Accounting Focus, Inc. 770-419-1775
Foundation to Grow Your Business
Bookkeeping & Accounting
BOOKKEEPING is the actual recording of financial information into ledgers or data entry into accounting software.
It includes the posting of day-to-day transactions, such as invoices, bills, receipts, payments, purchases, and the recording of other business transactions, such as loans or tax payments.
ACCOUNTING is the "art of recording, classifying, and summarizing transactions ... of a financial nature, and interpreting the results thereof." (AICPA, 1941) Accounting is a system that processes the financial transactions of a business based on common principles in order to produce an "account" of how the business is performing.
This "report-card" provides useful information for the business owner, and is used to prepare tax returns and to apply for loans.
It is important that bookkeeping entries are made according
to standard accounting principles.
Accounting Focus will review current bookkeeping procedures, recommend improvements if necessary, and implement changes. This will allow the business owner to continue to make his own bookkeeping entries.
Accounting Focus also offers ongoing bookkeeping services, which can be scheduled on a weekly, bi-monthly, or monthly basis.
Accounting Focus will work with the business owner to prepare monthly financial statements and to customize them according to his requirements. The most common reports are the Profit & Loss Statement, the Balance Sheet, and the Cash Flow Statement.
The Profit & Loss Statement, also known as the Income Statement, adds your revenues and subtracts your expenses
to come up with a net profit or loss for a given period. The P&L can be customized to show profitablity by customer or
by product.
The Balance Sheet is like a scale with your assets - what you own - on one side, and your liabilities - what you owe,
plus your equity - your own stake in the business - on the other side. It is a snapshot of your financial condition at one point in time. You can analyze changes in the components on both sides of this scale over time and take steps to reverse negative trends, such as customers paying later than before or growing credit card debt.
The Cash Flow Statement identifies the sources and uses of your funds. It helps explain why your revenues may not be turning into instant cash!