Business Financial Support – The Basics
The minimal financial service any business needs is to have basic accounting records. It is not necessary to hire someone to do bookkeeping, but you want to ensure you have a proper foundation to manage your finances. Freedom Financial offers a consulting engagement to set up a basic chart of accounts and a preliminary budget, or we can help you in a more hands on manner to set up and maintain your business financial records. The basic services include creation of your chart of accounts, maintaining your accounts on a periodic basis, ensuring your business licenses and SCC status remain current, and providing the reporting required for tax preparation.
The Chart of Accounts is an accounting term used to describe the specific accounts set up for financial tracking. These accounts will include your income, expenses, assets, liabilities, and equity accounts. Each business has a unique set of accounts, but similarities exist within an industry. For example, the chart of accounts for multiple construction companies are going to be fairly similar to each other, but the accounts in a restaurants chart of accounts are likely to be quite different. Freedom Financial understands the process and will work with you to establish a chart of accounts for your business.
Determining your chart of accounts begins the process for categorizing and reporting on your business’s financial health. The next step is proper completion and tracking based on your chart of accounts.
Fixed Asset Accounting
Fixed assets include anything with a useful life that spans more than a fiscal year. Office furniture, computers, or art hung in your place of business, all these and more would be considered fixed assets. Working with you to establish a proper inventory of your assets and setting up the depreciation and amortization of your assets is key to properly accounting for these items in support of a tax return for your business. Personal Property filings are part of asset management and we will prepare and file these on your behalf as required.
Reconciling monthly statements and categorizing transactions based on your chart of account enables you to see where your business is making money and where it is spending it. For many smaller businesses it is not necessary to have reporting on a monthly basis, and this level of bookkeeping can be performed on a quarterly basis if desired. The first few months it is often necessary to gain clarification from you on how to classify certain expenses. Once we become more familiar with your business and your preferences for tracking and accounting for items, this will be simplified.
Licenses and Certification Fees
As your bookkeeping provider we will make certain all necessary business licenses, or state corporation commission fees are identified for payment and renewal. This is service we find our clients appreciate, and is part of our Basic Services package.
Basic Financial Reporting
Income Statements and Balance Sheets can be produced based on the Basic Services. The frequency of these reports can be as often as monthly and as infrequently as an annual report. The annual reports would be used to prepare your tax returns. In addition to supporting tax filing, understanding whether or not your business is on track with a proposed budget is possible with these reports.
Additional Support Services
Vendor management can be a significant effort depending on the scale and nature of your business. Our Accounts Payable support includes setting up and maintaining vendor files, understanding your payment terms, and understanding how the vendors invoicing relates to your chart of accounts.
Based on your preference you can provide us with your vendors invoices, or they can be received directly by Freedom Financial on your behalf. We will input the vendors invoices into your accounting database, reconcile the vendors statements, and prepare the checks to the vendors for your signature.
In addition to vendor invoice handling, we offer full support of subcontractor management. We will support any necessary subcontractor workman compensation filing, in addition to maintaining vendor W9 information. Maintaining, preparing and filing 1099s for qualifying vendors is also part of the accounts payable service offered by Freedom Financial Partners.
Reporting on aged payables, cash requirements, and other account payable specific reports that may be desired are also included in this level of service.
Accounts receivable support addresses your income management. Sales and Use taxes, customer management, and collections are areas of accounts receivable support Freedom Financial Partners has expertise.
Understanding the specific tax requirements based on your business is something with which we can assist you. Establishing appropriate accounts to support this is part of the Chart of Accounts process. If necessary we will calculate and file Sales and Use taxes to state and local authorities.
Customer management is an area where some businesses need some extra support. Our Accounts Receivable support includes setting up and maintaining customer files. Creating and issuing invoices, recording payments, providing customer statements, and issuing credit memos, refunds and/or adjustments per client as needed are all part of this service. We can also reconcile customer accounts with a cash receipts ledger to support how you do business with your customers.
In the event that it becomes necessary we can support you with collections proceedings, beginning with reminder notices and phone calls, and following up completely to include court filings as required/desired.
Proper Accounts Receivable management can ensure you are receiving the income you have earned. Let us help you.
After the fact Payroll Support
In the event that you choose not to use Freedom Financial to process your payroll, we can still ensure all your payroll processing is accurately accounted for in your bookkeeping. This provides a consolidated view of your business, but leaves the issuing of the payroll to you to handle. After the fact payroll support can also include handling your payroll tax filings, and W2 and W3 preparation.
Freedom Financial is prepared to handle the following license and tax filings on behalf of your business.
Sales and Use taxes (See Basic Services)
Personal Property Taxes (See Basic Services)
1099 Preparation and Filing (Accounts Payable)
Payroll Taxes (Quarterly and Annual, both State and Federal)
941 Quarterly Federal filing
940 Annual Federal filing
VA6 Annual Filing
VEC Quarterly, or Monthly Filing