Accounts Payables and Receivables are beneficial to a business in many ways. Accounts Payables help businesses manage their cash flow by allowing them to purchase goods and services on credit and pay for them later. This can be especially helpful for small businesses that may not have the cash on hand to make large purchases outright. Additionally, Accounts Payables can help businesses build relationships with their suppliers by showing that they are reliable and trustworthy.

Accounts Receivables, on the other hand, help businesses manage their cash flow by allowing them to receive payment for goods and services that they have sold on credit. This can be especially helpful for small businesses that may not have the cash on hand to wait for payment from their customers. Additionally, Accounts Receivables can help businesses build relationships with their customers by showing that they are willing to work with them and provide them with flexible payment options.

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 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.
• Know how your business is doing? You can’t really know unless all accounts are reconciled and properly accounted for on your financial statement.
• Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.
• 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. This reason to reconcile alone should be enough. Crime exists.
• Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

Monthly reconciliation is an important process for businesses to ensure that their financial records are accurate and up-to-date. It helps to identify any discrepancies between the company’s records and bank statements, which can help prevent fraud and theft. In addition, monthly reconciliation can help businesses track their expenses and cash flow more effectively. This can be especially important for small businesses that may have limited resources and need to carefully manage their finances.

Some other benefits of monthly reconciliation include accurately reporting taxes and saving money by identifying subscriptions that should be canceled or bank fees that are being charged. Overall, monthly reconciliation is an important process that can help businesses stay on top of their finances and make informed ecisions about their operations.

Financial reporting is an important process for businesses to track their financial performance and make informed decisions about their operations. Some of the key benefits of financial reporting include identifying trends in the business so that it can exploit emerging opportunities and mitigate risk from potential challenges. Financial reporting also helps a company stay on top of its cash balances and monitor cash inflows and outflows. This can be especially important for small businesses that may have limited resources and need to carefully manage their finances.

In addition, financial reporting can help companies optimize their financial performance and compliance. It can also help companies manage their debt more effectively by providing a clear picture of their financial situation in real-time. Overall, financial reporting is an essential process that can help businesses stay on top of their finances and make informed decisions about their operations.

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 hunt down any discrepancies such as double billings or any unrecorded payments. Then we’ll fix the discrepancies, so your books are always accurate and kept in tip top shape.

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. 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. Like 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 moment in time. A balance sheet helps you…

• Quickly get a handle on the financial strength and capabilities of your business.
• Identify and analyze trends, particularly in the area 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 can easily handle the normal financial ebbs and flows of revenues and expenses?
• Determine if you need to take immediate steps to bolster cash reserves?
• Determine if your business has been slowing down payables to forestall an inevitable cash shortage?

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.