What is monthly accounting?
The monthly accounting is the procedure of gathering, recording, classifying, and compiling the financial events, called transactions, that occur in a business, small or large within a month period.
What if my business is new? Do I need to perform monthly accounting?
If your business is just starting, it might only have a few transactions. In this case, quarterly accounting would be more suitable for your business. However, start ups are expected to experience significant growth within the first two years. As a result, the business accounting should be performed on a monthly basis.
Why does your business need monthly accounting?
The management of a business monthly accounting provides several benefits:
- Evaluate the business performance. This performance is accomplished y reviewing the profit and loss statement to find out if the business is being profitable or is losing money.
- Perform variance expense analysis to evaluate the behavior of certain costs as an opportunity for cost reductions, inaccuracies, etc.
- Perform key performance financial indicators (KPIs). This way, the company can provide a true performance evaluation of a business by calculating ratios, such as the level of liquidity, solvency and profitability of an organization. Also, which customers are the most profitable, which department is performing at the optimal level desired, profit margin per product, etc.
How much does monthly accounting cost?
Our monthly accounting price starts with $300 minimum and it increases with the number of bank and credit cards, as well as the volume of transactions that the business has.
Are there any contracts involved?
There is no contract involved as it is a month to month service. We do require that the business sign our engagement letter which defines the scope of our services, responsibilities, payment terms, our methodology, among others.
What’s involved in the monthly accounting?
Our monthly accounting involves producing financial reports that provides direction to a business to make strategic business decisions. Our goal in managing the monthly accounting is beyond the number crunching of registering the transactions of a business.
We request the client to meet with us once per month to go over the financial results, strategic ideas for growth and development of the business, cost saving ideas, tax planning, among others.
What if I never performed monthly accounting and it’s the end of the year?
We are flexible enough to accommodate a client who needs an annual accounting compilation. In this case, we gather and classify all the transactions for the year.
Is there a particular methodology to perform the monthly accounting?
Whether we need to develop a strategic business plan, perform financial analysis, recreate the entire accounting system, file taxes in arrears, our detailed approach enable us to save time and allocate resources efficiently.
- Discovery: This phase involves the consultation step which includes the interview process to determine the specific needs of the business. We listen attentively to make sure we understand our clients’ pain points with the intention of offering possible solutions to remedy the situation.
- Planning: We lay out and develop the plan of action that will help us be the most efficient and productive to produce the work without compromising quality.
- Processes and Systems: We have standardized processes and automation in place to produce our work while eliminating wasted effort. This way, we have clear direction of how to get from where our clients are to where they want to be.
- Implementation: In this step we execute our plan while maximizing time and resources to achieve the desired results and to follow through our promises to our clients.
- Measurement: Once the work has been completed, we review the results with the client, provide feedback and make the necessary recommendations for change or improvement.
What documents do I need to provide?
We prefer to have accountant access to the financial institutions, but if the client is not comfortable with this idea, we request statements of all financial accounts, credit card(s), bank(s), line of credit, and loan(s).
How soon after the month ends will I receive monthly financial reports?
We do our best to provide monthly reports within the next 12 days after the month ends. We then review and discuss with the client.