We provide a multitude of financial services for business owners.
The history of bookkeeping and accounting stems from ancient civilizations. There are references of counting money and auditing by the ancient Egyptians and Baylonians. Luca Pacioli introduced double entry bookkeeping and accounting in Italy in the 1490s.
Bookkeeping is an accounting process that involves recording all details from source documents into journals. Each journal keeps a record of recorded transactions by date. A general journal is considered the initial book of entry. The information from these bookkeeping journals then get transferred to the general ledger by an accounting process referred to as “posting”.
General journals and general ledgers are used in double entry accounting. Double entry bookkeeping is governed by this accounting equation: assets = liabilities + equity. Reconciliation is another accounting process that involves checking two sets of records which are usually the balances of two accounts and making sure they match. Balances of accounts are reconciled at the end of a particular accounting period.
Here is our bookkeeping process summarized:
- Preparation of source documents for all financial transactions
- Determine financial effects from source documents
- Make journal entries and appropriate account changes
- Perform end of accounting period procedures to get ready for financial reporting
- Compile the adjusted trial balance for our CPAs to review
- Close the books for that accounting period and get ready to start the bookkeeping process again for next reporting period.
Jack Trent & Company CPA has many bookkeepers that can help you with your business finances big or small. Tracking your income and expenditures enables a business owner to measure their financial success of their business venture. Accurate financial reporting will also help reduce any errors during tax time which can be very costly for a business.
Our accounting firm is very well versed in a number of financial systems including Quickbooks. We have Quickbooks Certified bookkeepers ready to help give you a clear picture of your business’s financial health. Our bookkeepers will generate financial reports that are then reviewed by aby of one of our CPAs. Our bookkeepers at our CPA firm will be able to help you with your:
- cash management
- ability to make informed financial decisions for the future
- tax compliance
- ability to spot fraud or embezzlement
Small Business Accounting
As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits!
Each month or quarter we’ll do the following things for you…
Reconcile your bank account
Generate an income statement
Generate a balance sheet
Clean up your general ledger
Provide unlimited consultations
These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.
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.
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.
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 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.
We are always available to spend time with you so you fully understand how to interpret and utilize the financial information we provide. Our consultations are already included in our price, so please feel free to call us whenever you have a question or concern.