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YOU and “UNCLE SAM” The Year End is the Perfect Time to Fine Tune your Business’s Bookkeeping By Dira Creek, MBA Accounting & Management Practical Individual, Small Business, Corporate As 2013 approaches, it’s a good time to review the FOUR major components for successfully running a business:

Cash Management Bookkeeping & Accounting Business Management Internal Organization For any sized organization—from a sole proprietorship to a large company—to survive and flourish in today’s ever-changing business environment, all four of these components need to be understood and well managed. Recording financial transactions accurately and on a timely basis is imperative to effectively manage your business. Maintaining your accounting records helps management evaluate and track income and, as important, track expenses related to the day-to-day operation of your business. Often, management spends too much time tracking revenue streams, but is not fully aware of all of the expenses related to the running of their business. Further, all companies need to fully understand the related local, state and federal govern-ment rules for their type of industry.

Increased revenue doesn’t always mean increased net income if the company’s expenses are growing at a faster pace than revenue growth It is best to record every eligible business expense to get an accurate picture of the bottom line income. Increased revenue doesn’t always mean increased net income if the company’s expenses are growing at a faster pace than revenue growth. The net income (as a percentage of revenue) will be less than it was prior to the revenue growth. These transactions, which can be purchases, sales, receipts and payments should be recorded in the correct ledger to create a proper accounting reporting in the form of an income or profit and loss statement, and then a balance statement should be pre-

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pared reflecting the true financial position and cash flow, and identifying the status of cash actually available. Accurately preparing accounting financial information by someone with a sound and experienced understanding of Generally Accepted Accounting Principles (GAAP) is critical in preparing the year end financial.

The following provides a short overview of the fundamentals: • Fundamental of Business Management: A/R, A/P, and G/L analysis • Fixed Assets and Depreciation • Bank Reconciliation • Cash/Treasury Management • Monthly Closing & Financial Analysis • Financial Reporting and Analysis • Payroll and Personnel Management A good, trustworthy accountant and bookkeeper, both internally and/or if outsourced through a Financial Business Consultant, Bookkeeper, MBA or CPA, will help you with the preparation and compilation of your financial statements, tax form filings and all required tax returns. NEXT ISSUE: How a company’s Internal Organization can bring the whole picture together for successful business practices in today’s world. Dira Creek, MBA Tel: 310-770-4888 Email: info@accomptant.com Website: www.accomptant.com

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Beverly Hills Times Magazine - Sexy, Talented & Unforgettable  

The Beverly Hills Times Magazine is a door-to-door, monthly publication catering to an upscale clientele. We offer readers an up close and i...

Beverly Hills Times Magazine - Sexy, Talented & Unforgettable  

The Beverly Hills Times Magazine is a door-to-door, monthly publication catering to an upscale clientele. We offer readers an up close and i...

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