Monthly Accounting


One area of continual problems with small businesses is that of accounting. Here are some of the problems I have encountered with accounting:

Not utilizing an accounting system, whereby the owner uses the information to assist him/her in running the business.

  1. Not a good separation between the business and personal. I.E. a separate checking account.
  2. Not a good separation between the business and personal. I.E. a separate checking account.
  3. Not paying attention to the accounts payable. Accounts are not being pursued actively when they go over 60 days delinquent.
  4. Payroll not being entered correctly.
  5. The capital section not reflecting the owner’s/shareholder’s equity.
  6. Personal taxes being used as a business expense.
  7. Auto expense not being properly entered.

My goal is to assist business owners to utilize their accounting systems to maximize their company information. In this way, I assist them to make timely critical decisions regarding their business. This can be as simple as data entering, to balance sheet / profit and loss / cash flow analysis. This breaks down to the following:

  1. General ledger accounting: data entering, adjusting journal entries, reconciling bank accounts, reviewing the debt structure to see that the debt is correctly booked.
  2. Reviewing the capital structure of the corporation:
    1. Stock
    2. Dividends
    3. Treasury stock
  3. Financial statement presentation: I compile financial statements for businesses.

When company owners want me to come in and do all of the above, I then step into the role of a part time controller. Many owners like this, because a CPA has looked at their books, without the burden of a full time employee.