The success of a business depends on how smartly it’s run. Streamlined processes, zero ambiguity, and a genuine need in the community can power a business for years. However, there is one aspect that may go unnoticed by many would-be entrepreneurs and seasoned entrepreneurs alike – finances. Specifically, Is the business financially healthy, or does that area need extra attention?
Healthy finances dictate the long-term health of a business. Survival of such an enterprise depends on the ability to compete in a crowded market. This ability depends on executing nuanced strategies, which in turn must be guided by the business’ finances!
A strategy guided by available resources is more likely to succeed and thus requires expert attention. An expert San Jose bookkeeper can help a business get in touch with its finances. Here’s how these bookkeeping services help:
Reconcile Bank Account
The bank reconciliation process might seem like a simple check but is sure to have a larger impact. On paper, this is simply checking if the business financial records match up with the bank’s records. In reality, this process can help identify innocent errors and potential fraud before they stand to have an adverse impact. Bookkeepers are experts with such records and thus have a trained eye to pick up such discrepancies.
Generate An Income Statement
Also known as profit and loss statements, this essential document provides a succinct summary of a business’s revenue, expenses, and overall profit over a specific period of time. Having such a document serves many purposes – from generally getting a good idea of where the business stands, to adding it as a supporting document when looking for investors. It’s best to involve a professional bookkeeper in this process to create an industry-standard income statement!
Generate A Balance Sheet
If an income statement represents the general cash flow of an organization, a balance sheet represents the specific assets, liabilities, and equity that the business currently has. In a sense, it’s a snapshot of a business’s financial position at a specific time. Many investors will demand a balance sheet before even considering an investment. Bookkeepers can help draft a balance sheet by listing all required items in a neatly formatted statement.
Clean and Refine General Ledger
Over time, the business ledger might get a bit crowded with confusing or even unknown transactions. The entries made in the ledger come under heavy scrutiny in case of an IRS Audit. This makes it essential to maintain a clear and understandable ledger. It also ensures that all financial transactions are recorded consistently and correctly. Your bookkeeper can examine all entries in the ledger for accuracy, correct potential inconsistencies, and back them up with supporting documents!
Provide Consultations
Businesses must consider multiple perspectives if they are to gain a competitive advantage. One such essential perspective is that of a bookkeeper – a financial mind to guide your strategy. They can offer expert advice on various financial and accounting matters, helping an organization make more nuanced decisions when it comes to future plans!
Finances are a tricky aspect to get correct. However, doing so stands to pay many dividends! While a larger business might seek to hire in-house accountants and bookkeepers, that may not always be the most economical decision. A growing business is best suited to seek the services of a professional bookkeeper – one who can dedicate a chunk of their time to your business and its various requirements!
Remember, healthy business finances are the path to long-term survival and competition! This is an area you want to get exactly right. So don’t wait, reach out to a bookkeeper today!