Margin
matters. That is a simple truth of operating profitably, whether your
business is a small start-up or an established enterprise with multiple
locations. It is the ongoing responsibility of a business owner or
manager to monitor expenses and trim where it is reasonable. Accounting
may not be one of the areas where that makes sense. Steve Whyte, a seasoned accounting professional in Rancho Cucamonga, shares his insight into reasons why each type of business needs these services.
According to Sperling’s Best Places, the economy in Rancho
Cucamonga is favorable. The unemployment rate is lower than the US
average. The job market has increased by 2.3 percent in the past year,
and the ten-year prediction for job growth is well above the national
average.
Most of area jobs are in:
That aligns with the top 25 companies by number of employees cited on the City of Rancho Cucamonga, California website:
Each of those organizations have some things in common –
they pay their employees. They pay taxes. They have expenses, they earn
income, and they participate in other financial transactions. All of
that requires accounting, for the continuation and improvement of the business, and to maintain regulatory compliance.
Nearly 86 percent of the population of San Bernardino County has health
insurance. Thus, a large portion of the revenue stream for healthcare
providers is garnered through insurance companies. Accurate accounting
helps to ensure viability of the provider, and continued care for
patients. The accountant may work directly with insurance companies, on
behalf of healthcare providers, to make sure revenue coming into the
medical office meets or exceeds expenses associated for services
provided to patients.
Retail sales is typically a high transaction volume
business, requiring various daily audit processes usually performed
after hours. In addition, bookkeeping – balancing of income and expenses
on a pay period, monthly, quarterly, and annual basis – is necessary.
That includes compiling receipts and a multitude of other financial
records for tax reporting.
Residents of the Rancho Cucamonga area are fortunate to have
a long list of educational institutions, including public and private
schools, two-year colleges, and four-year universities nearby. Each has a
complex financial system requiring financial expertise. In these
organizations accounting is involved in receipt of tuition, financial
aid, funding various departments and projects through grants, and much
more.
Manufacturing, wholesale, and shipping has utterly unique
accounting requirements, generally revolving around inventory valuation
and cost of goods sold. The accounting cycle that transforms the
company’s daily transactions into viable financial statements entails
precision and experience. In this industry, the manufacturer carries
inventory. An accrual (rather than cash) accounting technique is the
standard for tax purposes. That requires delicate adjusting entries to
the organization’s ledgers. Inventory tracking is also a vital concern.
Each item produced must be accounted for in its trek from factory to
warehouse to customer using the appropriate valuation method (FIFO –
first in first out, or LIFO – last in first out) method.
These are just a few examples. Governmental agencies,
hospitality enterprises (hotels, motels, and restaurants), and niche
services each have specialized accounting needs, the scope of which
often surpasses the abilities of even the savviest business manager.
Accounting software programs provide some basic, easy-to-use tools.
What they do NOT provide is an experienced accountant who takes time to
understand your business, so you do not have to understand accounting.
When you partner with Whyte & Associates, Inc.
you get exactly that – a true partner in your success. Even more than
accounting, we are in the relationship business. Why? We know that
providing consummate accounting service requires more than in-depth
understanding of your industry. It calls for insight into the unique
character of your operations.
We provide a full range of accounting services, with that level of personalization, including:
Our goal is to help you succeed. Call (909) 575-0080 to schedule a consultation with one of our accounting professionals.
