Who Wants to Track Their Expenses?
We Sure Do.
Most entrepreneurs don’t get into business to sort invoices and keep track of their finances. Running your own company is supposed to free you from menial work, not make you do more math. However, now that your business is growing, you’re compelled to open the books and learn about accounting.
In reality, most company heads don’t know the difference between basic bookkeeping terms. When it comes to managing accrued expenses and accounts payable, business leaders decide to outsource their books to professionals like us. We manage your expenses, and you can stay focused on business growth.
Accrued Expenses Services
Accrued expenses are expenses for the utilities, goods, and services that your company still hasn’t paid for. It can be something you incurred in January, but the invoice doesn’t come in until February. It’s an expense that accumulates over time and with each unpaid bill.
Keeping neat records of accrued expenses is essential, as they don’t give a clear picture of what’s owed until the invoice is processed. Unpaid accrued expenses are only an estimate of company debt. Since they are recorded before they are paid, they must be matched to invoices and adjusted at the end of an accounting period.
Accounts Payable Process
Accounts payable (AP) are your company’s current and ongoing expenses due to be paid in the specified time in the future. Unlike accrued expenses, accounts payable appear on the balance sheet as soon as they are purchased. Your company’s books can account for each bill and document it with a corresponding invoice.
Even if the expense has not yet been resolved, the deadline for paying the bill is set for the next 30, 60, or 90 days. While accrued expenses are only an estimate of your debt, accounts payable come at a fixed amount. They are usually short-term debts due at the end of the month.
Why Do You Need Expense Management?
While you don’t have to know what’s what in accounting, understanding the importance of immaculate bookkeeping is crucial for your company’s financial health – accrued expenses and accounts payable are good examples. Every open account is a liability – without proper expense management, it can result in penalties and late fees, but not only that.
Miss more than one payment, and you lose a creditor and earn a bad reputation, but more importantly, recording one type of bill but omitting the other will give you an incomplete (or completely wrong) picture of your bottom line. Poorly kept books lead to a poor understanding of your company and its liquidity, which leads to poor decisions.
How Can Sonoran Bookkeepers Help You?
Sonoran accountants are a team with over twenty years of experience in bookkeeping. Our dedicated experts have provided financial help to more than a hundred growing businesses and large organizations spanning more than ten key industries. We are versatile and well-practiced bookkeepers who are also skilled in administration and financial analysis – and we love our clients as much as we love accounting.
Sonoran books are nothing less than flawless. It takes time, hard work, and dedication to detail all daily expenses, keep tabs on bills and invoices, and regularly prepare profit and loss statements, so we don’t mind bragging about it. We love every part of it, and we never close our books before we’re satisfied.
Accounting allows you to make smart business moves, but to reap the many benefits of clean books, you must be able to read them first. We promise to explain each expense and account payable in your balance sheet and teach you how to turn financial data into actionable insight without our help.
We don’t just manage our clients’ expenses for the month and leave. You can rely on our experts to stay by your side for the long haul and show up when you need financial advice. Partnering up with Sonoran means subscribing to the best business advisors in the industry. Just give us a call when you’re in trouble.
Is There Anything Else We Can Do For You?
Sure, we can manage your expenses. However, our team of experienced business advisors can also analyze the current state of your business, devise a roadmap for success, and help you rise to the top.
Monday - Friday: 8am - 5pm
Saturday: By appointment