Small Business Accounting
Business Accounting Services in Southeast Michigan
As a small business owner you have more important things to do than to keep your own books. We are proud to offer accounting services. We can take care of your books for you, so you can get back to the job of running your business.
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
These tasks form the foundation of your small business accounting system. You can customize the package of services you receive by adding tax planning, tax preparation, or any of our other services.
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:
- Identify lost checks, lost deposits and any 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
- 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.
An income statement, otherwise known as a profit and loss statement, 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. Such as 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
A balance sheet gives you a snapshot of your business' financial condition at a specific point in time.
A balance sheet helps you:
- Get a handle on the financial strength and capabilities of your business
- Identify and analyze trends, particularly in the areas 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 has been slowing down payables to forestall an inevitable cash shortage
Balance sheets, along with income statements, are essential statements in financial reporting providing potential lenders such as banks, investors, and vendors with the information necessary to make an informed decision regarding your business.
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 identify any discrepancies such as duplicate billings or any unrecorded payments. We'll fix any discrepancies so your books are consistently accurate and are properly reflecting your business's activity.