Quickbooks (QB) is our preferred bookkeeping software. We follow QB's recommended checklist of weekly, monthly, quarterly, and yearly tasks. Every week we will record your transactions, saving invoices and receipts into QB, review bills to pay, strategically pay vendors, and send invoices with payment terms to customers.
On a monthly basis we will reconcile your accounts, review A/R aging reports, review inventory levels if applicable, process payroll tax payments, and compare current financial statements to prior periods and your budget.
Each quarter we estimate and make tax payments for payroll and sales tax.
At the end of the fiscal year we will prepare your books for tax filings, review A/R aging reports again, take another look at inventory, send W-2's to employees and 1099's to contractors, go over your financial statements line by line, and provide the tools to prepare a reasonable budget going forward.
We are familiar with all of the tools that QB has to offer and we will take the time to show you the ones that will make your business run more efficiently.
We provide a full range of financial statement analysis. Here are some of the ratios we can analyze for your business:
Liquidity Ratios. Measures of the company’s short-term ability to pay its maturing obligations.
Activity Ratios. Measures of how effectively the company uses its assets.
Profitability Ratios. Measures of the degree of success or failure of a given company or division for a given period of time.
Coverage Ratios. Measures of the degree of protection for long-term creditors and investors.
1. Current ratio
Current assets/Current liabilities
Measures short-term debt-paying ability
2. Quick or acid-test ratio
Cash+Short-term investments+Accounts receivable (net)/Current liabilities
Measures immediate short-term liquidity
3. Current cash debt coverage
Net cash provided by operating activities/Average current liabilities
Measures a company's ability to pay off its current liabilities in a given year from its operations
4. Accounts receivable turnover
Net sales/Average net accounts receivable
Measures liquidity of receivables
5. Inventory turnover
Cost of goods sold/Average inventory
Measures liquidity of inventory
6. Asset turnover
Net sales/Average total assets
Measures how efficiently assets are used to generate sales
7. Profit margin on sales
Net income/Net sales
Measures net income generated by each dollar of sales
8. Return on assets
Net income/Average total assets
Measures overall profitability of assets
9. Return on common stockholders' equity
Net income−Preferred dividends/Average common stockholders' equity
Measures profitability of owners' investment
10. Earnings per share
Net income−Preferred dividends/Weighted-average common shares outstanding
Measures net income earned on each share of common stock
11. Price-earnings ratio
Market price per share/Earnings per share
Measures the ratio of the market price per share to earnings per share
12. Payout ratio
Cash dividends/Net income
Measures percentage of earnings distributed in the form of cash dividends
13. Debt to assets ratio
Total liabilities/Total assets
Measures the percentage of total assets provided by creditors
14. Times interest earned
Net income+Interest expense+Income tax expense/Interest expense
Measures ability to meet interest payments as they come due
15. Cash debt coverage
Net cash provided by operating activities/Average total liabilities
Measures a company's ability to repay its total liabilities in a given year from its operations
16. Book value per share
Common stockholders' equity/Outstanding shares
Measures the amount each share would receive if the company were liquidated at the amounts reported on the balance sheet
17. Free cash flow
Net cash provided by operating activities−Capital expenditures−Cash dividends
Measures the amount of discretionary cash flow
We help small and medium sized businesses recognize their full potential through efficient accounts receivables management, proper billing procedures, accurate costing of services, thorough analysis of financial statements, maximization of revenue, diversification of product offerings, and scaling down unprofitable areas of business. We provide a third-party honest point of view that helps business owners make improvements to their existing operations.
If your business could use a check-up or ongoing financial services, give us a call and we will let you know how we can help.
Accounts Receivables Management
(Also known as Accounts Receivables Factoring, or just Factoring) We want your business to succeed. We will contact customers with outstanding invoices and try to work out a payment schedule. Businesses can focus on selling their product while we take care of the billing and help you get paid.