Small Business Accounting
Tips & Advice to help you make your decision on Small Business Accounting
Would you like to find a way to reduce the amount of money that your small business spends on accounting services, but you don't want the risks associated with poor record keeping and improperly filed documents? Small business accounting could include a wide variety of services. To find an option that meets your needs, you will want to explore several accountants that offer part-time and contract services.
Small business accounting could mean that you just want a professional to help you file your taxes. That can help ensure that your small business avoids higher tax rates by taking advantage of every possible rebate and deduction.
On the other hand, your small business might need a professional that can keep track of your annual expenses and income. You might find that some accountants are willing to work on a part-time basis for your small business. They might even provide per-hour services that allow you to get professional services without spending a lot of money hiring a part-time or full-time staff member.
You can start exploring more of your options by visiting the websites that Business.com has listed on the left side of your screen.
Bookkeepers
How to find, hire and make the best use of bookkeepersBy Frances Sharpe, freelance writer/editor Bookkeeping may sound like a yawner when compared to the excitement of sales, the creativity of marketing and the thrill of harnessing new technology. But this time-honored activity remains one of the most crucial of all business tasks. Giving it the attention it deserves will contribute to your continued success.
Hiring a professional bookkeeper to handle your books can do far more for your business than simply plug in ledger entries. A bookkeeper who maintains accurate records can:
- Help you attract investors.
- Give you a clear picture of your financial situation.
- Help you compare your budget vs. actual expenditures.
- Help you avoid cash-flow problems.
- Facilitate tax preparation and reduce the likelihood of an audit.
Can you do it yourself?
If you're just launching a business or running a part-time venture, you may be able to handle bookkeeping duties yourself. If so, take the task seriously and get some basic training.
Try: Sign up for an online training course from Accounting for Non-Accountants and review these bookkeeping tips from OnlineOrganizing.com to avoid common bookkeeping errors.
Know the types of bookkeepers
Compare differences between a full-charge bookkeeper, certified bookkeeper, general bookkeeper, assistant bookkeeper or freelance bookkeeper. Certified bookkeepers have passed a national exam and have at least two years' experience. On the other end of the spectrum, an assistant bookkeeper has up to one year of experience performing basic bookkeeping functions.
Try: See bookkeeper job descriptions from the American Institute of Professional Bookkeepers to help decide which one is right for your business.
Evaluate your needs
Determining which tasks you need your bookkeeper to handle will help you narrow the field. Among other responsibilities, a bookkeeper may be charged with recording all transactions in the general ledger, accounts payable, accounts receivable, bill payment, payroll, filing payroll tax returns, tax services and bank reconciliation.
Try: Find a list of common bookkeeping duties at CareerPlanner.com.
Hire a professional
Hiring the right bookkeeper can help your business in many ways.
Try: The American Institute of Professional Bookkeepers allows you to place job postings or search for a bookkeeper online and offers a free bookkeeper's hiring test that you can download. You can also search for a bookkeeper at BookkeepingHelp.com.
Choose an automated system
No matter which kind of bookkeeping professional you hire, you'll need to set up a bookkeeping system. Most small businesses use accounting software or Web-based programs to facilitate bookkeeping.
Try: For accounting software, try QuickBooks or Peachtree. Big E-Z Bookkeeping is a basic program suitable for the smallest of businesses that don't need all the bells and whistles of a full-service accounting program. Try ABC Bookkeeping Corp. for a Web-based bookkeeping system. For a manual system, go to OfficeWorld.com for ledgers and AllBusiness.com for templates of common bookkeeping forms.
Use double-entry bookkeeping
It's generally accepted that a bookkeeper should use the double-entry bookkeeping method. This means that for every transaction listed, there needs to be a credit and a debit listed in order for your ledgers to balance.
Try: See how double-entry bookkeeping works at BookkeeperList.com.
Use bookkeeping to help with tax prep
Having a bookkeeper who maintains accurate records can be a real boon at tax time. With proper record-keeping, preparing and filing your taxes will be less of a chore and an audit will be less likely.
Try: Review this checklist from BookeeperList.com to make sure you're bookkeeping is in shape to facilitate your taxes.
Avoid bookkeeper fraud
Anytime you place one person in charge of your financial books and check register, there's a potential for fraud. Implement a system of checks and balances to avoid fraud, such as having your bookkeeper write checks but having someone else sign them. Ask for frequent reports and take the time to analyze them.
Try: Familiarize yourself with the 13 Red Flags to Bookkeeper Fraud from the Business Resource Network.
Try Microsoft Business Accounting. Compare Pricing. Get Online Quote.
The easiest way to find a certified business accountant.
See How T-Mobile® Can Help Your Small Business. Learn More Today.
Wave is made for small businesses. Easy, secure, free. Sign up now!
Top Rated Accounting Services Pick Up & Delivery Available
