Accounting Services: What are they and why do I need them?

I know that business owners have a lot on their plates. You’re always trying to trim your expenses, keep revenue growing, and hit those milestones.

Accounting services range from bookkeeping and payroll; to cash management and budgeting; analysis and guidance; to collections and bill pay. The good news is they can also be easily outsourced.

If you only have a bookkeeper or rely on automated online software to handle your business’ accounting, you miss out on accounting services that can save you money.

There are things every business owner should do to keep up with their company’s finances. As revenue grows from $250K to $2M, it doesn’t equate to healthy financials.

Just like Biggie said, Mo’ money, Mo’ problems.

As you grow, you’ll have to maintain higher inventory, hire more employees, and take on additional costs. An outsourced CFO will provide big-picture oversight and implementation of:

  • Professional financial operations: payroll, accounts receivable, accounts payable, month close, etc.
  • Financial analysis allowing you to better understand your changing financials by highlighting achievements and flagging problem areas.
  • Annual Budgeting: this allows you to adapt your business throughout the year to unexpected changes as they arise.

Accounting Services an Outsourced CFO provides

Preparing your company’s financial statements

Your accountant will handle all the financial statements. These help you make more informed decisions and enable you to understand your whole business.

The Balance Sheet provides a snapshot of your business’ financial health. When you have a great financial team at your side, they will ensure that you understand what essential indicators to monitor. At the same time, your business expands and re-stabilizes and then expands again.

Your Income Statement may be showing a profit, but if you’re not diving into the details, you might be missing red flags. Perhaps one or two high performing products are masking the lack of demand for other products, or maybe you’ve got an expense line that has been increasing faster than revenues. You’ll need to adjust that before it gets out of hand.

Regularly checking in on your Income Statement can help you make strategic business decisions to eliminate or expand certain operations.

Your Statement of Cash Flow shows where your cash dollars are coming from: revenue, investors, or loans and lines of credit. You’ll want to keep an eye on this to make sure everything is in balance.

Full-charge bookkeeping and journal and ledger preparation

In addition to reconciling your bank and credit cards each month, an accountant works on your journals and ledgers to add expenses that may not be recorded, such as depreciation and amortization, or will even out annual costs to be reported monthly—enabling your company to see a clearer picture of finances.

Financial advice

Expenditures have consequences. As your business grows, it may be difficult to understand how hiring new employees or taking on more debt can impact your business. An accountant can help you understand the true impact of expanding your team or opening a new office.

Excellent accounting services prepare your company’s books for your tax accountant. They will be able to step in and focus on what they do best – taxes –hopefully saving you time and money.

Accounting goes well beyond basic tax preparation.

When you have an accountant as part of your team, you’ll have a professional that can help you make sense of your business’ numbers.

Schedule a consultation with us today if your business is ready to take the next step forward with accounting services that can save you money and help you better understand your business’ financials.

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