UNDERSTANDING THE BASICS OF ACCOUNTING
BOOKKEEPING: The beginning stage of accounting is bookkeeping, and it is the foundation of accounting. Bookkeeping is the recording of the daily financial transactions in conformity with GAAP, Generally Accepted Accounting Principles.
FINANCIAL STATEMENTS: Your daily financial transactions are the elements of your financial statements. These accounting principles allow for your financial transactions and financial statements to be reliable, relevant and free from errors.
FINANCIAL BUSINESS DECISIONS: Those accurate financial statements will enable you to make financial business decisions based on accurate data.
ACCOUNTING FUNCTIONS: Once the bookkeeping is accurate, you are ready to dive into the accounting functions of your business, and develop a budget, measure the trends, and develop a forecast for the future.
The Body of Accounting will assist you with complex accounting issues such as deferred revenue, accruals, and GAAP-based accounting. These reporting/financial tools may include:
- Creating an annual budget
- Producing a weekly, quarterly and yearly forecast
- Performing quarter and annual analysis
- Cash Flow Statements
- Identifying financial trends in your health and wellness practice/studio
Think of these tools as management reports to keep everyone within the organization accountable for the organization’s financial objectives. If you don’t know what those are, don’t worry! We do, and we can handle them for you and teach you about them.