How A Bookkeeper Can Help With Management Decision Making

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How A Bookkeeper Can Help With Management
Decision Making
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• A bookkeeper can help you with financial reports
  that must be submitted to the IRS for tax
  purposes, but they can also help you with the
  financial reports that will go to management to
  be used as a reference for effective decision
  making. Both reports are directed towards
  determining profits, of course, but filing your
  tax returns is to determine what portion of your
  profit you must pay to the IRS, while management
  accounting is to measure what produces profit in
  your business.

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• The only way for your bookkeeper or accountant to
  help you make meaningful and accurate management
  decisions, is to ensure that your accounting
  records give you the following information
• Some aspects of sales costing are easy to
  calculate a certain amount is paid to bring in a
  product, which is then sold at a higher price.
  Under the umbrella of sales cost, can be the
  costs of shipping, packaging, sales commissions
  and storage, and unless you have appointed a form
  of cost accounting, salary costs will be added
  together under overheads.

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• Overheads
• These are the costs that remain constant
  irrespective of whether anything has been sold on
  any given day, or at any given time. Often these
  overheads will include mortgage interest,
  property taxes, telephone, basic utilities and
  the costs associated with non-sales or production
  staff.

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• Taxes
• Determining your companys net profits will
  require calculations based upon taxes collected
  and payable, expenses for employees that doesnt
  include their wages, and income tax profits.

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• Cashflow statements
• Having an effective cashflow management system is
  another vital element that must be present of you
  and your accountant are to be able to make
  informed management decisions. Spreadsheets are
  effective enough for smaller companies, where
  cashflow statements are more suitable for larger
  businesses, and both should be updated regularly
  to enable you or your accountant to reference
  them at any time.

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• Financial reports are a great tool for helping
  you, as a business owner, to make important and
  effective decisions for your company, but your
  books must be set up in a way that allows you to
  use them as such a tool. A good bookkeeper or
  accountant will help you with this.
• If your bookkeeper or accountant is worth their
  salt, theyll ensure that your financial reports
  are timely to enable you to review them often
  enough. When such reports are produced in a
  timely manner, youll

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• soon begin to pick up on trends within your
  business, and youll find yourself being able to
  read between the lines to better predict and
  analyse the findings.
• If you find yourself called up for a tax audit by
  the IRS, you should ask your bookkeeper or
  accountant to be your primary person of contact
  they can then communicate with the IRS on your
  behalf, relieving a lot of the time, effort and
  stress from your shoulders.

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  Diego, California, is a premier provider of
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  solutions specifically developed for small and
  mid-tier companies. If you are looking for
  business consulting in san diego or bookkeeping
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