Accounting & Bookkeeping services for small-and-medium sized Businesses in Michigan, USA
As accountants, we enjoy working with numbers, but as small-and-medium sized business owners, you may not share the same enthusiasm as we do. You started your business because you had a great product or service, probably not because you were eager to do bookkeeping or accounting for your business.
Tasks such as bookkeeping, recording financial transactions, financial statement preparation, payroll processing, financial analysis, budgeting, and forecasting are critical to maintaining the financial health of your organization.
At GKR And Associates, P.C., our professionals will help you successfully manage these functions, allowing you to focus your limited time and resources on growing your business. We provide customized reporting and individualized advice to help your business maximize its growth potential and maintain financial organization.
We are here to do accounting and bookkeeping for you!
Our firm offers a full range of cost-effective accounting and bookkeeping services, including:
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Financial Statement Preparation
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Bookkeeping Services
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Accounting System Setup for New Businesses
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Reconcile your Book to your Bank Balance
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Clean up your general ledger
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Provide Unlimited Consultations
A. Financial Statement Preparation
Accurate financial statements show lenders and grant providers how your business is doing financially and they make applying for loans or grants easier. With clear financial statements, lenders can see that you’re a good risk to lend money to. We offer monthly or quarterly QuickBooks accounting services including preparation of your business's profit and loss statements, balance sheets, and cash flow statements to analyze your cash situation. Let's get it started. If you're ready, we're here to help you!
Financial statement preparation involves compiling and presenting financial information in a structured format. This information typically includes an income statement, balance sheet, and cash flow statement.
These statements provide a snapshot of a company's financial performance and position, which is important for stakeholders such as investors, lenders, and management to assess the company's financial health and make informed decisions to ensure accuracy and compliance.
- (1) Income Statement An income statement, also known as a profit and loss statement, is a financial statement that summarizes a company's revenues, expenses, and net income over a specific period, such as a quarter or a year. The income statement provides valuable insights into a company's financial performance and profitability. The income statement allows you to:
- Evaluate Profitability: By comparing revenues to expenses, you can assess the profitability of your business over a specific period of time.
- Monitor Performance: The income statement helps you track how well your business is performing financially. It provides insights into areas where you may need to improve or where you are excelling.
- Make Informed Decisions: The income statement provides valuable information that can help you make informed decisions about pricing, expenses, and investments in your business.
- Track Trends: By comparing income statements from different periods, you can identify trends in your business's financial performance and make adjustments accordingly.
- Attract Investors & Lenders: Potential investors and lenders often review income statements to assess the financial health of a business before making investment or lending decisions.
- Comply with Tax Requirements: The income statement is essential for calculating taxable income and complying with tax reporting requirements.
- Overall, the income statement is a critical financial document that provides valuable insights into your business's financial performance and helps you make informed decisions to drive growth and profitability.
- (2) Balance SheetA balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, usually at the end of a fiscal quarter or year. It presents a summary of the company's assets, liabilities, and shareholders' equity.
Preparing an accurate balance sheet is important for several reasons, including:
- Financial Health Assessment: It provides a snapshot of a company's financial health at a specific point in time, showing its assets, liabilities, and equity. This information helps stakeholders assess the company's ability to meet its financial obligations and its overall financial stability.
- Liquidity Analysis: The balance sheet helps determine a company's liquidity, or its ability to meet short-term obligations. By comparing current assets to current liabilities, stakeholders can assess whether a company has enough liquid assets to cover its short-term debts.
- Debt Management: It helps in analyzing a company's debt levels and debt-to-equity ratio, which indicates the proportion of debt used to finance its operations compared to its equity. This information is crucial for creditors and investors to assess the company's financial risk.
- Investor & Creditor Decision-Making: Investors and creditors use the balance sheet to make decisions about investing in or lending to a company. A strong balance sheet with healthy assets and manageable debt levels is more likely to attract investors and creditors.
- Performance Evaluation: It provides a basis for comparing a company's financial performance over time. By analyzing changes in assets, liabilities, and equity, stakeholders can assess whether a company is improving its financial position or facing challenges.
- Regulatory Compliance: Companies are required to prepare and disclose their balance sheets as part of their financial reporting obligations. Compliance with accounting standards and regulations ensures transparency and accountability to stakeholders.
- Strategic Planning: The balance sheet helps management make informed decisions about the company's future, such as expansion, acquisition, or capital investment. It provides insights into the company's financial resources and constraints.
- Overall, the balance sheet is a crucial financial statement that provides valuable insights into a company's financial position and helps stakeholders make informed decisions about the company's future.
- (3) Cash Flow Statement A cash flow statement is a financial statement that provides an overview of the cash inflows and outflows of a business during a specific period of time. It helps to analyze the liquidity and financial health of a business by showing how changes in balance sheet accounts and income affect cash and cash equivalents. It reflects the cash inflow and outflow due to operating, investing, and financing activities. The cash flow statement is important because it helps stakeholders, including investors, creditors, and management, understand how a company's operations are generating and using cash. It provides insights into a company's ability to meet its obligations, pay dividends, and invest in future growth.
B. Bookkeeping Services
Bookkeeping is the process of recording financial transactions and maintaining financial records for a business. Handling bookkeeping yourself can be overwhelming and time-consuming. Having accountants handle your bookkeeping means your financial records are accurate and up-to-date. We can do your bookkeeping in QuickBooks to make tax time a breeze for you. With current and accurate records, you can quickly gather all necessary documents and information when it's time to file taxes. This ensures you don’t miss out on deductions or credits and simplifies the tax filing process, saving you time and potentially reducing your tax liability.
Bookkeeping tasks typically include:
- (1) Reconciling Accounts This involves ensuring that the balances in the company's records match the balances in bank statements and other financial statements.
- (2) Managing Accounts Receivable & Accounts Payable This involves tracking money owed to the company by customers and money owed by the company to suppliers and other creditors.
- (3) Recording Transactions This involves recording business transactions, such as income, expenses, invoices, and receipts. We can track your transactions for your business.
C. Accounting System Setup for New Businesses
Are you starting a new business and need help with accounting or bookkeeping? If you don’t have accounting staff or if your current system isn’t good enough, we can set up your accounts in QuickBooks. We’ll handle everything, like tracking your income and expenses, creating invoices, and managing your bank accounts. Once QuickBooks is set up, you can either have your accountant do the bookkeeping or let us take care of it for you monthly or quarterly.
We are available to assist you in performing the key steps involved in setting up an accounting system for a new business, including:
- (1) Choose an Accounting Method Decide whether to use cash or accrual accounting. Cash accounting records transactions when cash is exchanged, while accrual accounting records transactions when they occur, regardless of when the cash is exchanged.
- (2) Select Accounting Software Choose accounting software that meets your business needs. Popular options include QuickBooks, Drake, Xero, and FreshBooks.
- (3) Set Up a Chart of Accounts Create a chart of accounts to categorize your income, expenses, assets, and liabilities. This will help you organize your financial information and track your business's financial performance.
- (4) Establish a Bookkeeping System Determine how you will record and track financial transactions. This may include setting up a system for invoicing, tracking expenses, and reconciling bank statements.
- (5) Implement Internal Controls Establish internal controls to protect your business from fraud and errors. This may include segregating duties, regularly reviewing financial records, and implementing security measures for financial data.
- (6) Determine Tax Obligations Understand your tax obligations and set up a system for collecting and remitting taxes. This may include registering for a tax identification number and keeping track of tax deadlines.
D. Reconcile your Book Balance to your Bank Balance
Is reconciling your book balance to your bank and credit card statements messy and time-consuming for you? We can periodically reconcile your bank and credit card statements to your book balances. Reconciling your bank and credit card statements helps detect fraud by ensuring that all transactions match your records. If there's a transaction you didn't make, you'll spot it quickly. This way, you can catch any unauthorized charges and address them right away, keeping your finances safe. You can sleep more peacefully at night knowing your bank accounts and credit card statements are reconciled and all escrow funds, accounts, checks, and disbursed funds are properly accounted for each month ensures the following business benefits:
- (1) Accuracy Ensures the accuracy of your financial records by identifying and correcting errors, such as incorrect entries or missing transactions.
- (2) Fraud Detection Helps detect unauthorized transactions or fraudulent activity, such as unauthorized withdrawals or forged checks.
- (3) Cash Flow Management Provides an accurate picture of your cash position, helping you manage your cash flow more effectively.
- (4) Decision-Making Provides reliable financial information for making informed business decisions, such as whether to invest in new equipment or expand operations.
- (5) Compliance Ensures compliance with accounting standards and regulations by maintaining accurate financial records.
- (6) Audit Readiness Prepares you for audits by providing a clear trail of financial transactions and supporting documentation.
- (7) Financial Health Provides insights into your financial health, such as identifying trends or areas where you can improve efficiency.
- (8) Protect Yourself By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent, or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.
- (9) Sleep Better You will sleep more peacefully at night knowing your bank accounts are reconciled, and in balance, and that all escrow funds, accounts, checks, and disbursed funds are properly accounted for.
E. Clean up your general ledger
Is your QuickBooks a mess and causing you headaches? Don't worry, we can help you clean it up! We'll review your accounts, fix any errors, and ensure everything is organized and accurate. Whether it's unrecorded transactions, misclassified expenses, or messy bank reconciliations, our team will tidy it all up. Once we complete the cleanup process, we will reconcile your accounts again to ensure that all errors and discrepancies have been corrected. With clean and accurate books, you'll have a clear picture of your income, expenses, assets, and liabilities, making it easier to manage your business and plan for the future.
F. Provide Unlimited Consultations
To provide value-added services to our clients and build stronger relationships with them, we always provide unlimited consultations. It allows us to be more proactive in addressing our clients' financial concerns, leading to their satisfaction. We can meet with you in person or via a virtual meeting monthly or quarterly basis, or once a year, as needed.