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Monthly Reconciliation & Reporting
Monthly Reconciliation & Reporting
Account reconciliation is the process of comparing transactions that you record internally for financial accounts against monthly statements. These statements are from external sources such as banks, credit card companies or other financial institutions.
Each month Beyond HR will prepare monthly reconciliation reports for all your accounts. We ensure all transactions are in their proper classifications and recorded correctly. Then, we balance and reconcile each account. We compare your internal record of transactions and balances to your monthly account statements. This is so we can verify each transaction individually. Thus, we make sure your account records agree with each other.
Keeping It In Check
Regular and proper reconciling of your banking transactions is important for many reasons including:
- Knowing how much cash you really have available in your accounts
- Avoiding checks bouncing (or failing to make electronic payments) to partners and suppliers
- Avoiding bank fees for insufficient funds or using lines of credit when you don’t really need to
- Knowing if customer payments are bouncing or have failed, and determining if any action needs to be taken
- Keeping track of your outstanding checks and following up with payees
- Making sure every transaction gets entered into your accounting system properly
- Ensuring that the actual money you are spending matches the money leaving the account and catching any possible bank errors or fraud
Reconciling your accounts also helps you identify any internal issues that might need resolving. For example, you might need to reevaluate how you handle cash flow and accounts receivables.
Once all account reconciliations have been completed, Beyond HR will prepare monthly financial reports with profitability analysis. A business’ financial statement speaks volumes about its financial health. Primarily, the sources of a company’s revenue, how much money it is spending, it’s assets and liabilities and how it manages its cash flow. Timely and accurate financial data is necessary and critical in order to make smart business decisions. Each month, we provide clear and accurate monthly reports. Hence, you can easily hand them over to investors, tax preparers, and anyone else who may need access.
Beyond HR Reporting
Our Beyond HR monthly reports include:
A Profit & Loss Statement
(aka Income Statement)
a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period. Usually this is a month, fiscal quarter or year. Think of the Profit and Loss Statement as your business’s report card. It will show how profitable your business is. Additionally, it highlights areas for improvement and increased profitability. Investors will use your Profit & Loss Statement to assess the level of risk when extending credit or capital. However, your Profit and Loss Statement can’t tell you whether your overall financial condition is weak or strong. Nor can it tell you how cash is moving in and out of your business. That is why Beyond HR will also provide a Balance Sheet and a Statement of Cash Flows.
A Balance Sheet
use of the accounting equation to show a financial picture of the business on a specific day. A Balance Sheet lists all of the assets that a company owns as well as the debt the company owes. As well, it shows the owner’s interest or ownership share in the company. The Balance Sheet is like a window into the financial strength of your business. It summarizes key financial information on a given date and is a good indicator of a company’s stability and liquidity.
A Statement of Cash Flows
a financial statement that provides cumulative data regarding all cash inflows a company received from its ongoing operations and external investment sources. Additionally, all cash outflows that pay for business activities and investments during a given period. This statement also measures how well a company manages its cash. Meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.