Would you drive a car whose dashboard lights and gauges were covered up? In an emergency, perhaps - but generally a driver want to know the information supplied by such instrumentation as the speedometer, gas gauge and odometer. They let the driver know the operating status of the vehicle.
Businesses owners are no different. There is valuable (if received timely) information that is foolish for them to effectively "cover up" by not having access to accurate and timely instrumentation (reports). The frequency of this reporting is variable -- tax laws demand that it be done at least annually; even the smallest business should do it quarterly to avoid disastrous surprises. Most firms do it monthly, and the very sophisticated today take snapshots of key numbers daily.
Whatever the size of your enterprise, we offer assistance in obtaining and understanding the information small businesses need to compete and succeed in today's business climate. We do this through:
More information on each of these areas follows below.
Below are listed the basic financial reports with which every business owner should be familiar. Some have greater applicability in particular situations than others. In addition we have customized reports for selected industries and the capacity to develop others..
Operating Statement. . .
This report is normally produced on a monthly basis for greatest usability by the business owner. It is also called an Income Statement or a Profit and Loss Statement.
Regardless of the name, this report summarize categories of sales, cost of sales and general expenses, and computes a net profit or loss for a specific period.. It also reflects them as a percentage of sales. These categories are also presented on a year to date basis and are available in alternative formats. These include comparison to budget or prior year-to-date amounts and (when done monthly) in tabular form showing all months for comparison purposes.
Balance Sheet . . .
This report summarizes total business assets, liabilities and net worth at a given point in time. It includes on one line the net profit or loss from the Operating Statement. It is vital for making decisions about capital expenditures, profit distributions and overall financial health.
Bank Reconciliation . . .
Bank account statements and checkbook balances must match to be sure of accurate financial reporting. Failure in this area indicates weakness in internal controls. Our software permits us to monitor and identify problems in this area.
General Ledger Report . . .
This report classifies by category and period all the transactions that have been supplied to the system. This provides the organizational framework for creating the Operating Statement, Balance Sheet and Cash Flow reports. This is the report that keeps track of the detail on each of the business accounts --whether sales, receivables, capital movements or expenses.
Transaction Listing . . .
It is this report that tracks, document by document, initial records of the business. This is true whether they are entered by hand, or using a computerized point of sale system to record sales and a computerized check writing or ACH system to record disbursements. Whatever the source, this report supplies the detail that assures that the operating statement and balance sheet have been properly prepared. It also aids in diagnosing potential problems.
Cash Flow Report . . .
Otherwise potentially successful businesses frequently encounter difficulties because their owners don't have his Instrument" on their reporting dashboard. It gauges the inflow, outflow and availability of cash in the business. This information is quite different than simply sales and paid bills, for it takes into account monies owed to and by the business, invested capital, and personal withdrawals.
Today's business reporting offers a variety of manual and computerized options for recording transactions. Traditional manual reporting methods have had to make room for electronic point of sale systems, credit cards, ACH transfers, bar coded inventory monitoring, online timecards and the like. These options make businesses that use them capable of doing greater things in a more competitive fashion. At the same time they generate a need for greater planning, documentation and training for new associates. Both by ourselves, and in association with qualified consultants, we can help our clients deal with this "brave new world." by designing and monitoring internal reporting systems and preparing appropriate procedure guides.