Whether you own a small business or an enterprise-level one, financial statements provide essential information about your financial health.
A client of ours was having challenges with their in-house bookkeeper. As a result of this, they had improper data and Profit and Loss Balance statements to help the business better understand their financial situation.
The owner of this particular business wasn’t trained in accounting and bookkeeping and wasn’t sure how to interpret financial statements for the business. For the last 5 years, the owner has been essentially operating the business blindfolded because of a lack of basic information about the business’ finances.
Questions such as how much their business was making, how much the business was spending, and what the profit margin was were all unanswerable without the right keeping or interpretation of financial information. This owner had high turnover with employees as well as maxed out credit cards and no information about their monthly sales.
Issues with State and Federal taxes inevitably surfaced with the IRS because the owner’s financial data wasn’t accurate, so they were paying more in taxes than they needed to had they had the correct information.
After just two months of signing up with us, we were able to get their business books and accounting up-to-date on a monthly schedule. They were able to implement a new strategy for their operations and tighten financial control. They now know what their Accounts Payable, Accounts Receivable, and their budget because their financial statements are prepared and reviewed on a monthly basis by professionals.
Our professionals were able to help this business owner reduce their expenses through tax planning and file their personal and business tax on time, without having to file an extension.