Over the years, we have had so many conversations that basically go something like this.
Owner: I think I just need you to show me how to use Quickbooks and I can take it from there. I’m pretty good with numbers.
Ginger Lee Solutions: Sure. Happy to do that. What accounts do you want me to set up for your chart of accounts?
Owner: Ummm…not sure. What do you think?
A conversation ensues wherein we discuss their business model, the main income and expense accounts, payroll and reporting requirements. Everything is eventually set up and we do a Quickbooks 101 course before exiting.
3-6 months later…
Owner: I think I might need some help with my books. I received this letter from the IRS/State/City and it says I didn’t file something correctly on payroll and now I owe penalties. Also, when I went to ask for a Line of Credit, my banker said my Balance Sheet is way off.
And this is the point where the owner admits that maybe there really is more to this accounting thing than just “being pretty good at numbers”.
Accounting is not a one-size-fits-all sort of proposition. Every business and even every entity type brings its own distinct bookkeeping needs, and a good accounting team ensures that the data being entered not only follows best practices that protect the business but also puts the right numbers in the right place so the owner can make decisions based on reports with real data.
When we work with clients in the performance marketing space, the accounting varies from what we may implement for our clients in the construction industry. For instance, in a performance marketing agency, the books are a moving target due to the unique nature of the industry. What this means for the bookkeeping processes:
Due to the constant modification of invoices as well as the sheer volume of invoicing, tracking cashflow throughout the month is especially critical to ensure there is enough funds on hand to pay employees and publishers.
Building out a robust accrual-based forecast helps our companies plan and prepare for upcoming business needs, such as obtaining a line of credit, expanding the business, hiring employees and paying bills on time.
We must leverage 3rd party software to help with downloading and uploading into QuickBooks, to save time as well as limit human error.
Here’s the thing. We love working with clients who are good with numbers because they understand the story that good data tells. But...there is also deep value in maintaining GAAP (Generally Accepted Accounting Principles) and that is not as intuitive.
Experience Matters. It Really Matters.
Our experience with all kinds of businesses means we can help you create the best way forward for your company. Trust our experience and let us help you craft accounting processes that not only tell the real story of your business but protect your company along the way.