Succeeding Through Small Business Accounting
We all have to start somewhere; this is what most people would say when they hear about small businesses. However, there is a great debate if small businesses need the same things as big businesses. Like if a small business accounting has the same relevance to a big business accounting. So the question still stands, do small business owners need to consider getting professional help for accounting services to be done for their company? If so, then what are the things that would be taken off from their hands if they did so get help from professionals?
Here are some reasons why small business owners must look into getting professional assistance for small business accounting services.
• In every business, big or small, many things need to be done in a financial standpoint or in an accounting basis just like creating periodical accounts closing whether monthly, quarterly, semi-annual, and annual closing. They also need to be able to generate a trail balance, make adjustments for accrued expenses and liabilities, make adjustments for earned incomes, and make provisions for deprecation, bad debts, amortization and other related items. In addition, they need to prepare financial statements and final accounts: profit & loss account, balance sheet, cash flow statements, and equity statements.
• A small business also needs book keeping just like a big business does. Accounting of a small business need to book all incomes and expenses as per information supplied through bank statements and receipts & vouchers. This will help in showing data about the company for future references.
• Another thing that is removed from the owners’ hands is the time and tediousness in preparing the payroll. You may think that a simple payroll is easy to do but many things that come with the payroll. These related tasks include maintaining payroll data, employees’ information, salary information, tax table, running payroll periodically, printing and mailing the paychecks and pay stubs, and depositing federal and state tax deposits. It also involves preparing quarterly tax returns, preparing W2/1099 for all employees, mailing and preparing annual payroll tax returns, reporting wage information to state and social security administration, and generating payroll reports for client information. These prove how difficult it is to make and keep up with payroll.
• Small businesses should also have tax preparation. Preparing and filing tax returns is a very difficult and tiring job to do because there are a lot of things that you must consider and know about 1040: individual tax returns, 1040NR- individual (non-resident) tax return, 1020-corporation tax returns, 1120-S corporation “S”, Tax returns,1065-partnership/LLC tax returns,1041-estate and fiduciary tax return,990- non-profit tax returns
• Further, in order for a company to stand firmly on its own, a company must be able to have business plans and financial projections. Accounting services provide these types of services to be able to establish the business. Besides, some small businesses that have accounting services done for them get additional help when it comes to management services. These include setting up office procedure system, developing service rules, setting up managerial authority and accountability, procedure for duplication of process and plan for elimination of such unproductive and unnecessary processes, setting effective reporting channels, managing client business, representing client to its bankers, setting up managerial targets and goals, attending management and board meeting, clients/customers, vendors and its employees.
Overall, small business or big business, they have the same needs. Therefore, they should be given equal attention. Accounting services should be taken into consideration regardless of the size of operation. With good, small business accounting comes success in the business, and if the business is successful small business will then become big business in the future.
