We know you are busy and sometimes you just can’t figure out what you did wrong. This is where you need assistance from your CPA firm… to resolve the most complex account balance snafus. Cheryl Jefferson & Associates can provide the following routine small business accounting services depending on your needs:
- Reconcile specific accounts to third party reports and documents
- Reconcile your bank accounts and business credit cards
- Clean up your general ledger
- Analyze account balances to determine accuracy
- Resolve accounting issues
- Make client recommendations including process improvements
- QuickBooks Sanity Check (to keep QuickBooks from driving you crazy)
These tasks form the solid foundation of your small business accounting system and could enhance your internal controls. In addition, they can provide training to show you how to identify common problems and help make you a more knowledgeable and effective business owner.
If you are starting a business, you should review our Starting a New Business Checklist.
Reconciling your business bank accounts each month allows you to keep your recordkeeping up-to-date. By reconciling each month you are able to:
- Identify lost checks, lost deposits and unauthorized wire transactions.
- Detect and prevent excess/unjustified bank charges and ensure 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 flow more effectively. Proper management of funds not only saves money but 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 business of responsibility for the shortfall and transfer the risk to the bank.
Credit Card Reconciliation
Credit cards have become substitute bank accounts in small business, so reconciling your business credit cards is as important as reconciling your bank accounts.
Reconciling your credit card accounts allows you to:
- Identify duplicate charges, unauthorized purchases, and incorrect posting amounts.
- Determine your true liability even though transactions may not have posted yet.
- Account for online purchases or purchases with missing receipts
- Manage your credit more effectively and minimize interest charges and late fees.
Maintaining a Clean General Ledger
The general ledger is the core of your company’s financial records. These records constitute the central “books” of your accounting system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your account balances.
By reviewing the details of your general ledger each month, you’ll be able to hunt down any discrepancies such as double billings or any unrecorded payments. Fixing discrepancies as soon as possible helps keep your books accurate and allows for the permanent correction of future mistakes.
Account Balance Analysis
Often you have outstanding liabilities balances that you “just know” have been paid, but yet there they are still on your balance sheet. Account balance analysis involves analyzing questionable accounts and determining what makes up the balance so you can make sense out of what is going on, whether a transaction was posted to the wrong account or whether you are missing information. This analysis can apply to any type of account balance.
QuickBooks System Setup and Training
You’ve bought QuickBooks, installed it, and now what? CJA provides one-on-one QuickBooks training. In addition, we can review the initial set up of your company file, and assist in determining if it is set up for your specific needs and processes.
Business Tax Preparation
While we are not “tax” accountants, we do prepare tax returns for existing clients who have engaged us to prepare financial statements. Our tax services focus on compliance and making sure you use all the deductions that you are entitled to. A relationship with CJA will ensure your taxes are filed efficiently.
Business tax credits usually change from year to year. Not only are there federal tax credits to be aware of, but most states also offer their own tax credits as well. You should review these frequently and ask your accountant about any that you believe you may be eligible for. You may also check our blog as we often discuss the latest tax credits here.