Financial management includes bookkeeping, financial accounting and statements, management accounting and reporting, budgeting, projections, and strategic advisory – all of which forms the foundation of your financial operations and helps you reach your goals through informed business decisions. Avenues Financial has customized solutions to fit your needs as your business grows.
Bookkeepers are responsible for entering the data into the books and keeping the records up to date. Bookkeeping is transactional. It involves tracking all income and expenses, paying bills, invoicing, tracking payroll, etc.
The core of bookkeeping is data entry and coding, ensuring that the accounting system, spreadsheets and databases are populated with the correct data, coded to the right accounts so that bills can be paid and reports can be pulled.
Because bookkeepers are the source of the original data entry, they must understand how to code each transaction.
All of our Accountants have a four year college degree and have a higher level of expertise and experience than bookkeepers.
Accountants are the front-line people as far as the data and numbers are concerned. They are responsible for managing the company’s accounts and ensuring proper reconciliation. Their goal is to produce schedules that support the final numbers for each account.
Accountants aren’t usually focused on forecasting and strategizing. Rather, accountants’ goals revolve around managing accounts, reconciling invoices, and handling month- and year-end close, ensuring that financial statements are accurate, meaningful, and timely.
Accountants must implement the accounting principles of the company, be it the matching principle, revenue recognition, or GAAP accounting.
Think of the controller as the quarterback of the accounting function – overseeing accounting operations. He or she manages the accounting function, including ensuring month-end close processes and financial reporting functions are performed accurately and timely budget creation.
The controller is ultimately the person responsible for ensuring financial statements and balance sheets are recorded, reconciled, and delivered to the appropriate stakeholders. They oversee the accountants and bookkeepers and control the company’s cash flow – keeping tabs on how the money comes in and where it is going.
The controller must create the month-end closing schedule. He or she must communicate responsibilities and expectations to the organization so everyone understands their role. Once the data’s being processed, it’s up to the controller to ensure the accuracy and viability of each financial statement.
The controller ensures that the company’s accounting systems and processes comply with generally accepted accounting principles, help reduce risk and manage cash.
The Chief Financial Officer, or CFOs, primary responsibility is to be able to project the long-term financial picture of the company and help it thrive based on his or her analyses. While mostly forward looking, the CFO oversees, or if need be, performs the Controllership duties – ensuring accurate and timely reporting is available to the businesses’ key stakeholders.
CFOs also oversee investments, capital structure and debt and equity. In essence, they are responsible for both the current financial condition as well as the company’s financial future.
The CFO uses forecasting and modeling to provide scenario analysis to develop strategies to ensure the company’s success.
The CFOs role in small business typically focuses on strategic advice and helping the business scale vs. investor relations and capital investments at larger companies.
Certified Public Accountants (CPAs) are highly important in every accounting and business services or system, regardless of the industry. They play an advisory and analytical role during the analysis of the past performance of a business. Their services are instrumental for individuals and organizations looking to achieve ambitious financial objectives.
They are in charge of doing analyses of the information that the bookkeeper has produced over time. CPAs are qualified to give you financial advice since they have a strong understanding of your taxation requirements and financial reports.
Accounting and Financial Reporting is important for helping you maintain accurate financial records. Yet still, many businesses fail to implement this integral process. Besides the fact you are required under law to maintain accurate books and records, doing so will save you frustration later on.
In fact, “poor accounting” is one of the top reasons businesses fail.
Without accounting, you are blindly driving your business.
Timely, accurate, and relevant financial information is absolutely paramount for successful business management. Budgets and accurate financial records and reports are of limited use if the information is not communicated clearly to the Board and those responsible for managing the company.
Financial information being reported is relevant
Financial information is understandable
Financial information is reliable
Financial information is reported timely
Successful business owners use monthly and quarterly fiscal reports to ensure the company is on track with its goals of hitting revenue targets, controlling expenses, and maximizing potential profits.
Let our team of experts handle the accounting and financial reporting so you can focus on what you love to do – growing your business.