The objectives of providing accounting services is to provide the client with accurate and complete information that can be used as a tool in making effective business decisions or to comply with contractual obligations or statutory/regulatory requirements.
This information often takes the form of financial statements prepared in accordance with generally accepted accounting principles and include: a balance sheet, an income statement, and a statement of cash flows. Other reports may also be compiled from the information to meet specific business needs.
Our accounting services are intended to assist business owners in ensuring that the underlying financial records are processed in a manner that is consistent with generally accepted accounting principles. To achieve this, we are available to assist with the following functions on a monthly or quarterly basis:
Revenue / Receivables / Cash Receipts
Expenses / Payables / Cash Disbursements
Payroll processing and reporting
We also provide financial statement related services. See our Compilations, Review, and Audit services.
Revenue / Receivables / Cash Receipts
Cash is the life blood of any business. Generating revenue is the most desired means by which to obtain operating cash. Ensuring a steady flow is vitally important for business success. Collecting amounts owed at the time of sale/service, or shortly thereafter, contributes to ensuring that resources are available to continue operating.
Our services may include:
- reviewing to determine whether sales transactions are properly recorded, including
- cost of goods sold
- discounts
- credits & returns
- reconciling/reviewing accounts receivable, including
- Aged receivables
- reconciling/reviewing bank accounts
Expenses / Payables / Cash Disbursements
The objective of the expenditure cycle is to convert the organization’s cash into the physical materials and the human resources it needs to conduct business. The expenditure cycle also includes the cost of other expenses necessary to operate the business. Often the purchase is not paid for at the time that it is made. When a business elects to pay expenses at a later date these payables must be managed to ensure that payments are consistent with planned cash flows.
Our services may include:
- reviewing to determine whether expense/purchase transactions are properly recorded, including
- inventory purchases
- fixed assets
- operating expenses
- discounts
- credits & returns
- reconciling/reviewing accounts payable, including
- aged payables
Payroll processing and reporting
Payroll is the largest expense category for many businesses. It is time sensitive and must be accurate. A business must have a payroll process in place to ensure employees receive correct pay on time. Employees’ livelihoods often depend on it.
While the exact payroll procedures vary by company, the basic payroll cycle covers tasks most businesses must do to process their payrolls. The scope and frequency of payroll processing depends on many factors, including the size of the business and the payment cycle. Most processes includes tasks such as calculation of pay, payroll taxes, withholdings, net pay. Payroll related deposits and taxes must be remitted timely. Businesses may choice to process payroll in-house or outsource to a third-party.
Our payroll related accounting services may include:
- review and reconciliation of payroll records, payroll tax returns, and payroll tax deposits.
- ensuring that the payroll and payroll tax expenses are properly recorded
General ledger maintenance
The general ledger is the primary place used for recording financial transactions and serves as the basis for a company’s financial statements. The general ledger is often used as the source for information used in preparing reports for making business decisions. It important that the general ledger is complete, accurate, and up to date.
Our services may include:
- reviewing the structure of the general ledger
- review of the general ledger to ensure transactions are reasonably classified.
- proposing adjusting entries where needed
Account Reconciliation
Account reconciliations are prepared to ensure that general ledger accounts reflect the proper balances at the end of the period. Source documents are typically reviewed and summarized. The summaries are compared to the general ledger balances. Account reconciliation summary reports may also provide the detail information necessary to forecast future account activity.
Our services may include:
- reconciling material balance sheet accounts (Cash, Receivables, payables, Debt, etc.)
- reconciling select revenue and expenses accounts (sales, cost of goods sold, lease obligations, etc.)
Trial Balance
A trial balance is a summary of financial transactions by account for a given period. It presents each general ledger account and the balance of that account. The trial balance is derived from the general ledger and also serves as the basis of the financial statements.
Our services may include:
- preparation/review of the trial balance
We also provide financial statement related services. See our Compilations and Review services.