Accounting & Bookkeeping Building Blocks for Financial

Accounting &
Building Blocks
for Financial
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
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
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.
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]
“Bridging the Gap Between Accounting
and Financial Independence.”