Small Business Accounting

SMALL BUSINESS ACCOUNTING SERVICES BY DARBY TAX SERVICE

As a small business owner, you have numerous responsibilities that take more precedence than keeping your books. Let Darby Tax Service 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...

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.

BANK RECONCILIATION

Reconciling your business checking account each month allows 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? Unless all accounts are reconciled and properly accounted for on your financial statement, you can't know.
  • Manage your cash more effectively. Proper management of funds saves money and 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.

INCOME STATEMENT

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 to determine the operating performance of your business.
  • Determine what areas of your business are over-budget or under-budget.
  • Identify specific items causing unexpected expenditures like phone, fax, mail, or supply expenses.
  • Track dramatic increases in product returns or the cost of goods sold as a percentage of sales.
  • Determine your income tax liability.

BALANCE SHEET

  • A balance sheet gives you a snapshot of your business's 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 and income statements are essential in providing financial reporting to potential lenders such as banks, investors, and vendors, 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 discrepancies such as double billings or unrecorded payments. Then we'll fix the discrepancies, so your books are always accurate and kept in tip-top shape.

UNLIMITED CONSULTATIONS

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 questions or concerns.

Please complete this form if you'd like to receive a free consultation on our Small Business Accounting Service.

Can't find what you're looking for? Simply call our friendly staff at 810-694-9301.

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