Accounting

Proper accounting practices are crucial for knowing and understanding the financial health of your business. 

You may need an outsourced team to manage your accounts, generate reports, or manage your company payroll. Whether it’s for five employees or fifty, we can help. Developing a strong and rewarding financial strategy is a vital part of running a successful business. With this in mind, offset the pressure of financial and legal details to us so you can pursue other initiatives with a lighter load on your shoulders.

Bank and Credit Card Reconciliation

What is it?

Bank and credit card reconciliation are what accountants do to ensure transactions on a bank statement or credit card statement match those on your company’s general ledger. Simply put, we compare your internal records against those of your financial institution.

Why is it important?

Bank and Credit Card reconciliations are important because it ensures that you identify any unusual transactions caused by fraud or accounting errors. A solid monthly reconciliation process is an effective tool for business owners to both identify problems and maintain a clear understanding of their financial position.

What value does it bring to you?

Bank and Credit Card reconciliations will save you money. Reconciling these accounts monthly allows you to identify potential subscriptions you meant to cancel and identify fees you don’t realize you are paying and cancel them in a timely manner.  

person using credit card online

Accounts Receivable / Invoicing Customers

What is it?

Accounts receivable (AR) refers to the money a company’s customers owe for goods or services they have received but not yet paid for. Accounts receivable is listed on a company’s balance sheet as a current asset. Invoicing your customers should happen as a product/service is delivered. 

Why is it important?

Analyzing a company’s accounts receivable will help investors gain a better sense of a company’s overall financial stability and liquidity. Collecting cash as it is due puts money in the bank where it can earn interest or be used to pay bills.

What value does it bring to you?

Keeping on top of your Accounts receivable means it is less likely for a customer to become delinquent in paying. Experience has shown that, as more time elapses between the provision of a product or service, the less likely it becomes that payment will be made. By invoicing your customers as a product/service is delivered that puts more money in your bank. 

Accounts Payable / Paying Bills

What is it?

Accounts Payable (AP) refers to the money a company owes for goods or services they have purchased on credit. Accounts payable is listed on a company’s balance sheet as a current liability. Terms are always listed on each vendor invoice and can be negotiated but typically are due net 30.

Why is it important?

Accounts payable and its management is vital for the smooth functioning process of your business because when managed properly, strong credit and long-term relationships with vendors can be maintained. Paying your bills on time means that vendors will ensure an uninterrupted flow of supplies and services, which in turn, will help in the systematic flow of your business.It will eliminate overdue charges, penalty, or late fees. A proper accounts payable process ensures bills are only paid when due thus eliminating any cash flow strains and ensures duplicate payments are not made.

What value does it bring to you?

The value behind a seamless Accounts Payable process is peace of mind that your bills are being paid based on terms which will allow for better cash flow management. Frauds and theft will also be greatly reduced by following a strict AP process.

Financial Statements

What is it?

Financial statements are a collection of summary-level reports about an organization’s financial results, financial position, cash position and overall health of an organization. They include the income statement, balance sheet, and statement of cash flows.

Why is it important?

Financial statements are useful for determining the ability of a business to generate cash and the sources and uses of that cash. They help determine whether a business has the capacity to pay back its debts. Current, up-to-date financials track financial results on a trend line to spot any looming profitability issues. Accountants can derive financial ratios from the statements that can indicate the condition of the business and mitigate issues before they arise.

What value does it bring to you?

There is value in understanding your financial statements and knowing when you are profitable vs not. Having the information prepared for you saves you time and money and having someone explain your results in layman’s terms is priceless.

Financial Statement

Payroll

What is it?

The process of paying a company’s employees. It includes collecting the list of employees to be paid, tracking the hours worked, calculating the employee’s pay, distributing the salary on time, and recording the payroll expense.

Why is it important?

Payroll is one of the most important aspects of business. It affects employee morale and reflects a business’s financial stability and reputation. One of your main priorities is to never miss a payroll.

What value does it bring to you?

We will make all the payroll headaches go away from setting it up, to having our final approval meeting to be able to distribute funds. We do not submit payroll until your owner or accountant approves payroll to ensure peace of mind.

two people exchanging money

941 Payroll Tax

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    What Is It?

    It is a report of income taxes, Social Security tax, or Medicare tax withheld from each employee’s paychecks. 

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    Why is it important?

    The federal government levies payroll taxes on wages and self-employment income and uses the revenue to fund Social Security, Medicare, and other social insurance programs. Payroll taxes have become an increasingly important part of the federal budget over time. If these taxes are not filed after each payroll period you could be fined depending on your filing status quarterly or bi weekly.

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    What value does it bring to you?

    We keep on top of filing these 941s for you so that no penalties may occur. Filing your taxes on time is very important so that interests or penalties are not accrued.

    Quarterly Taxes

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      What Is It?

      Quarterly taxes are estimated taxes that companies have to pay to the IRS throughout the year if their income exceeds a certain amount. These four tax payments made every three months are meant to cover SS, Medicare, and your income tax. 

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      Why is it important?

      If you miss a tax payment, there are penalties and interest charges that can accrue depending on how much you make and how late you are. Typically, the IRS docks a penalty of .5% of the tax owed following the due date. Filing your taxes on time stops you from dealing with interest and owing way more on Q2 which can also suspend your license for past due FMLA, UI tax, or Workers Comp.

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      What value does it bring to you?

      Peace of mind so you don’t have to worry about filing these taxes. We will fill out your Quarterly reports and file them. We will let you know how much your total quarterly tax amount will be so that you have enough time to budget for it and get these premiums paid.

      1099s

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        What Is It?

        A 1099 form reports certain types of income that a taxpayer has earned throughout the year. There are many types of 1099 forms since there are various ways to earn non-employment income. For most businesses, the common 1099-NIC is used to report income paid to independent contractors and freelancers who earned $600 or more in non-employment income.

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        Why is it important?

        A 1099 is important since it’s used to record non-employment income earned by a taxpayer. It keeps track of income that isn’t recorded in a person’s wages or salary. The IRS matches nearly all 1099s and W2s (those are the wage-report forms from your employer) against your 1040 or other tax forms. If they don’t match, the IRS sends out a CP2000 notice to taxpayers, telling you that you owe them more money.

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        What value does it bring to you?

        We keep on top of who needs to be issued a 1099 and proactively send those out before Jan 31st each year. The penalty for not issuing a Form 1099 is $250 per 1099. If you file 1099’s late, the penalty is $50 or $100 per 1099 depending on how late they are filed. We take the stress and headache away and get it done for you. 

        W2’s

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          What Is It?

          Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them.

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          Why is it important?

          Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. These W-2 statements can be sent in either paper or digital form and must be received by employees no later than January 31 of the following year. Employers must also file a copy of employee W-2s with the IRS.

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          What value does it bring to you?

          You do not need to worry about having to create, distribute, or file these W-2 forms to employees or the IRS. We will make sure they are filed by January 31st.

          We would love to connect with you and see how we can support your business.