Develop relationships with a reliable and capable bookkeeper, CPA, banker, attorney, financial planner, and investment advisor. Meet regularly with each to identify customized needs, develop strategic financial plans, and communicate goals amongst all team members. Review strategic goals regularly, and ensure efforts to attain them are monitored and measured.
Operate as the most efficient ownership structure according to your type of business, number of owners, and financial situation to avoid risk.Take advantage of the appropriate investment vehicles and tax planning options. Consolidate and make available all corporate documentation, and ensure the behaviors of the owners/members are guided by the established corporate protocols and agreements.
Applications & Tools
Use a robust accounting software application to keep books and manage finances. Configure the accounting software to meet your business needs; utilizing functionality to produce customized reporting. Bank with financial institutions that offer full featured, secure online reporting and bill pay services. Export and import financial data between financial institutions and the accounting software application for efficient and accurate management.
Documentation & Data
Develop a policies and procedures manual that includes the management of digital and hard copy documents, including a purge schedule. Monitor performance to ensure all staff adheres to the policies. Keep timely books to be compliant to IRS regulations, and be fully prepared for unexpected IRS reviews and/or audits. Make all digital financial data accessible 24/7 to all users and ensure it is hosted in a secure environment.
Money In | Accounts Receivable
Track time and expenses for internal staff and external vendors; accurately transferring data onto invoices that are prepared and distributed on a regular schedule. Ensure POS systems are configured to collect accurate sales. Manage collection efforts on a 30‐45‐60 day schedule to regulate cash flow. Cash transaction management processes are followed to reduce risk of theft. Make bank deposits within 24‐hours of receiving payment, and document thoroughly to allow for detailed reporting. Review merchant bank vendor regularly to ensure accuracy and to monitor fees.
Money Out | Accounts Payable
Develop and adhere to standard procedures to receive and input bills into the accounting software that ensures the accurate and timely tracking of payables, and the management of cash flow. Utilize online bank bill pay and other automatic features to efficiently process payables on‐time. Collect, report and pay sales tax according to state mandated deadlines.
Payroll, Distributions & Deferred Compensation
Develop a relationship with a reputable payroll vendor to process payroll for W2 employees and 1099 contractors. Process payroll tax returns and payments according to IRS and state guidelines. Distributions are included in the cash flow management plan. Implement a qualified plan structured to maximize contributions for key employees; review and communicate annually to all employees to encourage participation.
Financial Analysis & Strategic Planning
Reconcile all financial institution accounts on a monthly basis to ensure the accuracy of deposits and withdrawals. Prepare and analyze standard and custom financial reports on a regular basis to provide actual data upon which to set, track and measure strategic goals. Create and report against an annual budget based on historic data and strategic plans. Strive to maintain a three month operational reserve in an interest bearing savings/money market account.
Quarterly and Annual Financial Events
Process and distribute W2 and 1099 tax forms by January 31st. Close previous year books each February. Prepare and file corporate tax returns by the IRS and state deadlines. Meet with CPA quarterly to review and adjust tax payments; making year-end adjustments in December. Finalize annual budget in December.