4 Accounting Oversights That Could Put You Out of Business
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4 Accounting Oversights That Could Put You Out of Business

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Learn the 4 accounting oversights that have caused countless small business owners to go out of business.

Learn the 4 accounting oversights that have caused countless small business owners to go out of business.

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4 Accounting Oversights That Could Put You Out of Business 4 Accounting Oversights That Could Put You Out of Business Presentation Transcript

  • 4 Accounting Oversights That Could Put You OUT OF BUSINESS Smart Accounting Services 770.783.5214 info@smartaccountingllc.com www.smartaccountingllc.com
  • Are You Living The Dream? As a business owner you have the freedom to be flexible, control your future and leave a legacy for many years to come. Business Ownership is exciting, fun and rewarding!
  • The Dream Killers Failing to Monitor Cash Flow Confusing Cash Available with Profit No Internal Controls Procedures Not Relying On Expert Help
  • Failing to Monitor Cash Flow How do you keep track of your current balance, open invoices, past due bills, total expenses, and profitable services and products for your business. Your Bank Statement? INCORRECT! Reviewing the business bank statements does not clearly identify how much cash is truly available. Failure to properly monitor the flow of your cash can be detrimental to the success of the business. Successful cash management places the business in the position to propel to the next level. Proper cash management allows the owner to understand the health of the business, and then use this information to make wise and informed business decisions.
  • Failing to Monitor Cash Flow Simple Cash Flow Formula Subtract the amount of cash available at the beginning of a period from the amount of cash available at the end of the period. A negative cash flow is when the amount of cash available at the end of the period is lower than the amount of cash at the beginning of the period. Monitor Cash • Weekly • Monthly • Quarterly Benefits of Monitoring Cash Flow: • Catch & Prevent Errors and Mistakes. • Catch gaps in outgoing & income cash. Having an accurate accounting system in place will enable you monitoring your cash flow quickly.
  • Confusing Cash Available with Profit PROFIT is the money left over after the company has subtracted the revenue from the expenses. VS. CASH is the money remaining after the beginning cash has been subtracted from the ending cash amount.
  • Confusing Cash Available with Profit Profit is the money left after the expenses are paid. Cash flow is what has happen between the beginning cash amount and the ending cash amount. NOTE: When determining cash flow (cash available) you will also factor in any accounts receivables (invoices that have not been paid yet), inventory and depreciation expense. Note: Just because a business has lots of money doesn't mean that it is profitable, conversely a business can be profitable but not have cash. Note: If you are reviewing your Profit & Loss statement and you see that you have a net profit that DOES NOT mean that is the amount of money you currently have to operate your business with (or spend).
  • No Internal Controls Procedures Internal Controls are procedures put into practice to help achieve the objectives of a company. These objectives could be related to financial success, business operation, and customer satisfaction. Benefits of Internal Controls • Having internal controls encourages efficiency • Eliminates potential fraud and abuse, and compliance with the company and industry laws and regulations. • Strong internal controls focus on addressing and preventing future problems. • Acts as a firewall against theft and fraud, saving the owner money, time and a costly headache.
  • Not Relying On Expert Help Relying on the help of an expert could mean the difference between success and failure. Small Business Success Experts: • Accountants • Business Attorneys To prevent costly problems, streamline the operation of the business and increase their chance for maximum success….. Partner with an experience attorney and accountant from the beginning of business birth.
  • Congratulations! You should now know:  4 Ways to Prevent Business Failure Time to put your knowledge to work! Good luck! Your next step:  Create & Implement Internal Controls  Partner with an accountant and attorney  Monitor your cash flow monthly or weekly
  • Smart Accounting Services is a virtual accounting firm that specializes in profit increase strategies and business development for service based businesses. Smart Accounting Services was founded by Octavia Conner also know as the Profit Increase Queen, offering personalize bookkeeping, controller and QuickBooks services. SAS services are designed to help business owners identify the language of their business then use these key performance indicators to facilitate explosive growth. Schedule your free consultation today. info@smartaccountingllc.com smartaccountingllc.clickbook.net 770.783.5214
  • 3707 Main Street Suite 2, College Park GA 30337 770.783.5214 info@smartaccountingllc.com www.smartaccountingllc.com