Small Business Accounting

If you’d rather be doing something else…

Accounting As a small business owner, you likely have more important—or more fun—things to do than your own books. So why not focus on what you’d rather be doing? Let Apel take on your small business accounting needs. Each month or quarter (based on your preference), we’ll do the following for you:

  • Reconcile your bank, credit, and loan accounts
  • Generate an income statement
  • Generate a balance sheet
  • Clean up your general ledger
  • Provide unlimited consultations

These tasks will form the core of your small business accounting system. You can customize your package of services by adding payroll, management advisory services, tax planning, tax preparation, or any other Apel service that could benefit your business.

Bank, credit, and loan reconciliation

Reconciling your business checking, credit, and loan accounts each month allows us to keep your various accounts, accounting, and tax-related information up-to-date. On top of that, having us reconcile your accounts each month also allows both of us to…

  • Identify lost checks, lost deposits, and potentially unauthorized transactions.
  • Detect and prevent excess/unjustified bank or credit charges and ensure transactions are posted correctly to your accounts.
  • Detect and prevent embezzlement of funds from within your company.
  • Know how your business is doing. You can’t really make good financial business decisions unless all accounts are properly accounted for on your financial statements.
  • Manage your cash more effectively. Proper management of funds—i.e., good cash flow — not only saves money but can also make you money.
  • Keep you protected. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent, or forged checks presented to and paid by your bank, you can relieve your entity of responsibility for the shortfall and transfer the risk to the bank. This reason alone speaks to how crucial account reconciliation is.
  • Increase your profits. All the hours spent reconciling and preparing your own records constitute non-chargeable time. Turn those non-billable hours into profit by using those hours more effectively for things like promoting your business, building a better widget, or making sales calls.

Income statement

Image of Income statementAn 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. The result indicates the profit or loss for a given period. This is hardly a mystery: the only way to increase profits is either increase sales (income) or decrease your expenses. But this is also exactly why an accurate income statement is so important for you. It allows you to…

  • Track revenues and expenses so that you can determine the operating performance of your business.
  • Determine what areas of your business are over-budget or under-budget.
  • Track dramatic increases in product returns or 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. That means it can help you…

    Image of Balance sheet

  • Quickly get a handle on the financial strength and capabilities of your business.
  • Identify and analyze trends, particularly in receivables and payables. For example, if your receivables cycle is lengthening, you may want to collect more aggressively.
  • Determine if your business is positioned 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, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a clean general ledger

The general ledger forms the heart 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 it can throw off all your financial information.

Having us review your general ledger system each month allows us to hunt down any discrepancies such as double-billings, entry errors, or unrecorded payments. If errors are found, we’ll figure out how to fix them so that your books are always accurate and continue to serve as the bedrock data for your important decision-making.

Unlimited consultations

At Apel, we’re ready and willing to help you. We’ll work with you so that you can understand how to interpret—and apply—the financial information we provide. Our consultations are already included in our fee, so you should feel free to call us whenever you have a question or concern.

If you’d like to receive a free consultation on our Small Business Accounting services, please contact us.

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