Bookkeeping is the practice of recording transactions and managing day-to-day finances for a company.
For any small business, this can be a time-consuming process, but it can be even more time consuming depending on the scope and breadth of your company’s finances. For those who aren’t experts in the field of accounting, this process can leave a lot of room for error.
Technology is one very effective way to automate your bookkeeping, and it has the dual benefits of cutting time spent on managing your books and minimizing the opportunity for human error. The same can be said for outsourcing your bookkeeping needs to a financial expert who can ensure they’re done correctly and on-time, which leaves you to focus your energy where it’s needed most. We work with technology to help our clients to get the most out of their money.
Below, we’ll walk you through the core components of your bookkeeping processes and how we can help remove the burden of your bookkeeping and accounting needs.
Bank Reconciliation
Reconciling your online business checking account each month allows us to keep your accounting and taxes up to date. We use a variety of online accounting software to reconcile your account each month which allows you to:
- Protect yourself from unjustified bank charges or potential embezzlement within your company by identifying lost checks, lost deposits, and unauthorized wire transactions.
- Know how your business is doing so you can manage your cash more effectively. Proper management of funds not only saves money, it actually makes money.
- Spend time on other matters since we’ve got your finances taken care of. You’ll be at ease knowing your bank accounts are reconciled and balanced, and that all escrow funds, accounts, checks, and disbursed funds are properly accounted for.
Income Statement
An income statement, otherwise known as a profit and loss statement, basically adds up an itemized list of all your revenues and subtracts from that sum an itemized list of all your expenses to come up with a profit or loss for the period. An accurate and up-to-date income statement allows you to:
- Track real-time revenues and expenses so that you can analyze your company’s operating performance and use that information to make key business decisions that can drive impact.
- Determine what areas of your business are over-budget or under-budget and get suggestions on specific ways to improve it.
- Estimate your income tax liability before the end of the year.
Balance Sheet
A balance sheet gives you a snapshot of your business’s financial condition at a specific moment in time. Outsourcing the management of your balance sheet will help you:
- Quickly gain an understanding of the financial strength and capabilities of your business.
- Identify and analyze trends, particularly in the area of receivables and payables. For example, you may notice on your balance sheet that your receivables cycle is lengthening. Armed with that information, you might choose to collect your receivables more aggressively.
- Analyze whether your business is in a position to expand or is poised to easily handle the normal financial ebbs and flows of revenues and expenses.
- Determine if you need to take immediate steps to increase cash reserves and uncover specific ways to do so.
Maintaining a Clean General Ledger in Your Accounting Software
Your accounting software 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, they tend to be the most time consuming to maintain, and yet the most critical. A problem with your general ledger throws off all your books. Having a second set of eyes to review your general ledger system each month allows us to:
- Identify any discrepancies, such as double billings or any unrecorded payments, before they become a problem.
- Fix the discrepancies – so you don’t have to – and so your accounting software file is always accurate and up to date.
These tasks form a solid foundation for your small business accounting system on your accounting software platform. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.
Looking to automate your bookkeeping so you can get back to the real business at hand? Book a consultation meeting today to discuss how our bookkeeping solutions can improve your bottom line and increase efficiency across your business.