Accounting, Bookkeeping and Payroll Services

accountant taking inventory

At Cook and Company we are dedicated to assisting our clientele with accounting, bookkeeping and payroll issues. Anthony Nash, CPA, Jonathan Neighbors and Dawn Tidmore all work closely with many of the business clients we represent. We recommend QuickBooks software (when appropriate) and as an Intuit Affiliate are able to offer a discount on the software.

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly related to an organization's financial position.

Retained earnings are profits from earlier accounting periods that have not been distributed to the company's owners. At the end of your fiscal year, QuickBooks computes your profit (or loss) into an equity account named Retained Earnings.

You can make transfers to the Retained Earnings account from the registers of other balance sheet accounts; or you can use Retained Earnings in a general journal entry. Your accountant can advise you if adjustments to this account are appropriate and how to make the adjustment. While you might adjust the Retained Earnings account to track funds withdrawn by, or distributed to company owners, we recommend that you create a separate equity account (commonly called Owner's Draw or Distributions) for these transactions. Using this method, you can easily see the total funds withdrawn by the owner as well as the individual transactions that make up the total amount.

This matching process is called reconciling. Reconciling your accounts is a key step to ensuring the accuracy of your accounting records. Reconciliation in QuickBooks occurs within two windows: the Begin Reconciliation window and the Reconcile window.

Some things you may want to consider before you begin your reconciliation:

If this is your first time reconciling this account, make sure you've added all your transactions and your opening balance is correct. If your beginning balance is different from the balance on your current paper statement, you may need to track down the discrepancy before you reconcile. Click Locate Discrepancies in the Reconcile window to find out how to do this by viewing different types of reports.

Reconciling your account "matching the balances for your paper statement and QuickBooks account" is a two-step process in QuickBooks. First you'll compare the beginning balance on your bank statement to the beginning balance in QuickBooks, and make sure the information for the account you want to reconcile in QuickBooks is correct. Then, you'll compare individual transactions and reconcile your account.

Print the Trial Balance report for the day after the year that you just closed. This allows you to make sure that all income and expense accounts have a zero balance and are closed out to Retained Earnings. Check that the balance of your bank account in the Year-to-Date column agrees with your Trial Balance Report.

Go to the Reports menu, choose Accountant and Taxes, and then click Trial Balance.

This is the traditional trial balance report. Use this report for clients for whom you don't make adjusting journal entries, or when you want to modify or memorize the report or perform any other standard report operation. This report creates a trial balance as of a specific date, and shows the balance of each account in debit and credit format.

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