General Ledger Analysis
The General Ledger represents the collection of every type of transaction for the current financial year. Many people in the positions of financial managing perform a thorough reconciliation quarterly or in some cases only as a preparation for the Year-End work. That approach bears a risk to leave errors in records and provide false information for a very long time.
There are good tools available to ensure regular reconciliations, and we apply them in every job as a standard task, before moving on to the reporting phase.

Debit & Credit Control
Controlling the money owed to you is usually one of the main tasks in every business, and often it is a real challenge. To ease the effort, it is therefore a good idea to keep a thorough record of each case, and follow a well established procedure. This may differ, depending on your type of business, your type of customers and the individual way of you running the operations.
Debit control is the other part of controlling available funds. Historically we have found that paying every bill on time puts the business in the best healthy condition. But we know that some businesses do not pay the same attention; double-payments, left out credit notes, and payment of bills that are not due for another 30 days are not uncommon. This of course means that there may be missing funds for other payment obligations.
It is quite easy to control the payable accounts, if appropriate reconciliations are provided.

Cash Position & Cash Flow
Cash funds and cash flow are most important to keep a business financially ticking over. Uncontrolled spending quickly puts the business at risk of insolvency; on the other hand, not investing in your business will render it out-dated and incapable of competing in the market. Depending on the type of business, Cash-flow forecasts are useful tools to provide good control for day-to-day spending, financial project management, cover costs for growth related additions and capital expenditure. Accidental overspending can be avoided, and with a solid forecast and a trend report on Cash Positions, larger capital expenditure can be better planned without interrupting general operations.

Related Articles