Accounting for Small Businesses

AccountingWe don’t need to tell you that small business owners are busy individuals, and the last thing you look forward to is doing your books.

That’s why it makes sense to let AJS Financial take care of your books, so you can get back to the job of managing your business.

See what makes us different by scheduling a free consultation.

How We Can Help

Each period (usually monthly or quarterly) we’ll do the following things for you:

Reconcile Your Bank Account

AJS will reconcile your business checking account(s) each month to keep your bank account(s), accounting, taxes and other important items up to date.  Having us reconcile your account each month can provide the following important benefits:

  • Identify lost or stolen checks, lost deposits and unauthorized automated or wire transactions.
  • Detect and prevent excess/unjustified bank charges and ensures transactions are appropriately posted by your bank.
  • Detect and/or prevent embezzlement of funds from within your company.
  • Determine how your business is actually doing? You can’t really know unless all accounts are reconciled and appropriately accounted for on your financial statements.
  • Provide you with the ability to manage your cash more effectively. Proper management of the funds not only saves money, but it can make money for you by quickly objecting to any unauthorized, fraudulent or forged checks presented to your bank to prevent additional fees for overdrafts and account shortfalls.
  • Give you piece of mind in knowing that your bank accounts are appropriately reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

Generate an Income Statement

An income statement, also known as the 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 a business owner to:

  • Track revenues and expenses so that you can determine the performance of your business.
  • Identify specific items that are causing unexpected expenditures. Items such as; phone, internet, mail, or supplier expenses.
  • Determine what areas of your business are over-budget or under-budget.
  • Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
  • Determine your tax liabilities.

Produce a Balance Sheet

A balance sheet gives you a snapshot of your businesses financial condition (or position) at a specific time. Balance sheets, along with the income statements, are fundamental elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you. Cash flow statement preparation can also be utilized, which we can prepare for you as well if necessary.

A properly prepared balance sheet helps you:

  • Understand the financial strength and capabilities of your business.
  • Determine any favorable or unfavorable trends in your business. This can be particularly important in the area of accounts payable or receivables. For instance, if your receivables cycle is lengthening, maybe you can collect your receivables more proactively.
  • Clearly understand if your business can deal with the normal financial ups and downs of revenues and expenses.
  • Determine if you should take steps to increase cash reserves.

Review and Adjust Your General Ledger

When we review your general ledger we’re able to identify any discrepancies such as duplicate journal entries or any unrecorded payments. For each time period, our goal is to leave your general ledger clean and ready for a new period of transactions.

Unlimited Consultations

All of our clients are able to reach out and to discuss any matter with us regarding the financial information provided. These consultations are already included in our prices, giving you the freedom to call us whenever you may have a question or concern.

Free Consultation!

If you’d like to receive a free consultation to address your small business accounting needs, please contact AJS today!