Accurate financial reporting is essential for tracking cash flow and other records needed to keep a small business in the black. That’s why working with an accounting service is beneficial. As Gig Harbor, WA’s Linda M. Shiraiwa, CPA, PS Inc. explains, there are several ways detailed and comprehensive financial reporting can make the difference in keeping a small business compliant, operational, and primed for success and growth.

How Accurate Accounting Services Help Small Businesses Thrive

Accurate Payments

From creditors to vendors, regular and thorough account receivable reports provide thorough monitoring of who makes timely payments and who has a pattern of paying late or not at all. Knowing payment habits can help determine if a small business owner needs to pursue collection efforts or drop a client altogether.

Inventory Monitoring

Financial statements that offer consistent monitoring of inventory levels can also prevent companies from overspending. Programs such as Quickbooks™ are ideal for tracking inventory usage on a daily, monthly, quarterly, and annual basis. This historical data provides buying patterns to mimic for future inventory purchases.

Compliance Reassurance 

Small business owners are required to meet a number of state and federal tax obligations. Financial reporting is used to make the necessary calculations for annual taxes so filers are ready when returns are needed. Remaining compliant means companies are less vulnerable to paying too much in taxes, not getting business-friendly tax credits, or being subjected to audits.

Credit & Loan Opportunities 

Lenders want to see accurate financial reports before issuing lines of credits and loans. Clear and detailed statements provide a comprehensive status of a small business’ financial health. For instance, balance sheets pinpoint how much debt a company is carrying and cash flow.

If your firm needs help with financial reporting, accounting, and tax returns, call Linda M. Shiraiwa, CPA, PS Inc. today at (253) 858-6030 for a free and friendly consultation. What makes the accounting service different from the competition is an intense focus on helping each client with customized solutions. Visit her website for information on a variety of services to help your small business grow and succeed.