Bookkeeping

 

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.

Financial Services

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.

  

I. Liquidity

   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

II. Activity

   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

III. Profitability

   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

IV. Coverage

 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

 

 

Financial Services
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.

 

 

© 2008 by Downing Street Financial, Inc.

17025 Mt Rose Hwy C

Reno, NV 89511

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