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Small Business Accounting

The Capital Tax™ Approach

Accounting is a foundational necessity for businesses of all sizes, and their best consultant. The importance of an effective accounting system cannot be overstated. Accounting reports provide you with information for your daily needs to run your small business effectively. They also give you information upon which to make key strategic decisions, such as which products or services provide the highest margins, and which the lowest. Your accounting system summarizes the results of the company’s performance so that it can be reviewed, analyzed and improved.


At Capital Tax, we appreciate the critical role that a fully optimized and integrated accounting system plays in setting you apart from your competitors. We take a four-step approach to establish an accounting system that will improve your bottom line: 

1. Measurement


During this initial phase, we study your business model and your small business' sources and uses of cash. We interview you to get a baseline feel of your data needs and to understand your future projections.

2. Design


We evaluate our findings from step one to design an accounting system best suited for your specific small business needs. Our account system set-up services include:

  • Setting up the chart of accounts so that it is easy to read and interpret reports and transactions.

  • Create and memorize basic set of accounting reports that would allow the owners or management to effectively reflect the performance of the business, and pinpoint opportunities and threats based on analysis on the reports.

  • Memorize re-occurring transactions for ease of use.

  • Create customized reports for more advanced analysis.

  • Create a list of accounting closing procedures.

  • Identify new sources of revenue.

  • Perform price sensitivity analysis to see the impact on gross margin and net income.

  • Periodic analysis guidance for improving revenue and profitability.

3. Creating Key Performance Indicators

Key performance indicators (KPIs) are the corporation’s equivalent of vital life signs. KPIs are generated from your accounting numbers and must be reviewed frequently to make sure the small business is headed in the right direction. We will discuss with you to determine the financial, operational and marketing KPIs that will ensure the healthy growth of your small business. 

4. Maintenance

We monitor your accounting system monthly, quarterly or annually, or on an agreed-upon dates, depending on each client’s needs and internal setup. During this monitoring, we correct errors, review reports for accuracy analyze reports, and answer any questions.

An accounting system is a constant “work in progress” as new transactions are recorded and requires monitoring and updating to remain effective. We will also be available for any questions you may have outside the scheduled meetings.

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