Many small businesses only get professional bookkeeping done in order to comply with legal requirements associated with the filing of income tax returns. There is no doubt that bookkeeping is central to all types of tax preparation. However, bookkeeping services have a bigger scope than this.
There are many financial details presented by professional bookkeeping services that are of great significance for businesses. In this post, we are going to discuss three financial reports that are furnished by a professional bookkeeping service for any small business. The importance of these financial reports will also highlight the wide-ranging benefits of getting a professional bookkeeping service on board.
1) Income Statement
Income statements don’t just tell you how much money your business has made. An income statement furnished by any professional bookkeeper accounts for all the cash inflows and outflows of your commercial operation. An income statement can give you a glimpse of all your earnings and expenses. Expenses related to travel, monthly bills, and marketing along with the size and source of your fortune—all this will be summarized in an income statement compiled by any professional bookkeeping service.
With a detailed income report, you are able to identify the money sinkholes and as well as the avenues that are bringing you a fortune. In short, a better future business strategy can be made using a well-prepared income statement.
2) Account Receivable Aging
Account receivable is a financial report furnished by professional bookkeeping services that tell you how your business is faring on the collection side. This report actually enlists all the unpaid client invoices and unused credit notes along with dates. This financial report is crucial for several reasons.
- It can provide you with a clear picture of how much money you actually have in the receiving column.
- You can better streamline and prioritize your collection process with this information.
- You can choose future clients.
3) Customer Sales Report
For small businesses, every customer is important. So, it becomes really important for them to know how much every one of their clients is contributing to their businesses. A customer sales report just provides you with that information. You can customize your CRM practices with the help of data furnished in customer sales reports. Professional bookkeeping services can furnish customized customer sales reports for small businesses.
My Count Solutions is an online professional bookkeeping service that particularly helps small businesses with managing their finances. Their bookkeeping records consist of all the important financial information a small business can need to streamline its operations and you can use My CPA Dashboard platform for accounting automation.