Understanding Accounting
Accounting is the process of recording financial transactions about a business. Full Cycle accounting is the term used to describe the entire set of activities used to create the financial statements for a reporting period. This process is more than being compliant; it is about learning how you balance functions to scale.
To close your books means making sure that all the pieces of information are accounted for so that the information provided in reports (such as a balance sheet and income statement) will be accurate for that period. Accounting is a tool you can use to evaluate the challenges, opportunities, and growth potential of your business.
The Full Cycle CFO Difference
Why Choose Our Time For Your Accounting?
This is the inspiration behind our business name: the entire accounting cycle. Understanding each layer of the process is critical, which we will communicate to you with complete transparency.
Here at Full Cycle CFO, we will review your trial balance and general ledger, reconcile balance sheet accounts, inventory valuation reports, and transaction authorizations, and tie out your financial statements to each other.
- If this does not happen, we will need to dig to see where things went wrong. Once everything has been proven accurate, closing entries are made to record income and retained earnings.
- If you utilize cash accounting, your books are almost completed once your transactions are recorded and categorized.
- If you utilize accrual accounting, your books are a little more complex. Accrual accounting recognizes income and expenses incurred, not when money changes hands, adding a layer of complexity to the process.
We will optimize your accounting systems so you can start focusing on other business growth needs – what will be your next step towards your next business goal?