows you
to…
Reconciling your business checking account each month
allow us to keep your bank account, accounting, and taxes up-to-date.
- 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.
- 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 agency 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.
2.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.
3.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.
4.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.
5.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. Our consultations are already included in our price, so please feel
free to call us whenever you have a question or concern.