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