Complete Guide to Accounting Services From The Whitlock Co.

An accountant can make a huge difference in your business, from a startup experiencing exponential growth to a legacy manufacturer going through succession planning.

Accountants have a wealth of knowledge regarding financial statement preparation, tax planning and preparation, auditing, consulting on financial matters, and assisting with compliance with accounting regulations.

Considering the average annual salary of an accountant is $80,000, you could save a bundle of money while having a financial expert on your side, thanks to our accounting plans starting at $1,500 a month.

Read our guide to the accounting services provided by The Whitlock Co. to understand how we help your business grow.

Transaction Recording

One of the core tasks we perform is recording daily financial transactions, such as documenting sales, purchases, payroll, receipts, and payments. Having this done daily ensures that your company’s financial records will be accurate and up-to-date.

Knowing these updated numbers is critical to planning your company’s future and for tax time. But the benefits of transaction reporting go beyond having the financial numbers at your fingertips.

Process

Our accountant will set up accounting software that compiles your transactions into an up-to-date ledger that ensures each entry reflects the correct account and amount. For instance, when a company pays a vendor, the payment reduces its cash account and decreases its accounts payable. Every entry follows the double-entry accounting system, maintaining the balance of debits and credits.

Example

Imagine you’re a coffee shop owner who tracks daily sales and expenses. Each time a customer makes a purchase, the point-of-sale system records the transaction, automatically categorizing it as revenue. When the owner buys supplies, the transaction is logged as an expense.

At the end of the month, the owner reviews the ledger to see the total revenue, operating costs, and net profit. This data helps determine whether the shop can afford new equipment or needs to adjust pricing strategies.

Other Benefits

The benefits of precise transaction recording extend beyond financial clarity. It ensures compliance with legal requirements, such as tax filing and reporting obligations. Accurate financial reporting builds trust with investors, lenders, and stakeholders, who rely on accurate financial statements to assess the business's health. The Whitlock Co. can ensure your financial numbers are accurate daily.

Account Reconciliation

Account reconciliation occurs when we examine your company’s internal records with external bank statements to make sure they are accurate. Reconciliation can help identify discrepancies, errors, or omissions in the financial records and verify that all accounts are balanced.

Process

Our team begins with the identification of accounts that require verification, such as cash, accounts receivable, or accounts payable. We then review transactions recorded in the internal ledger and cross-reference them with external statements. Any mismatches, such as unrecorded bank fees or customer payments, are investigated and corrected promptly. This active review safeguards against financial misstatements and fraud.

Example

If you’re a small retail store, this is how reconciliation would work. At the end of each month, our accountant will reconcile the bank account by comparing your internal ledger entries, which include recorded deposits and expenses, to the bank statement.

During the reconciliation, the accountant notices that a check issued to a supplier has not been cleared. They confirm the check details with the supplier and adjust your financial records accordingly. Your internal records would now match the cash balance, thereby reflecting your company’s actual financial position.

Other Benefits

The benefits of account reconciliation are more than just finding errors. It enhances decision-making through reliable and accurate financial data, enabling businesses to allocate resources effectively. Reconciliation can help you detect fraud or unauthorized transactions, offering an additional layer of financial security.

Expense Management

Your accountant from The Whitlock Co. can manage and categorize business expenses to verify that all expenditures are recorded appropriately. The goal is to make sure your company remains financially efficient and profitable.

Proper expense management helps your business minimize waste, improve budgeting accuracy, and maintain profitability. You can identify cost-saving opportunities, align spending with financial goals, and ensure that resources are used effectively.

Process

Our process starts with your budget for various tasks, such as equipment maintenance or marketing. Expense management helps you track the money you spend within planned limits. You can make informed decisions and adjust your strategies when necessary.

Example

A real-world example comes from a high-end marketing agency. At the beginning of the fiscal year, the agency’s finance team sets a budget for advertising, salaries, software tools, and other operating costs.

As the year progresses, they track monthly expenses through their accounting system with the help of their accountant from The Whitlock Co. If the agency notices that its advertising expenses are exceeding the budget, it may revise its marketing strategy or look for more cost-effective platforms.

Other Benefits

The benefits of effective expense management go beyond a budgetary snapshot. You can optimize cash flow, reduce unnecessary costs, and allocate funds to areas that support growth. It also enables better financial forecasting and prepares your business for unexpected costs, improving your ability to adapt to changes in the market.

Expense management is also crucial for filing income taxes. Various business expenditures offer tax deductions. Equipment purchases, hiring staff, upgrading software, and travel expenses all have various ways they can help lower your tax liability. Having an accountant can help you get the best tax position with expense management.

Financial Reporting

Accurate financial reporting provides a detailed overview of your company’s financial performance and position while fostering business transparency, regulatory compliance, and strategic planning. It allows businesses to communicate their financial health to investors, creditors, and regulatory bodies. Knowing your current financial status helps you make informed decisions about your company.

Process

The Whitlock Co. prepares key financial statements, including the income statement, balance sheet, and cash flow statement. The income statement outlines your company’s revenues, expenses, and profits over a specific period. The balance sheet provides a snapshot of the company’s assets, liabilities, and equity at a given point in time.

The cash flow statement tracks the inflow and outflow of cash, showing how well a company manages its cash position. Together, these statements give a comprehensive view of the company’s financial standing.

Example

Perhaps you are a technology startup preparing for investor meetings. Your accounting team from The Whitlock Co. compiles the income statement to show its revenue growth, the balance sheet to demonstrate its assets and liabilities, and the cash flow statement to reveal how it is managing its cash reserves.

You’ll have a solid footing to show potential investors your current performance, helping them assess risk and make decisions about whether your company is a good investment.

Other Benefits

The benefits you see from financial reporting are more than just numbers for investors. Accurate reports can meet legal and regulatory requirements, such as tax filing and compliance with financial reporting standards. Owners rely on these reports to assess operational efficiency, forecast future growth, and identify areas that require attention, such as rising expenses or declining profits in order to make informed decisions.

Tax Preparation & Filing

We can prepare and file tax returns, which does more than just save you time when you need to compile information and file taxes every year. Our team can identify eligible deductions and credits to minimize tax liabilities and optimize your tax position, which can save you money.

Process

We start by organizing and reviewing financial records. This is where monthly account reconciliation and expense management come into play because our team uses these documents, coupled with previous tax returns, to prepare for the annual filing deadline.

The Whitlock Co. will determine the amount of income, deductions, and credits eligible for tax purposes. We will calculate the total tax liability based on current tax regulations and then file taxes on your behalf.

Example

Let’s say you’re a small business owner. At the end of the calendar year, we will compile and review financial records, including revenue, expenses, and deductions. Then, we examine tax credits your company might qualify for, such as deductions for employee wages, business expenses, or equipment depreciation. Once the taxes are calculated, the tax preparer files the returns on behalf of the business with the IRS and state agencies.

Other Benefits

The benefits of tax preparation are more than just filing them on time to avoid penalties. Having an accountant in your corner helps businesses get the most out of their tax liabilities. It can also help with financial planning when you incorporate tax planning throughout the year moving forward.

Reach Out to The Whitlock Co.

Do you think you need an accountant to help manage your company’s finances? Don’t think you can afford one? An affordable accountant on your side can help your company in several ways. Contact our team to request a consultation today.