With Great Power Comes the Electricity Bill.
Make sure your Accounts Payable is managed effectively.
On the first day of working with a new client, the local power company showed up to turn the power off due to non payment. Fortunately the service man was kind enough to give us one day to get everything worked out. My client was perplexed as to why the bill had not been paid. The answer was that the checks were sitting in one of the many piles of paperwork on my client’s desk. You know that pile of paper that just keeps growing as you put out the fires of the day but you never seem to get to. My client did not have a clearly defined bill paying or accounts payable process which was costing the company money not only in late fees, credit problems and wasted productivity time.
If you’re going to play the game of business you must learn to speak the language of business. Unless you’re an MBA accounting usually doesn’t sound like fun but it’s not scary.
Accounting and Bookkeeping – A Crash Course
Okay, here it is, as painless as possible. Accounting and Bookkeeping are different.
Every business, regardless of size, needs a trusted advisor to help with the planning and achievement of financial goals. Certified Public Accountants (CPAs) have the advanced training and experience necessary to advise on a variety of tax matters.
Among their other qualifications, CPAs must pass a rigorous state examination, and keep their knowledge up to date by completing a requisite number of continuing education hours each year.
Why Your Business Needs More Than a Bookkeeper
Many small business owners are unclear where a bookkeeper’s role ends and a CPA kicks in. So let’s take a brief look at their professional responsibilities:
Managing the bookkeeping for your business – it doesn’t sound so bad at first, right? But when you dig deep into everything that goes into managing your business finances, it can be daunting. It turns out that bookkeeping is time consuming and complicated! Some have used the term tedious others go as far as to use the term “drudgery” when describing the duties that go into small business bookkeeping.
Here are six actions that you need to do for accurate and relevant financial statements: