Bookkeeping and financial reports tend to be a tedious task for the busy business owner. There just isn’t enough time in the day to handle bookkeeping effectively, while at the same time focusing on revenue generating activities, purchasing, and managing employees.
Yet making precise and efficient decisions regarding money is absolutely paramount to maintaining a successful business. Understanding when to reduce purchases, pull back on labor and increase sales on slow days based on sales trends. With accurate bookkeeping this can be done without the guess work.
At Back Office Solutions, we work with a variety of owners in the hospitality industry located in New York City. As their bookkeepers, we work to educate them on emerging trends and opportunities dealing with financials. We are always looking for ways we can help our clients’ improve their record keeping and help them feel completely confident with their numbers.
There are two types of accounting:
- Cash Basis Method
-Recording revenue when cash, checks and credit card batches are received
-Recording expenses when checks clear the bank account and credit card charges are posted
Accrual Basis Method
-Recording revenue when it is earned
-Recording expenses when the expense occurs, not when the cash is paid
As you can see, there are two distinct types of bookkeeping methods. For owners who use Cash Basis, it’s tough to adjust to sales trends and purchases, as the data was recorded when revenue was deposited into the bank and expenses were not recognized until payment had been made. Accrual Basis on the other hand, allows business owners to adjust based on sales, expenses and labor, since the data is recorded as it occurs.
The choice is yours. Either way, keeping accurate financials at all times is not only smart business, it’s necessary business. On any given day, you can be audited:
A Worker’s Compensation Audit requires accurate payroll records and general ledgers
A Sales Tax Audit requires accurate sales numbers
If this happened to you tomorrow, would you be prepared? Back Office Solutions can be your partner in financial reporting, allowing you to focus on running your business, while we focus on the numbers.
Right now, can you pull up your business balance sheet and easily see what you owe? Loans, Lines of Credit, Accounts Receivable, Accounts Payable, etc. Accurate financials are crucial to business success. We would not recommend going into business, or running an existing one, without this part being handled correctly.
Lastly, when applying for a loan or looking for investors to fund your growing business, you will be asked for financial data: Profit & Loss, Balance Sheet, Cash Flow, etc.
When you outsource your bookkeeping to Back Office Solutions, you are gaining peace of mind. With just a call or email, the financial reports you need will be on your desk before you go to lunch.
If now is the time to implement or revamp your accounting system or procedures without the huge expense of hiring and managing, give us a call at 718-412-2570 or email email@example.com. Back Office Solutions are your bookkeeping experts in the foodservice industry. Let us take one thing off your plate.