Telling What you Need to Know!

Accounting Processes and Your Business

How often do you go looking on the web  or written publications for the right information to get started with something you have thought long and hard about?  Then the next question to yourself becomes how relevant is the information you have gathered to rely on.  As always, we are here to share relevant information you, as a business owner, need to know!

​Accounting processes within your business are relevant because it makes difference in a business plan and decision.  Information is considered relevant if it provides information that has predictive values, that is, helps provide accurate expectations about the future, and has confirmatory value, that is, confirms or corrects prior expectations.  How you outline your accounting processes today, tells those who come to partner, invest or support the business more about your culture and future plans? 

​Our mission at, Fontenot & Associates Solutions LLC, is to support businesses close process gaps with unique solutions.  The process gaps are unique to each companies business so thus should the solutions put in place to close them.  When building your brand and establishing accounting processes, here are just a few things the leader should remember and clearly define within the business guide.

• ​Don't forget to make adjusting entries for accruals.   Accruals are based on estimates but those to may need to be adjusted.  Adjusting entries for accruals will increase both a balance sheet and income statement account.
• Select account titles carefully when creating business chart of accounts.  Simplicity does work for all industries and the accountants which support them.
• Check that debits equal credits for each entry.  When a purchase is made, its not just as simple to debit an expense "general ledger" account such as supplies.  The cash account must be adjusted also.
• Net income = Revenues - Expenses is identified as the accounting net formula.  When measuring net income, timing is everything.
• Rules exits for business owners on when revenue should be properly recognized. 
• In accounting, interim periods are recognized as monthly or quarterly accounting time periods.

​Accounting is useful and a critical controlling process to sustainability in your business industry.  It is just one of those things a business cannot sustain without.  Because policy and procedures give framework and influence future business decisions, business owners should no longer see them as irrelevant. 

​It's never too late to get started, start here with us!

Formal education will make you a living; self-education will make you a fortune. – Jim Rohn