Software set up
You have your business plan and are ready to go. You look into bookkeeping software and begin seeing terms such as Chart of Accounts, Assets, Liabilities, Equity, Financial Reporting, Tax set-up, and so on. This seems like too much so you put it to the side until you have more time to dig into it. Why not ask a professional to help you set it up – there is more to it than just entering invoices and receiving payments. As an experienced accountant, I know the proper way to set a business up with their accounting/bookkeeping software. Do not miss out on using technology to your advantage in ways that will actually save you time (which means money) because you decided to go it alone. Reach out to someone who knows this end of your business and can help you set it up properly.
Financial software housekeeping
Have you had a bookkeeper several bookkeepers throughout the years and feel as though your statements are not making sense. Or maybe you have been denied funding but are not sure why.
As an experienced accountant I can dig into your software and see where there may be problems. As bookkeepers change, so does the experience level and process of inputting transactions. Perhaps the first bookkeeper used Supplies in the Chart of Accounts and then the next bookkeeper created other accounts for supplies such as pens, paper, printer ink, etc. Do you have duplicate accounts that really should be merged into one? Do you have debt that is being recorded as an expense? Or, perhaps the debt was recorded but not the asset to go with the debt. Are these accounts even set up properly – perhaps you did the initial set up until you were ready to hire a bookkeeper and future bookkeepers haven’t taken the time to dig into your system. Are all of your transactions recorded properly? These types of errors can affect your financial statements, which can then affect credit decisions made about your company.
I can help, I know what to look for. I can help you clean up your system to make your financial statements appear cleaner and easier to understand. This also affects the ratios that creditors use when deciding if your business is a credit worthy applicant.
Period Close Processes
Does month/quarterly/annual closing periods seem chaotic and reports not getting out as soon as you would like? Do you find that you are unsure of the information that is in your statements? Do they somehow not feel quite right, intuitively? Allow me to help you develop period end closing routines that will eliminate the chaos, consistently get reports distributed on time, and ensure accuracy in the data being presented. Lets walk through the process, devise a strategy for your team, and create a checklist to be followed each month in order to deliver timely and accurate reports each period, every period!
How well are you tracking your capital assets? Is depreciation recorded monthly, or only at year end? Is there debt associated with the asset? Is the interest expense being recorded each month, or is that a year-end adjustment as well? If transactions like these are only recorded at year-end as your tax professional directs, that could be costing you extra money. In addition, year-end adjustments make trend analysis difficult. Let me help you smooth out those fluctuations and save you money by having fewer year-end transactions for your tax professional to prepare.
If you are just getting started and have little accounting knowledge, terms like Chart of Accounts, Depreciation and Amortization, Owners Equity probably seem like a foreign language to you.
Chart of Accounts
The fundamental building block of all financial reports. It is a systematic and logical format to group all transactions that occur in your business.
- Even though some software programs make getting started seem easy, best business practices are to establish a systematic and logical chart of accounts that will help your future reporting and analysis processes. This is an underappreciated tool that can either help or harm businesses in the future.
- Wouldn’t it be nice to have someone at your side who can guide you through the process and teach you how to use it and, possibly, add future accounts if necessary (which is most likely)?
Do you know how to properly record assets, such as vehicles, computers, machinery, cash, etc., that you bring into the company?
- Should the money you put into the organization be a loan to the company or placed into capital? How do you know? Does it matter? What are the effects of those choices?
Assets and Liabilities
The most common mistakes in recording transactions happens at this level. I can help you avoid these errors.
- Are you sure how to properly record that equipment you just purchased?
- Did you take out a loan to purchase equipment or property? How do you record the debt associated with the property or equipment? How do you record the monthly transactions associated with that debt?
We all know that the bank accounts (checking, savings, money markets, etc.) need to be reconciled each month. But what about your other accounts: loans, credit cards, machinery and equipment, etc.? All these items should be reconciled as well.
After 20+ years in accounting, I know accounting! I can help you get started and I can help the existing business clean up errors that may be negatively affecting statements. Properly designed and maintained accounting set up and maintenance create value through comprehensive and correct financial statements. Banks use these statements to determine the viability of a company and if that company is worth lending money to. Do not underestimate the value of financial statements. Underwriters are seasoned professionals trained how to analyze them – so lets work together and create the real story of your business venture.