Our Accounting Services offer designing and implementation of an accounting system with an emphasis on strong internal controls, along with standard policies and procedures (to assist with new hires).
We offer preparation of an accounting manual with written standard operating procedures, as well as flow-charts for ease of training personnel.
We can prepare or oversee the preparation of your financial statements monthly or quarterly.
With our monthly or quarterly plans we can help you utilize these financial statements to manage your business and increase your profitability. After preparing your financial statements we discuss the results with key personnel in your business.
Financial records are critical for several reasons:
- Daily operating decisions are based on financial reports.
- Banks require reports of past performance before they will loan money.
- Tax return numbers need proper support.
- Monthly reports with year-to-date comparisons will help you with your management decisions.
- You will be able to compare your current against a prior years which will give you a better idea on how the current year will finish.
- You can compare your total accounts receivable (your customers) or payables (your vendors) with prior years to spot such problems as slow paying customers or vendors not offering discounts or you not taking advantage of vendor discounts.
- This information will allow you to take corrective action immediately.
Below is a list of common financial ratios that should be analyzed on a month-to-month and year-to-year comparison.
Understanding your financial statements can increase your business profits.
Current Ratio – Current Assets divided by Current Liabilities. This ratio will measure your ability to pay your current debts
Debt To Equity Ratio – Total Liabilities divided by Owners Equity (Net Worth) will provide you with a year-to-year comparison of your ownership in the company.
Accounts Receivables Outstanding – Accounts Receivables divided by Average Day’s Sales will give you the number of days’ your sales are on the books.