What is your small business’s current financial status? Do you conduct financial audits and report the data with utmost confidence, realizing that all the transactions are accurate? If you’re having a tough time locating important records and you don’t understand the true cash balance of your business, the best solution that you can do right now is to hire small business accounting services to perform the job for you. Small business accounting service benefits are not just about providing you with financial reports. They also make sure that your books are accurate and up-to date at all times.
When you’ve decided to go with small business accounting services to handle your finances, your first stop will most likely be an accountant or bookkeeper. You will probably be provided with their services free of charge, but they are not intended to be your primary contact person when it comes to cash flow and finances. Rather, these accountants and bookkeepers are to conduct back-room tasks for you, leaving you to deal with your cash in the best way possible – always.
Small business owners have their own personal accounting needs as well, but the goal of small business accounting services is to provide the general ledger and statement preparation for you. Of course, this also entails a lot of additional work on your part because you will have to personally sign off on all the financial documents that you receive from your accountants. For small businesses, this is a necessary step to ensure accuracy.
Are you under the impression that small business accounting services are only for established, successful businesses? This might have been true some years ago, but now more new businesses are setting up shop and beginning operations. Some of these businesses may have only a few employees; others may employ hundreds. No matter how large or small the new business may be, one thing is for sure: the owner will have to deal with finances. Whether he does his own accounting and bookkeeping or entrusts the task to a professional, the owner still has to do his share of bookkeeping and financial paperwork.
In order to save time for the owner and minimize stress, many small business accounting services now offer virtual accounting services. Virtual accounting involves utilizing an online system that makes bookkeeping and financial paperwork easier and more convenient. What’s more is that virtual accounting services can be accessed through the use of a computer, laptop, tablet computers, smartphone… the uses are endless. As an added advantage, many small business accounting services already have access to business software programs that make using their programs even more convenient.
Payroll is one of the most important aspects of any small business. Without proper payroll management, your finances would surely suffer. This is also one of the most challenging aspects of small business accounting services, especially when it comes to manually preparing and sending out your payroll checks. Thankfully, most small business accounting services provide you with an online payroll system that makes things a whole lot easier. From there, you can manage all aspects of your finances such as taxes, expenses, and even the balance sheet.
Bookkeeping may not seem like it needs an overhaul, but in reality, it is something that small business accounting services should include. Bookkeeping involves the recording of every financial transaction, from your purchases to your sales and everything in between. In this section, you will record your daily purchases, inventory, and sales including any deliveries that have been made as well as any taxes due. If your accounting company offers virtual bookkeeping, then you won’t need to worry about recording your transactions manually which saves you a lot of time and energy.
With all the tasks involved with running a small business, it is easy to see why most small business accounting services prefer to provide virtual bookkeeping services. A professional company running a small business accounting service knows that their clients are small business owners and all of their business efforts revolve around the needs of the clients. It is best to let the experts handle the intricacies of keeping track of all these various pieces of information and report back to the client in detail so that they can achieve their goals and keep their business running smoothly.
Small Business Accounting Services
If you run a small business, you have two choices when it comes to accounting. You can hire an accountant, or you can be the accountant. Many small business owners are initially overwhelmed by the day to day requirements of building their business and put off acquiring adequate small business accounting services.
This can lead to a host of issues down the road including penalties and tax audits; something you definitely want to avoid.
Acquiring Small Business Accounting Services
There is one simple way to avoid all of these problems from day one; hire a professional accountant. Unless you are a CPA and have the time to do the job correctly for yourself, there are no other good options.
So, to summarize, if you are not an accountant, you need to hire one. If you haven’t hired one and tax time is approaching, you’ll at least want to have a professional review your return before filing.
The filing deadlines for businesses are actually in March, before the personal deadlines on April 15th. Small business owners who are unaware of this fact often get caught with their pants down come tax time.
Putting off hiring a professional and acquire small business accounting services can result in this and other mistakes which lead to late fees and filing penalties, and are only bad for business.
Accurate bookkeeping is another concern for new businesses. A lack of knowledge regarding the tax code and knowing which business-related expenses can be written off and which cannot lead to more problems.
As you may have already guessed, these problems usually come in the form of fees and penalties. The bottom line; small business accounting errors will cost you money. Those who try to save a few bucks often wind up paying for it in the long run.
Part of accurate bookkeeping involves having an organized system for managing receipts and invoices for later reference. You don’t want to wind up sorting through a huge box of random receipts when tax time rolls around.
Important receipts will get misplaced and the headaches involved with filing will grow exponentially. The key to successful small business accounting is organization.
Making charitable donations is great for the community, and comes with tax benefits. But these benefits are only realized if the donation is properly documented.
Be sure that you receive a proper receipt for any and all donations, even if you’re just donating some old clothes to the Salvation Army. Charitable donations must also be correctly accounted for by both parties involved.
Though it may be tempting in the event of a lost receipt, never fabricate a document or provide false information. All deductions claimed must have the proper documentation to be valid.
Claiming fraudulent deductions is a federal offense that comes with severe penalties, so consider yourself warned. Under current laws, you could serve jail time for fraudulent deductions.
Do you want to go to jail for losing a receipt? Get yourself organized and avoid the possibility of such penalties.
Proper bookkeeping requires keeping accurate records of money, both coming in and going out. It is recommended that al bank statements are kept in a fireproof safe for easy tracking.
The responsibility for accurate record-keeping for your business is yours alone. The IRS won’t shed any tears for you if your office catches fire and your records are destroyed. You’ll still be 100% liable for providing documentation of your finances.
Purchasing good small business accounting software is a must if you plan on doing your accounting. In addition to saving time and making the process much more efficient, it will help you avoid the kind of mistakes that will get you in trouble at tax time.
Choose software that adequately meets the needs of your business. Don’t just buy the top of the line software; you’ll wind up paying for features you may not need. An excellent small business accounting software solution should be easy to use and reasonably priced.
If you run your own small business, the advice offered herein can save you a lot of headaches and unnecessary expenses.
If you make intelligent decisions regarding your small business accounting needs from day one, you can avoid all of the problems mentioned above and focus instead on growing your business.
Accounting Services For Small Businesses Some example
- Tax Accounting Services
- Payroll Processing
- Accounts Receivable
- Financial Statement Preparation
- Bank Reconciliation
- Bank Reconciliation
- Forensic Accounting Services