MONTHLY SERVICE
These are the fundamental tasks performed monthly to keep your financial records accurate and up-to-date. This service includes:
Recording and Categorizing Transactions:
Entering all income and expenses from bank feeds, receipts, and invoices into QuickBooks accounting software.
Ensuring every transaction is correctly assigned to the appropriate account.
Bank and Credit Card Reconciliation:
Comparing the company’s internal accounting records with the bank and credit card statements.
This is a critical step to ensure all transactions are accounted for, catch any errors, and detect fraud.
Month-End Close Procedures:
Making necessary adjustments to journal entries
“Closing the books” to finalize the month’s records.
Generating Monthly Core Financial Statements:
– Profit & Loss (P&L) Statement / Income Statement: Shows the company’s revenues and expenses, leading to a net profit or loss for the month.
– Balance Sheet: Provides a snapshot of the company’s assets, liabilities, and owner’s equity at the end of the month.
– Statement of Cash Flows: Tracks the movement of cash in and out of the business from operations, investing, and financing activities.
Financial Review:
Analyzing these financial reports for any unusual items, significant changes, and trends.
EXTENSIVE Year-End Close Procedures: The end goal is to hand off a clean, complete, and accurate set of financial statements and supporting documents to your tax professional. Including:
Final Review and Reconciliation
– Final Monthly Reconciliation: Ensure the final month’s bank, credit card, and loan statements have been reconciled to match the general ledger balances precisely.
– Accounts Receivable (A/R) Review:
Review the A/R aging report and identify any uncollectible balances (bad debts) that should be written off.
– Accounts Payable (A/P) Review:
Verify all vendor bills have been recorded and paid or correctly accrued.
Ensure all liabilities (money owed) are accurately reflected.
– Missing Documentation Cleanup: Scour for and collect any missing receipts, invoices, or statements to ensure every transaction is documented.
Year-End Adjusting Entries
These special journal entries are necessary to comply with the accrual method of accounting and accurately state the year’s performance and financial position.
– Fixed Assets and Depreciation:
Verify all new capital purchases (assets with a useful life over one year, like equipment) have been recorded correctly.
– Record the depreciation expense for the year for all assets (calculation done by your accountant/CPA, but we will enter the final figure).
– Inventory Adjustment: If your business holds inventory, we adjust the recorded inventory balance to match the results of the physical count taken at year-end.
– Accruals and Deferrals: Record income or expenses that belong to the current year but were not yet received or paid:
Accrued Expenses: Expenses incurred but not yet paid or billed (e.g., unpaid wages earned by employees, utility costs).
Deferred Revenue/Expense: Adjust prepaid amounts (like insurance or rent paid in advance) to recognize only the portion used during the current year.
Finalizing, Closing the Books, and Tax Preparation
– Financial Statement Generation: Produce the final, reconciled versions of the Income Statement (P&L) and the Balance Sheet for the year.
– Prepare Accountant Documentation: Collaborate with your tax preparer to organize and furnish all necessary documentation for an accurate and timely tax filing.
