Growing and Mature businesses need help from the independent accountant to determine that their in-house bookkeepers are performing their duties properly and consistently. Are they reconciling the bank accounts and then comparing with the bank balances in the general ledger to be sure that all income and expenses have been recorded? Do the general ledger balances reconcile with the related subsidiary journals? Have all the credit card charges been recorded in the books? Are classifications consistent?
And of course there is always the need for oversight to try to prevent irregularities and fraud. Oversight of bookkeeping and accounting systems can provide enough information to design internal accounting control policies and procedures to protect the business and the owners’ investment.
A resource for a bookkeeper with questions, our firm can also oversee the books throughout the year and be better prepared for income tax planning and use of the books and records to prepare compiled, reviewed, or audited financial statement should they be needed for financing or professional licensing and bonding purposes.
Jack, of Jack’s Plumbing, decided that his business was just not profitable. He was working very hard and many long hours but there was never enough money left in his bank account each week. After many sleepless nights, he decided to close his business and try to go to work for someone else. When we looked at Jack’s business bank account at the end of the year to prepare the final tax return, we performed the double-entry bookkeeping function with checks and balances that he should have requested us to do for him monthly. The picture? He had made over $ 150,000 in profits and had been writing personal checks out of the account to pay for EVERYTHING he wanted and needed. The business was doing quite well – he was just spending all of the profits and did not realize it.
Many small business owners need accurate bookkeeping in order to prepare income tax returns or supply a financial statement to the bank or the Contractor’s Licensing Board.
Sometimes folks can just tell from experience whether they are making a profit or not.
But as the business grows larger, is more successful, has more employees performing some of the bookkeeping tasks, and has more complicated financing needs the accounting systems and software they started with may no longer be adequate.
Our bookkeepers have experience selecting accounting systems; whether computerized or manual, to help meet your needs for the present but also position your company for growth. Ratios and analyses can lead to business advisory services that help you be more profitable and have a balance of life that you seek – even as a small business owner.
And accurate books throughout the year can help us advise you of ways to save income taxes at year end – while you still have time to take action.
Non-profit organizations require a different level of bookkeeping and oversight and have different needs. Proper bookkeeping classifications and allocations provide the ability to segregate program service expenses from the general and administrative, and the fund- raising expenses that are also needed to operate.
Obviously a higher percentage of program service expenses reflects that the Organization is using donated funds it receives for the tax-exempt purpose. This makes the Organization more attractive for continued public support and to potential grantors.
Non-profit organizations are also highly susceptible to embezzlement and benefit from oversight and advice from an independent CPA firm such as Renita M. Owens, CPA, LLC and a well-designed internal control system.