I handle bookkeeping – understanding the financial status of a business and recording transactions, this is particularly handy data to have when tax season comes.
What is bookkeeping?
“I will uphold the bookkeeper oath by choosing to act with honesty, objectivity, confidentiality, and professionalism in all interactions with my clients and on behalf of my clients to the best of my ability and judgment.” – Bookkeeper’s Oath
Bookkeeping is the process of recording and ensuring all money coming in and going out of an organization is accurately documented, serving as the foundational first step of the broader accounting process.
What do I do?
I follow the monthly accounting cycle to ensure all records are accurate and your financial information is documented. The accounting cycle is 6 steps:
- Collect and Analyze Transactions
- Record and Post Transactions
- Prepare Unadjusted Trial Balance
- Prepare Adjusting Entries
- Prepare Adjusted Trial Balance
- Prepare Financial Statements
I follow the accrual method of accounting, the method that is required by GAAP (Generally Accepted Accounting Principles). This means that businesses using accrual accounting are more likely to be compliant with accounting regulations.
What does the client get out of this?
I provide clients with monthly reports, the standard ones being the balance sheet, income statement, statement of cash flows, and statement of equity. These reports provide financial information that informs your business.
The balance sheet tells about a business’ financial position, giving insight on assets, liabilities, and equity.
The income statement indicates a business’ performance, showing revenues and expenses.
The statement of cash flows shows cash movement through the business’ accounts.
The statement of equity describes the owner’s stake in the business.
I help clients develop and stick to budgets. Budgets include revenue, sales, and expenses. Understanding how these numbers change over time help owners more fully understand their business and determine their business goals.
I present clients with financial ratios that describe the business’ financial health and performance in specific areas:
Liquidity describes the business’ ability to pay down current liabilities.
Efficiency is how effectively something is done.
Solvency (or insolvency) is the business’ ability to pay long-term debt.
Profitability is the percentage of revenue that a business retains as profit.
Ready to better understand the financial status of your business?
Pricing varies based on business size and other factors. Contact me above for more details.