Small businesses in Brooklyn, NY, often need different types of accounting services to help them efficiently manage their business. CPA firms offer a variety of Brooklyn, NY accounting services that can be tailored to meet the specific needs and requirements of a small business. Utilizing the right accounting firm and their services will help businesses increase profitability and minimize taxes.
The following are the main accounting services required by small businesses in Brooklyn, NY:
General ledger review and maintenance
A small business in Brooklyn, NY, will require a qualified CPA to prepare its general ledger. A Brooklyn accountant will help review the business’ accounts payable, accounts receivable, and inventory. This will ensure the accuracy of financial records, and they will be required to maintain the general ledger by posting transactions into it and reconciling bank accounts, given that such information has been tracked in journals.
Bank account reconciliation
Small businesses in Brooklyn will require an accounting firm to reconcile their bank accounts. This is important as it helps the company to account for bank transactions, check for errors, and track any missing or unnecessary items. Errors discovered during the reconciliation of bank accounts can be detrimental as they can result in losses that can be avoided.
A small business in Brooklyn will require a CPA to prepare an income statement. The prime objective of the income statement is to make sure that the company’s financial information is presented in a systematic and readable manner. This provides an insight into how the company is performing on a monthly, quarterly and annual basis. Another purpose of the income statement is to provide relevant and useful information regarding sales, gross profit, operating expenses, operating income, net income, and cash flows for analysis purposes.
A small business will require a Brooklyn accounting firm to prepare a balance sheet. The prime objective of this statement is to demonstrate the composition and value of the company’s assets and liabilities, given that it provides an analysis of what the company owns and owes. This is important as it demonstrates the financial position of a business, given that a comparison between assets, liabilities, and equity can be made. The statement also reveals whether or not there are any short-term, long term, or current assets.