A balance sheet gives you a snapshot of your business’s financial condition at a specific moment in time. A balance sheet helps you identify and analyze trends, particularly in the area of receivables and payables. Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.
An income statement, otherwise known as a profit and loss statement, basically 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. It allows you to determine what areas of your business are over-budget or under-budget by identifying specific items that are causing unexpected expenditures (e.g., phone, fax, mail, or supply expenses).
Reconciling your business checking account each month allow us to keep your bank account, accounting, and taxes up to date. This allows you to manage your cash more effectively and know how your business is doing.
The general ledger is the core of your company’s financial records. These records constitute the central “books” of your system. Since every transaction flow through the general ledger, a problem with your general ledger throws off all your books.
We are always available to spend time helping you fully understand how to interpret and utilize the financial information we provide. Our consultations are already included in our price, so please feel free to call us whenever you have a question or concern.