Accounting and business go together like peanut butter and jelly. You can’t really have one without the other. Accounting plays a vital role in any business, no matter the size. Often times though, accounting becomes a low priority – especially for small business owners, since they are handling all the other responsibilities of managing the day-to-day operations. Nonetheless, accounting should never be put on the backburner.

If you own a business and your financial records aren’t adding up, this might be an indication you need record reconstruction. You won’t be able to know how your business is performing if your transactions are not properly accounted for. This will affect whether your tax filings are correct, and/or whether your strategic financial assumptions are reliable. 

Think of all your business transactions as a giant puzzle. In order to get a clear and concise picture, you must have all of the pieces and they must be accurate. If your transactions are not logically characterized or accurately recorded, deferrals and accruals are forgotten, or accounts are not reconciled, balances are not balanced, or transfers do not match – your puzzle will not look good.

Reconstruction of months or years of accounting records may be needed by business owners for many reasons. Reasons such as:

• Inaccurate or incomplete recording
• Loss of digital records due to calamities and/or back-up procedures
• Having no record keeping at all
• To produce needed reports
• And many more

When reconstruction is needed, whether the business owner simply neglected, innocently relied on an incompetent bookkeeper, or just active mismanagement – this turns his/her books into a state of pure confusion. However, there is no need to worry if your books or record keeping need some TLC. Here are just a few of the reasons why reconstruction of your accounting books and records are important for your business:

• It will help evaluate the performance of business. If you don’t have good records, it is much more difficult to make good decisions. This will allow you to identify areas for expansion or improvements.
• It will ensure statutory compliance. By getting your records and books organized, you will always stay within the law.
• It will help create budget and future projections. When you’re able to compile a monthly financial report, it can be used to help anticipate financial trajectory for the future.
• It will help in filing financial statements. These include income (profit and loss) statements and balance sheets. These statements can help you in dealing with your bank or creditors and help you manage your business.

Reconstruction of accounting books and records can be extraordinarily complex, so it is crucial to hire an accounting team who you can trust. Arias, Arias & Jasko Financial has performed countless record reconstruction services for clients. With the help of Arias, Arias & Jasko Financial, we can help you reach your financial goals and set you on the right path. You can’t skip accounting, but you CAN make it easier!

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Arias, Arias & Jasko Financial has been serving Florida and operating out of Fort Lauderdale since 2012. Arias, Arias & Jasko Financial takes pride in working with the owners and partners of small to medium-sized businesses to achieve their vision.

We have accounting and business consultant professionals on staff to serve you for all your accounting, bookkeeping, and business consulting needs.

The articles we share are items of interest and related to some questions we have answered in the past. If you have a question or would like to schedule an appointment please contact us at 954-650-1825.

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