One of the toughest tasks for owners and senior management of small and medium businesses are keeping up with bookkeeping and accounting responsibilities. This type of back office function is often only given attention when the circumstances – piles of receipts, bills and invoices – dictate that they must be attended to. In addition, many times the person responsible for this area is not fully trained in the duties as would an outsourcing service that provides bookkeeping. Unfortunately this can be a recipe for underperformance in two ways: first, struggling with bookkeeping takes focus away from other revenue and profit generating activities; and second, poor record keeping and mistakes caused by rushing can lead to errors that can give an untrue picture of a business’s performance. To get a business’s financial house in order, it is essential that the right bookkeeping and accounting forms are utilized. Jotting down sales and expense figures in a notebook or saving receipts and invoices in folders can lead to costly results. Some of the basics include forms for recording revenue and expenses, as well as accounts receivable and accounts payable aging.

The data from these forms are then used to develop reports such as an income and loss statement and a balance sheet. An income and loss statement provides crucial information to a business by detailing revenue and expenses for a set time. However, keeping track of these key business elements is crucial to running a successful business. A balance sheet is a snapshot of an organization’s assets and liabilities. Assets include things like cash, receivables, inventory, equipment and real estate. Liabilities detail any loans, short or long term debt and company payables. Like the income and loss statement, a balance sheet provides crucial information. Having the right forms is important, but they must be filled out. Today, more businesses are turning to outside agencies rendering services for accounting that remove the burden of recording transactions and preparing reports. This allows the business owner and other personnel to spend more time on strengthening and growing the business.