Small to Medium-Sized Businesses And Their Financial Statements
Dangerous Trends in the Marketplace
- Independent research shows that almost half of small businesses (45%) employ neither an accountant nor a bookkeeper. All they’ve got to show for their business financials is their bank or credit card transactions*.
- One-quarter of small businesses (25%) still record their finances on paper, instead of doing so electronically.
- Over half of small businesses (53%) use an accounting software solution, such as QuickBooks (online and desktop, 74%), Microsoft Dynamics GP (6%), or Xero(4%).
Automation (or Not)?
- None of the software solutions listed above are able to take bank or credit card transactions and compile them into financial statements.
- All of those software solutions require time-consuming, manual assignment of bank transactions to proper accounting categories or they require human beings to “train” machines to recognize patterns in future bank transactions. Case in point –QuickBooks online, the most popular software solution on the market.
Shoebox of Receipts
- Our internal surveys indicate that accountants who take on new clients are poorly equipped to handle this issue.
- Most bookkeepers and accountants rely on Microsoft Excel’s vlookup formulas and manual sorting and filtering of clients’ data to compile their financial statements, a time-consuming and error-prone process.
- Three in five accountants we surveyed stated that they refused to do compilations for prior periods of their new clients and only choose to “do the books” on a going-forward basis.
Solution
• Glasgow Knight Financial offers financial statement compilation service to businesses and accounting service providers:
• We take clients’ bank and credit card transactions and compile them into properly prepared sets of financial statements without any other prior accounting work done by the clients.
• For clients with inventory, property, plant, and equipment, loan balances, and those who require accruals at period-end, we assist with ensuring that their balance sheet amounts are properly reflected at period-end.
We take input provided by the clients, consisting of the following:
and produce compiled financial statements, examples of which include a properly-compiled Balance Sheet and a Profit and Loss Statement. Take a look at these examples:
Pricing and Frequency of Our Work
Our pricing is straightforward and consists of:
- One-time set-up fee, and
- Per transaction fee.
- Financial statement compilations can be done for any desired reporting period (monthly, quarterly, etc.).
