Depending on where you’re at in the life of your business, you may or may not have monthly and quarterly Financial Statements. For many small or start up businesses that can’t afford a full time accounting department, the demands of day to day operations, sales and employee issues leaves them with little if any time to think about the company financial performance. The subject ends up in a stack of other things waiting to be done when you can get to it.
CPA firms can provide regular accounting functions that will produce monthly or quarterly financials – Profit and Loss Statement, Balance Sheet, Cash Flow and Accounts Receivable Ageing. This is where you say “Wow! That’s great. But what do I do with it?”.
The Profit and Loss Statement and the Balance Sheet gives you a finger on the pulse of the financial stability of our enterprise. The Cash Flow statement gives you the knowledge of where you are receiving and expending funds. The Accounts Receivable Ageing tells you which client/customers still owe you money and how long ago you billed them for that money.
You can also use them to dive deeper into the efficiency and profitability of your enterprise.
Knowledge is power. Knowledge to a business owner is power over potential failure.
A CPA firm can assist you in setting up your books, provide training in Quickbooks, provide you with regular financial statements, then educating you on the way to use those documents to help you be a stronger business owner who makes wise decisions.
You trust your insurance provider and your attorney to protect you from liability. So, find a CPA you can trust and who you like and trust them to protect you from financial errors.