Working With Your Bookkeeper
Receiving accurate, detailed and timely financial information is vital in helping you make sound business decisions. Our bookkeeping services are customized to your needs. We can work with you in helping you maintain your books or we can record the information for you. Some clients enter the day to day information into software systems such as QuickBooks. Or, they may have an in-house bookkeeper. They rely on us to make adjusting journal entries, correct mistakes and point out inconsistencies. Unlike the typical “outside” accountant, we work closely with you or your bookkeeper as necessary to get the job done right. Other clients give us a bank statements, sales invoices and receipts. They rely on us to enter the information and generate monthly or quarterly financial reports along with the necessary payroll and sales tax returns.
As a trusted adviser, we strive to save you time and money so that you can concentrate on running your business.
Reconciled bank statement
The process of matching your bank statement ending balance to your books checking account ending balance amount is commonly known as bank reconciliation. The common causes for a difference between the books balance and the bank statement balances are:
- Checks written by the business, but not yet cashed by the bank.
- Deposits made by the business but not yet recorded by the bank.
- Fees the bank charges (insufficient funds, merchant fees and bank charges) that are not reflected on the business books.
- Recording errors in amounts of checks cashed or deposits made (the books list a check amount of $100.75 but the bank cashed the check for $110.55).
- Stale checks or deposits that are listed on the books but are not reflected in the bank statement.
When we reconcile the bank statement, we find these differences and correct them. This action enables you to have a handle on your money, so that you can have less stress.
Preparation of Your Balance Sheet
The balance sheet provides a snapshot of your business financial condition at a specific time (the last day of the reported month). It lists the assets which are property items that the businesses possess. It lists the liabilities, which are the obligations owed by the business against the assets. It lists the owners’ equity which represents ownership, the difference between the assets and liabilities.
The balance sheet illustrates the financial condition of an entity. Do you have too much inventory? Are you collecting your receivables in a timely manner? Do you have too much debt? The balance sheet is where you can identify these situations. We can alert you should we notice any irregularities.
Preparation of Your Income Statement
The income statement lists the revenues and expenses for the reporting period. The income statement summarizes your performance for the month and points out which expenses or revenue items were responsible for the results. The report lists the monthly amounts and the year to date amounts along with a percentage breakdown of each item (as a percent of total sales). Every period you can examine the monthly percentages against the year to date percentages and spot trends were certain expenses may be increasing or decreasing.
Preparation of Your General Ledger
Each transaction represents an exchange of one thing for another. For instance, when you sell a product or a service, you record the sale in the sales account and you record the cash you receive in the cash checking account. The General Ledger keeps track of all these exchanges and sorts them into their perspective accounts. Maintaining an accurate general ledger enables you to generate reliable financial statements and the ability to trace every transaction recorded.
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