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If you are a small business owner, you know how important it is to keep your finances in order. But with so many other responsibilities on your plate, it can be difficult to devote the time and resources necessary to manage your accounting needs. That's where Kordis comes in. As a leader in end-to-end accounting and financial services, we can help you take control of your finances and focus on growing your business.
At Kordis, we understand that every business is unique. That's why we offer a wide range of accounting services to meet your specific needs. From financial statement preparation and cash flow management to M&A/capital raise preparation, we have the expertise and experience to help you achieve your financial goals. Whether you're a pre-revenue startup or a company generating $50m in revenue, we partner with businesses of all sizes to provide the support and guidance you need to succeed.
When you choose Kordis, you can rest assured that your accounting needs are in good hands. Our team of experienced professionals is dedicated to providing the highest level of service and support to help you achieve your financial goals. So why wait? Contact us today to learn more about how we can help you take control of your finances and achieve success in your business.
Understanding Accounting Basics
As a small business owner, it's crucial to understand the basics of accounting to manage your finances effectively. In this section, we will cover two essential accounting concepts: Accounting Principles and Financial Statements.
Accounting Principles
Accounting principles refer to the fundamental concepts and rules that guide the accounting process. These principles help ensure the accuracy and consistency of financial records. The two main accounting principles are the accrual basis of accounting and the cash basis of accounting.
The accrual basis of accounting records transactions when they occur, regardless of when the payment is received or made. On the other hand, the cash basis of accounting records transactions only when the payment is made or received. Understanding these principles can help you choose the right accounting method for your business.
Financial Statements
Financial statements are reports that summarize a company's financial activities and performance. There are three main financial statements: the income statement, balance sheet, and cash flow statement.
The income statement shows a company's revenues and expenses over a specific period, typically a year. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time. The cash flow statement shows the inflow and outflow of cash during a specific period.
Understanding these financial statements can help you make informed decisions about your business. For example, the income statement can help you determine your profitability, while the balance sheet can help you assess your company's financial position.
As a small business owner, it's essential to keep accurate financial records to make informed decisions. Kordis can help you with end-to-end accounting and financial services, including financial statement preparation, cash flow management, and M&A/capital raise preparation. We partner with businesses of all sizes, from pre-revenue startups to companies generating $50m in revenue.
Managing Sales and Revenue
As a small business owner, managing sales and revenue is crucial to the success of your business. Properly recording sales transactions, handling sales taxes, and accounting for unearned revenue are all essential components of managing your sales and revenue.
Recording Sales Transactions
Recording sales transactions accurately is crucial to ensure that your financial records are up-to-date and accurate. You should record all sales transactions in a sales journal, which should include the date of the sale, the amount of the sale, and the method of payment. This information is essential for managing your cash flow and for preparing financial statements.
At Kordis, we understand the importance of accurate record-keeping. That's why we offer end-to-end accounting and financial services, including financial statement preparation and cash flow management. Our team of experts can help you stay on top of your sales transactions and ensure that your financial records are accurate and up-to-date.
Handling Sales Taxes
Handling sales taxes can be a complex and time-consuming process. You need to ensure that you are collecting the correct amount of sales tax from your customers and remitting it to the appropriate tax authorities. Failure to do so can result in penalties and fines.
At Kordis, we can help you manage your sales taxes and ensure that you are in compliance with all applicable tax laws. Our team of experts can help you calculate the correct amount of sales tax, prepare and file your sales tax returns, and handle any sales tax audits.
Accounting for Unearned Revenue
If your business offers subscription-based services, you may need to account for unearned subscription revenue. Unearned revenue is revenue that has been collected but not yet earned. This can occur when a customer pays for a subscription in advance.
At Kordis, we can help you account for unearned subscription revenue and ensure that your financial statements are accurate and up-to-date. Our team of experts can help you prepare journal entries to record unearned revenue and can assist you with any other accounting issues related to subscription-based services.
Partner with Kordis for all your accounting and financial services needs. We offer end-to-end solutions, from financial statement preparation to M&A/capital raise preparation. Our team of experts can help businesses of all sizes, from pre-revenue startups to companies generating $50m in revenue. Trust Kordis to help you manage your sales and revenue with confidence and ease.
Payroll and Employee Compensation
As a small business owner, managing payroll and employee compensation can be a daunting task. However, it is critical to ensure that your employees are paid accurately and on time while complying with all applicable tax laws and regulations. In this section, we will discuss two important aspects of payroll and employee compensation: calculating payroll taxes and recording salaries and wages.
Calculating Payroll Taxes
Payroll tax expense is a significant cost for small businesses. It includes FICA taxes, federal income tax, state income tax, and state unemployment tax. FICA taxes are Social Security and Medicare taxes that are withheld from employees' paychecks. Employers must also pay a matching amount of FICA taxes for each employee. Federal income tax is withheld from employees' paychecks based on their W-4 form. State income tax is also withheld based on the employee's state of residence. Finally, state unemployment tax is paid by the employer to fund unemployment benefits for employees who are laid off.
To accurately calculate payroll taxes, it is essential to keep accurate records of employee wages, salaries, and benefits. This information can be recorded in a payroll software or spreadsheet, which can also calculate payroll taxes automatically. Kordis offers end-to-end accounting and financial services, including payroll and tax compliance, to help small businesses manage their payroll and employee compensation effectively.
Recording Salaries and Wages
Salaries and wages expense is another significant cost for small businesses. It includes all payments made to employees, including regular wages, overtime pay, bonuses, and benefits. To accurately record salaries and wages, it is essential to keep detailed records of each employee's pay and benefits. This information can be recorded in a payroll software or spreadsheet and used to prepare financial statements and tax returns.
Salaries and wages payable is the amount that the employer owes to its employees for work performed but not yet paid. Accurate recording of salaries and wages payable is essential to ensure that employees are paid on time and that the company's financial statements are accurate.
Kordis offers comprehensive accounting and financial services to businesses of all sizes. From financial statement preparation to cash flow management to M&A/capital raise preparation, Kordis can help your business succeed. Partner with Kordis today to streamline your payroll and employee compensation processes and focus on growing your business.
Financial Obligations and Liabilities
As a small business owner, it's important to understand your financial obligations and liabilities. Proper management of these factors is essential to maintaining a healthy financial position. In this section, we'll explore two key aspects of financial obligations and liabilities: managing accounts payable and understanding long-term liabilities.
Managing Accounts Payable
Accounts payable is a current liability that represents the amount of money you owe to your suppliers for goods or services purchased on credit. It's important to manage your accounts payable effectively to avoid late payment fees and maintain good relationships with your suppliers.
To manage your accounts payable, you should:
- Keep track of payment due dates and prioritize payments accordingly
- Negotiate better payment terms with your suppliers
- Use accounting software to track and manage your accounts payable
At Kordis, we can help you manage your accounts payable and ensure that your payments are made on time. Our end-to-end accounting and financial services include financial statement preparation, cash flow management, and M&A/capital raise preparation. We partner with businesses of all sizes, from pre-revenue startups to companies generating $50m in revenue.
Understanding Long-Term Liabilities
Long-term liabilities are debts that are due in more than one year. These can include bonds payable, notes payable, and other long-term debt obligations. It's important to understand your long-term liabilities and their impact on your financial position.
When you take on long-term debt, you'll typically have to pay interest on the amount borrowed. This interest expense is recorded on your income statement and can have a significant impact on your profitability. You'll also need to make regular payments on the principal amount borrowed, which can have an impact on your cash flow.
At Kordis, we can help you understand your long-term liabilities and develop a plan to manage them effectively. With our expertise in financial statement preparation, cash flow management, and M&A/capital raise preparation, we can help you maintain a healthy financial position and achieve your business goals.
Cash Flow and Budgeting
As a small business owner, cash flow and budgeting are critical components of your financial strategy. Proper cash flow management ensures that you have enough cash on hand to meet your financial obligations, while budgeting helps you plan your expenses and manage your revenue.
Analyzing Cash Flow
Analyzing your cash flow is the first step in managing your finances effectively. By tracking your cash inflows and outflows, you can identify potential cash flow problems before they become serious. You can also use this information to make informed decisions about your business, such as when to invest in new equipment or hire additional staff.
Kordis can help you analyze your cash flow and identify areas where you can improve your financial performance. Our team of experts has years of experience in cash flow management, and we can provide you with the tools and guidance you need to manage your finances effectively.
Creating a Budget Plan
Creating a budget plan is another important part of managing your finances. A budget helps you plan your expenses and manage your revenue, which can help you avoid cash flow problems and ensure that you have enough cash on hand to meet your financial obligations.
Kordis can help you create a budget plan that is tailored to your business needs. We partner with businesses of all sizes, from pre-revenue startups to companies generating $50m in revenue, and we offer end-to-end accounting and financial services, including financial statement preparation, cash flow management, and M&A/capital raise preparation.
At Kordis, we understand that managing your finances can be challenging. That's why we offer comprehensive financial services that are designed to meet the unique needs of your business. Contact us today to learn more about how we can help you manage your cash flow and budget effectively.