This service is designed for the client who manages available cash themselves, but who wants someone else to record the company's transactions to the general ledger.
When performing this service, we use copies of canceled checks, bank statements, credit card statements, and payroll journals to form the basis of our data entry into our accounting software program.
After the data entry is performed, we will then reconcile the bank statement and credit card statement to ensure that all transactions are accounted for.
Balance Sheet and Income Statement
These two financial statements are the "heart and sole" of every business.
A balance sheet provides detailed information about a company’s assets, liabilities and shareholders’ equity.
Assets are things that a company owns that have value. This typically means they can either be sold or used by the company during the company's operating cycle. Assets also include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as trademarks and patents. And cash itself is an asset. So are investments a company makes.
Liabilities are amounts of money that a company owes to others. This can include all kinds of obligations, like money borrowed from a bank, money owed to suppliers for materials or vendors for operating expenses, payroll a company owes to its employees, or taxes owed to the government.
Shareholders’ equity is sometimes called capital or net worth. It’s the money that would be left if a company sold all of its assets and paid off all of its liabilities. This leftover money belongs to the shareholders, or the owners, of the company.
An income statement is a report that shows how much revenue a company earned over a specific time period. An income statement also shows the costs and expenses associated with earning that revenue. The literal “bottom line” of the statement usually shows the company’s net earnings or losses. This tells you how much the company earned or lost over the period.