We provide complete bookkeeping from opening the mail to making payments. We will maintain the books of account of your business including accounts payable, accounts receivable, inventory and fixed assets.

Accounts Payable
Complete records of accounts payable. Includes vendor invoice recording, validation of vendor invoice , employee claim recording and validation, aging analysis and supplier reconciliation.

Accounts Receivable
Complete records of accounts receivable. Includes invoice recording, customer receipts recording and allocation, aging analysis, customer payment follow-up and receivables reconciliation.

Fixed Assets
Complete records of fixed assets and calculation of depreciation at the end of the period

Payroll Services
Full payroll services including calculation taxes, leaves, deductions and payments.

GST
Sales tax returns and detailed GST transaction reporting and review.

General Ledger and Finalization
Internal financial reporting & review, year-end preparation and liaison with external auditors

Technical Assistance
Computerized accounting system selection, set-up and training

We will not only be providing you with just the regular Trial Balances and Financial Statements but also continuously discuss with you to find out about your needs, we ask a lot of questions and take the time to listen to your answers. We ask about your past experience, current situation, future plans and also identify your major bookkeeping headaches. We then review your existing books or documents to assess the volume and type of work required, and agree a provisional schedule with the tasks to be completed.

Cash flow Management

Cash projections as per your business requirements. You can use our standard methodology or we can adopt your style

"More businesses fail for lack of cash flow than for want of profit". When planning the short- or long-term funding requirements of a business, it is more important to forecast the likely cash requirements than to project profitability etc. Whilst profit, the difference between sales and costs within a specified period, is a vital indicator of the performance of a business, the generation of a profit does not necessarily guarantee its development, or even the survival.

Sales, costs and profits do not necessarily coincide with their associated cash inflows and outflows. While, a sale may have been secured and goods delivered, the related payment may be deferred as a result of giving credit to the customer. At the same time, payments must be made to suppliers, staff etc., cash must be invested in rebuilding depleted stocks, new equipment may have to be purchased etc.

Normally, the main sources of cash inflows to a business are receipts from sales, increases in bank loans, proceeds of share issues and asset disposals, and other income such as interest earned. Cash outflows include payments to suppliers and staff, capital and interest repayments for loans, dividends, taxation and capital expenditure. Net cash flow is the difference between the inflows and outflows within a given period. A projected cumulative positive net cash flow over several periods highlights the capacity of a business to generate surplus cash and, conversely, a cumulative negative cash flow indicates the amount of additional cash required to sustain the business.

Cash-flow planning entails forecasting and tabulating all significant cash inflows relating to sales, new loans, interest received etc. and then analyzing in detail the timing of expected payments relating to suppliers, wages, other expenses, capital expenditure, loan repayments, dividends, tax, interest payments etc. The difference between the cash in- and out-flows within a given period indicates the net cash flow. When this net cash flow is added to or subtracted from opening bank balances, any likely short-term bank funding requirements can be ascertained.

If you need to produce regularly-updated cash-flow projections, have a look at Cash-flow Plan, our range of fully-integrated cash-flow planners which generate projections for 12 months ahead and incorporate a roll-forward facility to simplify updating of projections.

Our Approach
Before using a model for short-term cash flow forecasting we;
> Decide the central purpose of the exercise
> Identify the target audience
> Set the time intervals and horizon
> Sort out the level of detail required.
> Check that all the necessary key assumptions and data are to hand and have been adequately researched.
> Compile opening balances for all items which will involve cash flows within the forecasting period.
> Think through the likely impact of the critical assumptions on the cash flow projections. > If necessary, prepare preliminary forecasts manually to confirm their overall direction and consider the underlying strategic issues relating to sales, funding, costs, stocks etc.

When preparing cash flow projections, we are aware of the dangers of:
> Overstating sales forecasts
> Underestimating costs and delays likely to be encountered
> Ignoring historic trends or performances by debtors etc.
> Making unduly-optimistic assumptions about the availability of bank loans, credit, grants, equity etc.
> Seeking spurious accuracy whilst failing to recognize matters of strategic importance

These problems can arise as the result of a lack of foresight or knowledge, or because of excessive optimism. They can lead to under-estimation of the cash and other resources required for sustaining or developing a business with potentially disastrous consequences. With the aid of a computer and suitable software, we use a mathematical model to prepare cash flow projections and project short-term banking requirements for a business. The use of a computer-based model reduces the tedium of carrying out numerous repetitive calculations and simplifies the alteration of assumptions and the presentation of results. We have computer-based models constructed using a spreadsheet and an integrated feature on our online accounting system.

When your business was very small, you could have managed it only by reference to a general mental budget. Even in a small business, an authentic business plan and budget can often result in anticipating and avoiding disastrous outcomes. Medium and larger organizations invariably rely on budgets. The budget provides a formal quantitative expression of expectations. It is an essential facet of the planning and control process. Without a budget, an organization will be highly inefficient and ineffective. The budget is an essential tool to translate general plans into specific, action-oriented goals and objectives. By adhering to the budgetary guidelines, the expectation is that the identified goals and objectives can be fulfilled

Sales budget
The budgeting process usually begins with a sales budget. The sales budget reflects forecasted sales volume and is influenced by previous sales patterns, current and expected economic conditions, activities of competitors, and so forth. The sales budget is complemented by an analysis of the resulting expected cash collections.

Production budget
Sales drive the level of production. Production is also a function of the beginning finished goods inventory and the desired ending finished goods inventory. The budgeted units of production can be calculated as the number of units sold, plus the desired ending finished goods inventory, minus the beginning finished goods inventory. In planning production, we give careful consideration to the productive capacity, availability of raw materials, and similar considerations.

Purchases budget
The purchases budget provides the necessary framework to plan cash payments for materials.

Labor, overhead, and expenses budget
The Labor, overhead, and expenses budget provides the framework for planning staffing needs and costs

Cash budget
Cash is an essential resource. Without an adequate supply of cash to meet obligations as they come due, a business will quickly crash. Even the most successful businesses can get caught by cash crunches attributable to delays in collecting receivables, capital expenditures, and so on. These types of cash crises can usually be avoided. The cash budget provides the necessary tool to anticipate cash receipts and disbursements, along with planned borrowings and repayments.

Budgeted financial statements
It is essential that all of these individual budgets be drawn together into a set of reports that provides for outcome assessments. This part of the budgeting process will result in the development of pro forma financial statements. Almost every item in the budgeted income statement is drawn directly from another element of the master budget.

Continuous budgets
Our accounting systems can do continuous or perpetual budgets. These budgets may be constantly updated to relate to the next 12 months or next 4 quarters, etc. As one period is completed, another is added to the forward looking budgetary information. This approach provides for continuous monitoring and planning and allows managers more insight and reaction time to adapt to changing conditions.

Reconciliation
Cash and investments reconciliation. We reconcile payables and receivables also on a regular basis Reconciliation is a very important step in your accounting. The various reasons for which you should perform reconciliation on a regular basis includes,

A. If you fail to reconcile your bank statements every month, these errors may go undetected and they could be costly. For example, if a teller at the bank calculates a deposit incorrectly, the business may end up short of the funds it needs to continue to doing business. The reconciliation process helps provide a double check to stop mistakes.

B. If clients are complaining about not receiving funds, it could be possible that a check was lost in route. When you are reconciling your bank statement every month, you can catch checks that have not cleared, and this will help you track down any potential missing payments. In addition, you can use our reconciliation statement to make sure your business transactions are going through and have been calculated for the proper amount.

C. When business owners do not take the time to reconcile their bank statements personally, or at least see an overview of the results, they may be unaware of potential income issues or shortfalls. While delegating can help you manage your company better, you need to be able to see exactly what is going on within your company. Keeping an eye on bank statements can help you keep your finger on the pulse of your business and spot income fluctuations.

D. When bank statements are not monitored and reconciled, the potential for undetected loss is high. Reconciling your bank statement helps you prevent losses and may indicate any potential problem in your workflow.

Performance Measurement
We provide you with a detailed ratio analysis of your business performance. The usual ratios that can help you are the following;

Gross profit
Gross Profits ratio measures the margin on sales the company is achieving. It can be an indication of manufacturing efficiency, or marketing effectiveness.

Net profit
Net profit ratio measures the overall profitability of the company, or how much is being brought to the bottom line. Strong gross profitability combined with weak net profitability may indicate a problem with indirect operating expenses or non-operating items, such as interest expense. In general terms, net profitability shows the effectiveness of management. Though the optimal level depends on the type of business, the ratios can be compared for firms in the same industry.

Return on assets
Return on assets indicates how effectively the company is deploying its assets. A very low return on asset, or ROA, usually indicates inefficient management, whereas a high ROA means efficient management. However, this ratio can be distorted by depreciation or any unusual expenses.

Return on investment
Return on investment indicates how well the company is utilizing its equity investment. Due to leverage, this measure will generally be higher than return on assets.

Earnings per share
EPS states the profits of a corporation on a per-share basis. It can be helpful in further comparison to the market price of the stock.

Financial Analysis

We can calculate various financial ratios that can help you to analyze your business and the product lines to make appropriate decisions.

Liquidity ratios
In order to survive, your business must be able to meet short-term obligations like paying creditors repaying short-term debts. Thus, the liquidity of the business is one measure of the financial health. Two measures of liquidity are current ratio and quick ratio

Leverage Ratios
Your business may financed by some combination of debt and equity. The right capital structure will depend on tax policy, high corporate rates favor debt, high personal tax rates favor equity and on overall corporate risk. The long-run solvency or leverage of the firm may be very important. There are two commonly used measures of leverage are the debt-to-assets ratio and the debt-equity ratio

Debt Equity ratio indicates the relative proportion of owners equity and debt used to finance a business's assets. A low debt equity ratio indicates lower risk, because debt holders have less claims on the company's assets. A debt to equity ratio of 3 means that debt holders have a 3 times more claim on assets than equity holders. A high debt to equity ratio usually means that a company has been aggressive in financing growth with debt and often results in volatile earnings.
Debt to asset ratio includes short- and long-term debt as well as all types of both tangible and intangible assets. This is used to measure a companys financial risk by determining how much of the companys assets have been financed by debt.