• What revenue and expense accounts do you need?
• What accounting software should you decide on?
• Who is going to perform the bookkeeping?

Implementation

Organizational Documents
Essential organizational documents include:

• Legal: LLC, LP, Sub-S
• Federal: EIN
• State: Registration
• Internal: Operating Agreement

The organizational documents formalize the business plan, the role of the investor(s), the role of the various operator(s), and chain of authority (governance).

Chart of Accounts
Business owners need to identify, and then classify, revenue streams. To what extent does the business owner need to segregate sales & marketing from general and administrative expenses? Expense accounts evolve over time. Properly formatted financial statements are a prerequisite for any successful business.

Systems Installation
Every system is perfectly designed to get the results it is currently producing. Is your accounting software suited for your line of business? Is it being properly maintained and updated? Are security systems in place?

• How do you budget so that you can best plan for the future?
• What transactions should need automation?
• What checks and balances do you need to put into place??

Processes

Systems Integration
Does the accounting sofware effectively integrate with other disparate 3rd party financial processors?

Internal Controls
Is there a system of checks and balances within the financial operations? Monthly reconciliations involve not only cash accounts, but additional accounts as well.

Management Reports
With the right processes and procedures, your accounting software will readily generate these helpful management reports:

• A/R Ledger (by Customer)
• A/R Aging Schedule
• A/P Aging Schedule
• Sales Report (by Customer)
• …and others

Toggling between Accrual and Cash Basis Accounting
Businesses operate via the accrual basis of accounting, which essentially is the economics of the business, whereas tax filings are generated on the cash basis of accounting. The proper supervison of these two methods of accounting are critical for your enterprise.