• Bookkeeping is the recording of your organization's financial transactions. For each transaction, this consists of the date, amount to be debited and credited, a description, and a unique reference number. This is called a journal entry and is usually recorded on the company’s general ledger. If needed, it may be done on a subsidiary ledger and then summarized onto the general ledger.
• Done properly, it enables your business to track and produce operational, financial, and investment reports used in all kinds of decisions. Without this foundation, decision makers are flying blind.

Accounts receivables are money owed to your company from customers for services or products purchased but not yet paid. They are an asset to the company and represent credit you have extended to the purchaser. It is generally best to have accounts receivables paid on a short timeframe.

Accounts payable is money your business owes to its suppliers and vendors for goods and services purchased but not yet paid. This is credit they have extended to your company and shows as short term debt on your books.

Deferred revenue is created when the business receives payment for goods or services that have not been delivered yet. In other words, the payment is not earned yet and is therefore a liability to the business. Once it is earned it becomes an asset.

Bank reconciliation is the process of reconciling differences between the bank statement and your company’s internal list of transactions. The goal is to ensure accuracy with your books and also the bank records. This should be done on a periodic basis.

Employee Expense Processing is the process of reimbursing an employee for business expenses they have paid for with their own money. It typically involves an expense report, receipts, and approvals.
A company reimbursement policy is an important tool to guide and manage how that happens, what are and are not acceptable expenses, limits and budgets.

• Fixed assets, or capital assets, are longer term tangible property, plant and equipment (PP&E) used by the business to make money, but not part of the goods and services it provides. Some examples include:
• Facilities
• Computer equipment and software
• Furniture and fixtures
• Machinery, vehicles
• Office furniture and production equipment
• Accounting for fixed assets includes:
• Acquisition
• Depreciation
• Revaluation
• Impairment
• Disposal

Tracking of repairs and maintenance costs on fixed assets is typically classified as an expense. However, when these costs extend the useful life or increase the productive capacity of an asset, they are considered capital expenditures and are depreciated over time. Attaching the expenses to their applicable assets provides you critical insight into the ongoing cost of a particular asset so you can see when it makes sense to replace it. For information on our recommended computerized maintenance management system (CMMS) click here

• Payroll is the compensation a business pays to its employees on a set schedule. This process also includes deducting payroll taxes and other deductions. The company is then required to pay the taxes, along with additional employer taxes, to the applicable government entity such as the Internal Revenue Service or state tax commission.
• While payroll is much anticipated by employees, as the one making payroll in your company, you have to manage cash flow, risk, and expenses to ensure sufficient funds are available for employee compensation, including all deductions. In part, this means ensuring goods and services are provided and customers are paying timely.

• The general ledger is the central repository for recording a company’s financial data and transactions. In double entry accounting, the left side of the ledger is for debits, assets, expenses, losses, and dividends, while the right side is for credits, liabilities, gains, income, revenues, and equity.
• Every transaction is recorded on both sides of the ledger and so the sum of each side must balance in order to produce accurate financial statements (the income statement, balance sheet, and other financial statements are derived from the general ledger).
• The ledger is made of journal entries and maintaining it consists of accurately recording all financial transactions and assigning them to the proper accounts. A trial balance is then run periodically, usually monthly, and any discrepancies are corrected. See the Bookkeeping section above.

• Depreciation is allocating the cost and value of an asset on the company books over its useful life. This impacts your taxes and financial statements.
• Not properly accounting for depreciation can significantly affect your profits and leave your business unprepared to maintain and replace your tools and equipment and other assets.
• Accounting for depreciation can also help you see the cost of an asset compared with the value it is providing.

• Month-end closing is one of the most important accounting processes in maintaining visibility into your business, tracking key performance indicators, and monthly and annual financial statements. It supports budget decisions, course corrections, and other current and future business and tax planning.
• While the process may vary from business to business, it happens the first several days each month and involves collecting and updating all the financial information for the previous month, verifying and reconciling the data, assessing fixed costs, creating the financial statements, and conducting a review prior to closing.

The major financial statements for for-profit businesses include the balance sheet, income statement, cash flow statement, statement of changes in equity, and explanatory notes. Financial statements are used to evaluate a company’s financial health and earnings.

• The annual report of a company is provided to shareholders and describes the financial operations and condition of the company. It will generally have illustrations, charts, an introductory letter from the CEO or chair and an overview of the financials. It often may be a marketing tool for potential investors as well.
• Publicly traded companies will also issue an annual report. In addition, they are also required to file a 10-K report with the U.S. Securities and Exchange Commission (SEC). The 10-K report is similar to the annual report although more factual and detailed. Some required information includes the company’s history, financial statements, earnings per share, organizational structure, subsidiaries, and executive compensation.

Be prepared for taxes by knowing what you will owe. File quarterly and annual tax payments and forms.

• Get help preparing your business and personal returns.
• State sales tax forms

• The data feeding the financial statements, along with other key performance data, such as measuring results on marketing efforts, is a treasure trove of insightful stories that will enlighten your business decisions.
• This information, and more, can be served up in reports and dashboards and will support you, as captain of your company, to make smart business decisions.

Let’s take initial measurements of your company as we begin working together so we can see what growth occurs after you begin benefiting from our services.

As a company grows, the services of a chief financial officer (CFO) become more important in being able to sustain that growth. Primary duties include overseeing all accounting in the business, managing current assets and cash, investments and other future planning. If you do not have a CFO we can provide additional services to fill in the gap.

We will meet with you periodically to review your business financial statements and other data and discuss opportunities to improve your business.

Accounting software needs to support your business and provide easily accessible data. If you need consulting on which software program to use, we can do an assessment project. We have access to multiple accounting software and have staff certified in Quickbooks along with experienced resources in enterprise resource planning (ERP) systems. We guide you through the selection and implementation process. Not familiar with what ERP is? Check out our article here.

Effective accounting and other business information systems are a key part of good decision-making and process improvement. Understanding the basics of process improvement will positively affect how you build your business. To discuss a consulting engagement, schedule a free consultation.

• Our bookkeeping and accounting services are only the beginning. We are dedicated to your success and will support you with eye opening, informative presentations from partners to help you succeed and grow your business in areas such as:
• Wealth accumulation
• Retirement and pension funds and options for you and your employees
• Financial advisers
• Wealth preservation and liability protection
• Legal organization and structure for your business and yourself
• Corporations, Limited Liability Companies, Trusts, etc.)
• Employee benefits
• Health and wellness tips
• Direct care arrangements (medical)
• Process improvement
• And more!

Employee benefits are often one of the highest expenses businesses have, second only to payroll (it is part of employee compensation). Medical insurance is the largest part of that expense. Learn about innovative options to bring down the cost to your business, and facilitate better access to medical care. These can include variations of Direct Care, in-house medical clinics, and wellness strategies. To discuss, schedule a free consultation. Learn more about direct care here.