If you run or are planning to begin a small business, you’ll want to put some serious thought into your accounting strategies and choices. Of course, these choices will largely depend on the type of business you are running, and whether or not you can handle day-to-day accounting tasks on top of running the business. Accounting for a small business can be as easy as updating a ledger each month, or as complicated as bookkeeping, payroll, financial reports, quarterly tax remittances and inventory tracking.
Who Needs an Accountant?
If you run a small business that operates with an inventory, you’ll need to keep track of your opening and closing inventory, which could mean daily, weekly or monthly tallies. Purchase receipts and invoices (both paid and issued) will need to be accounted for each month, as well as ensuring your bank accounts reconcile. There can be a lot involved in accounting for small businesses, but it doesn’t have to be a total nightmare.
If your business encompasses more than just yourself i.e., you have employees, then you should consider seeking outside help for your accounting needs. This could mean hiring on a part-time or contract accountant, or locating an accounting for small business firm that specializes in outsourcing and small businesses. By outsourcing your accounting needs you will greatly free yourself up to participate more actively in your business. Although it will still be up to you to gather information and documentation on a regular basis to submit to your accountant, you won’t actually have to crunch any numbers.
Having a great filing system is the best way to keep all your important accounting and tax documents in order. If you have employees, make sure they know the system too as they will likely be dealing with even more paperwork than you. Another option is keep all your files digitally, allowing you to either courier your accounting for small business firm a flash drive or to upload the information directly to them via an online portal, or Cloud-based operating system.
Don’t Put it Off
Think about your accounting for small business options before the business is up and running (if possible). This isn’t something you want to put off or deal with later on. Putting it off can actually harm your business and leave you in the dark as far as how your business is actually doing financially. You also don’t want to find your business in a position where it is filing or paying taxes late – or not filing at all.
Juggling the accounting for small business duties with the running of a business can be enough to overload and stress out any small business owner. Don’t be afraid to delegate the accounting duties to a designated accountant, whether they be in-house or outsourced. Many businesses rely on outsourcing for several aspects of their business, including accounting, payroll and even odd-jobs. Don’t miss out on a great opportunity to get professional quality service without the massive price-tag of an in-house accounting specialist.