Bookkeeping to Business Owners & Financial Statement Preparation

Entrepreneurs either initially or over time become extremely proficient in their field of choice for it is by this growth of knowledge and wisdom which affords them the insight to make prudent decisions. Having served as a CPA in Gwinnett for decades I have learned that having a well organized set of books is the first step in preparing for your business success. Each and every hour of a business owner's day, there are a series of insignificant and important thoughts and directions that directly impact the profitability of a business. Continually you are faced with making a positive impact towards bringing your business closer or further away from your goal. A company's financial statement is the measuring stick by which you are able to gage a company's progress along the business continuum and are able to accurately measure the distance between where you are and where you want to be. To this end we work with Atlanta Business Owners to Ensure that their bookkeeping stays current, relevant and useful. Below is a sample of what we might sent to a business owner to work with them regarding their internal bookkeeping issues:

Below are critiques to your internal books: 

-Your Inventory Asset account should be zero and not a negative balance.

-Please combine all of the Loans to Shareholder accounts and Distributions account to one account, while correctly classifying it as an asset or liability accordingly.

-You had several debit balances in Credit Card amounts on the Balance Sheet. These should either be a zero or should be a credit balance reflecting the amount owed.

-Please be sure that the credit card balance and all liability accounts are correct and reflect the year-end amounts owed.

-The Opening Balance Equity account should be zero.

-The Retained Earnings account should equal the prior year's corporate income tax return.

-Please re-class the Other Automobile Expenses account to what it paid for.

-Your are showing both mileage and actual expenses for cars. As you owned a business car for the first part of the year, for that portion you should use actual. For the rest of the year, then you should use mileage. For any excess amounts please charge the difference to the Due to Shareholder account described above and re-class as necessary.  

If you have any questions as you are posting these please do not hesitate to call. After you make the above changes please re-send your Balance Sheet and Profit and Loss.  

Bookkeeping for Atlanta Small Business
Unleash the power of information by learning the ABC's of accounting for the business and financial operations of your business. To learn the nuances of Small Business Bookkeeping http://www.hiscpa.com/keeping-books.html  

Preparing and Reviewing Financial Statements for Atlanta Business Owners
As your financial results of your business are like a doctors chart of their patient, this will help enable you to understand financial and their use. To learn more visit http://www.hiscpa.com/financial-statements.html  

To learn more about tax entities and the taxation thereof visit http://www.hiscpa.com/article2.html  There you will also discover a wide host of resources for America Entrepreneurs.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/  and for his latest book Overcoming Life's 9/11's: Job's Journey and a Voice of One: Nehemiah's Prayer visit http://www.john-dillard.com/  or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!