Benefits from Bob Parrish CPA PC

Benefits of Accurate Records of Accounts Receivable You will know which customers are behind in paying you, so you can communicate with them on a timely basis. You can accurately calculate interest and collect it from overdue accounts. You can send out professional-looking customer statements on time that increase the likelihood you will be paid on time. You will no longer lose track of customer invoices. You will stop making sales to customers that haven't paid their bills. You will not risk losing customers because you didn't record their payments properly, or on time. You will reduce your need to borrow due to poor cash flow.

Benefits of Maintaining Perpetual Inventory

	You won't lose sales because you're out of stock on fast-selling items.
	You will avoid rush delivery charges to obtain out-of-stock items.
	You won't waste funds buying more of what is not in demand.
	You will reduce the need to sell a product at a loss because you didn't take markdowns on time.
	You will be able to set your selling prices based on profit goals instead of by guessing what the consumer is willing to pay.
	You will be able to concentrate on selling the most profitable items instead of those that are the easiest to sell.
	You will be able to reward your sales force based on the profits it generates for your business, rather than on gross sales or units sold.
	You will be able to identify profitable cross-selling opportunities.
	You will know which product lines to expand because they're profitable and which lines to drop because they're not.
	You will be able to find out if you have a theft problem before it threatens your business. Benefits of Accurate Records of Current Liabilities
	You will never pay a bill twice by mistake.
	You will reduce the amount of discounts lost from paying vendors late.
	You will be able to plan for payment due dates and reduce the need to borrow from a bank or personal funds.
	You will be able to obtain better credit terms based on a good payment history.
	You will be able to improve your credit rating and keep your borrowing costs low.
	You will know how much payroll and sales taxes you owe on a timely basis, so you can avoid penalties and interest. Benefits of Accurate Records of Cash Receipts and Disbursements and Bank Reconciliations
	You won't write a bad check by mistake.
	You won't pay bad check service charges.
	You will be certain that all cash receipts are credited to your account.
	You will know if an unauthorized check has been written.
	You will know when you have excess cash so you can invest it to earn interest. Benefits of Accurate Expense Records
	You will be able to keep track of all of your expenses in detail, and you will know which ones can be cut back.
	You won't overspend a budget by mistake.
	You will get the maximum possible tax deduction for the expenses of running your business. Benefits of Monthly Financial Statements
	You will know how much profit you've made and what your business is worth each month so you can--
	decide when and how to grow or to cut back,
	plan accurately for taxes,
	save hundreds to thousands of dollars on year-end tax preparation fees,
	comply with the reporting requirements of a business loan,
	respond quickly to any supplier or customer's request for current financial information.
	You will be able to understand the difference between profits and changes in your cash balance. Benefits of Job Costing and Process Costing
	If you keep track of revenues and costs by job or project (e.g., contractors, attorneys, and landlords)--
	you will know on an ongoing basis which projects are profitable and which ones aren't,
	you will be able to get paid on a timely basis as you complete the job,
	you can avoid committing resources to projects where progress payments are overdue.
	If you manufacture or assemble products--
	you will know what it costs to make each item,
	you will be able to set selling prices that cover your costs and earn a fair profit,
	you'll know what product lines to expand because they're profitable, and what product lines to drop because they're unprofitable.