Accounting Focus, Inc. 770-419-1775
Foundation to Grow Your Business
Money & Banking
It is critical for every business owner to understand his company's cash flow and cash situation, and to find ways
to improve the liquidity position of the business. Accounting Focus can assist you in a number of ways.
It is important to do monthly bank reconciliations. In the past, this was literally a matter of balancing your checkbook.
With debit cards, online bill payments, direct deposits, etc., it is necessary keep receipts for expenditures and receipts
and to create records for online activities.
If you are using accounting software, you can typically download the bank statment directly to your system. Bank
transactions are directly matched to your recorded transactions and make reconciliation easy! However, you must ensure
that all transactions have been recorded so that a match can be found. For example, your system should show the total of
the deposit, not the individual checks.
Our support to new customers frequently starts with a bank reconciliation, back to when the business was started. This
work often proves to be very informative for the business owner and often leads to adjustments in the profit and loss
figures. When you reconcile your bank accounts on a monthly basis, you will know that all of your business activities
have been recorded, and how much cash you have on hand to start the new month.
If your sales are growing, but your cash receipts remain slow, you may be offering credit terms that are too generous.
Are you asking customers to pay you within 30 days, while your vendors expect payment from you within 15 days?
Accounting Fcous can help you set up a credit policy that works within your industry, as well as effective procedures
to collect past due accounts receivable.
It is important to understand how cash flow is related to profit. To a large extent it is a matter of timing, but it can be absolutely critical for the survival of a business. It is possible for a business to be cash rich, but not show any profit.
And it is possible for a business to be profitable, but not have any cash.