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Record Keeping There is an obvious inherent need to keep detailed and accurate records for your business. Your records will be used to prepare tax returns filed with the Internal Revenue Service and various state and local taxing agencies. Accurate and complete records are also needed to prepare financial statements and other reports as required by various entities – such as your bank. Financial Statements Do I need them? A recent Pricewaterhouse-Coopers survey of over 400 of the fastest-growing businesses in the US found that companies that benchmark their performance against their peers outperform companies that don't by almost 20%. We have always encouraged our clients to prepare financial statements as a way to measure their business from year-to-year as well as against industry averages. However, we feel we go one step further by providing key financial activity and ratio measurements by using ProfitCents™ software. ProfitCents™ is a system that generates custom-written, industry-benchmarked reports based on data you already have. The application provides clear and insightful analysis in five areas of operational performance: sales growth; profitability; and the utilization of people, assets and leverage. Accounting and other software We strongly recommend that the accounting function be performed by the client rather than outsourcing the work. This allows the client to have “real-time” accounting data that enables him to make business decisions using up-to-the-minute data. Most accounting software allows you to “prepare” financial statements instantly. As an owner, you will use the statements to measure the productivity and financial health of your business on a daily basis. Please visit our Helpful Links page for information on selected vendors. |
