Accounting & Bookkeeping Building Blocks for Financial Success Accounting vs. Bookkeeping Do you know the difference between accounting and bookkeeping? Bookkeeping is the systematic recording of amounts, dates, and sources of each revenue and expense transaction. It concerns the systems that enable financial information to be extracted. Accounting is the system established to keep track of the data and records the transaction history. It takes information obtained through bookkeeping and uses that information to analyze the results of the business. The accounting system provides the reports and information needed for management to make decisions regarding the strategic direction of the business. Building Your Future Accounting and bookkeeping are fundamental pieces of your overall financial plan - building blocks used to lay the solid foundation you need to build your business into a financially strong enterprise. Just like any structure, if your foundation is weak, your structure won’t last. Over time it will develop cracks, begin to deteriorate, and eventually crumble to the ground. Your accounting system is the same way. It is complied of small pieces that make up the financial structure of your business. If one piece starts to crack, the rest will follow. Sometimes you need a professional to assess your financial structure, testing it for strength and making suggestions for improvement, just as you would for a building. Understanding this concept is the first step, finding a trusted professional is the second. Why It Matters You spent years learning your trade, either in school or from hands-on practical education. What you probably didn’t learn was the art of reading financial statements and making sense of what each number means. Profit margin? Activity based costing? Ratios? Do you know what these terms mean? What about the numbers associated with them? Do you know how much those numbers mean to you in dollar amounts? Why do I need an Accountant? An accoutant who simply prepares financial stateIf you’ve done your own bookkeeping and ments and hands them off accounting for years, it may be difficult to the business owner is to see the need for a professional CPA or missing a major opporaccountant. Most small business owners tunity to teach and coach keep their books themselves, or have their the business owner on spouse or office manager take care of the how to understand the numbers. However, working with a CPA financial statements. It is or accountant allows a business owner to importantly to help spend less time working with the books business owners find and more time focusing on their business areas that they can make while ensuring compliance and accuracy. more efficiently through You do not have to completely turn over the way in which these your bookkeeping responsibilities when financial statements are you work with a CPA; instead, your CPA prepared. can work with you to guide you in the right direction. Why Parkhurst Consulting? If you’re going to take the next step toward building a business that has a solid accounting system you need to work with an accounting firm who concentrates on small business owners and can assist you in using your financial information to make decisions that align with your strategic plan. If truth be told, most business owners use the financial statement’s that their CPA prepares to get an idea of where the bank account balance is. The business owner generally has nothing else to do with the financial statements after that! The business owner usually has their financial statements prepared only to satisfy third parties such as a banker, so they can satisfy a loan covenant, to refinance some current debt, or to obtain either a business or personal loan. The Planning-Based Approach Parkhurst Consulting is unique in the finance industry because we not only have years of experience working with small business owners, but we are also planners by nature. Our firm philosophy is rooted in financial planning, which translates into forward-thinking accounting systems designed to provide the most comprehensive, useful financial information for a business owner. By focusing on the long- and short-term strategic goals of the business owner, Parkhurst Consulting can customize a financial plan that begins with the business’s accounting system. The planning methodology is carried throughout the length of service, and includes strategies for reducing tax liability, determining retirement allocations, and ultimately securing the future of the business. Fee-Only Services Another benefit to working with the Parkhurst Consulting firm is our “feeonly” pricing, which means we do not charge by the hour, or bill you for every phone call or e-mail. Most clients pay a monthly fee for our accounting services - there are no surprise bills. F.A.Q. Business owners who have not worked with a CPA before - and even ones who have - often have questions similar to these: Am I too small to need an accountant? You are never too big or too small to work with an accountant. We serve organizations of all sizes. I already have an accountant - why do I need you? We offer additional services, such as ratio analysis and benchmarking, that will compliment - not replace - your current financial advisor’s traditional accounting services. Are there other services your firm offers? Of course! We are a full-service CPA firm, offering services such as tax preparation, payroll, financial planning, business consulting, etc. We would be happy to discuss all of your financial needs and strategic goals for your business to determine which services would be the most beneficial. These are questions we can further detail in an initial consultation with our CPA, Brandon Parkhurst. We would be happy to meet with you at a time that is convenient to discuss your business’s financial situation and show you what we can do for you and your business. Visit our website for more information, or give us a call to schedule an initial consultation. Accounting Services • Monthly Write-Up Services - General Ledger Accounting • Accounting System Implementation • Customized Financial Statements • Complete Payroll Services • In-House Accounting Assistance • Financial Ratios & Benchmarking • Cash Flow & Budget Analysis • Computer Software Applications • QuickBooks Installation and Training 13785 Hwy 183, Ste 125 Austin, TX 78750 Office: 512.582.7500 Fax: 877.812.4050 E-mail: [email protected] www.Parkhurst-Consulting.com “Bridging the Gap Between Accounting and Financial Independence.”