Small Business Accounting Firm

A professional small business accounting service is an entrepreneur's best friend. The U.S. Small Business Administration reports that nearly 50% of all fledgling enterprises fail during the first five years. Reasons for failure are varied: a lack of operating capital, poor inventory management, using corporate cash for personal expenses, lack of sufficient credit, or investing too much capital in inventory, labor, or overhead. Long gone are the days when owners could operate out of a shoebox full of receipts. Going into business is serious business and owners need to have all their proverbial ducks in a row to succeed. Many owners begin sole proprietorships, partnerships, or limited liability corporations with little knowledge of bookkeeping practices, recordkeeping, payroll, or most importantly, state and federal taxes and reports. Running a company can be overwhelming and keeping accurate accounts can quickly become a bane to any companys bottom line. But a company that specializes in keeping other companies on track financially is can be their best asset.

While some indiviuals become entrepreneurs with little preparation or realistic expectations, the Bible offers some excellent advice: (1) Count up the cost to see if one has sufficient funds to complete the work; and (2) Acknowledge the Lord at every juncture. "For which of you, intending to build a tower, sitteth not down first; and counteth the cost, whether he have sufficient to finish it? Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him, Saying, This man began to build, and was not able to finish" (Luke 14:28-30). "Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge him, and he shall direct thy paths" (Proverbs 3:5-6). Individuals who begin new ventures need sound counsel and expert advice. Seeking the assistance of a small business accounting service is part of counting up the cost of building a profitable enterprise. An accountant can help new owners realize the financial responsibility of running a company before they take the plunge into the deep waters of America's free enterprise system.

Entrepreneurs can employ the services of a small business accounting firm to keep abreast of tax filing requirements, compute employee payroll, and help ensure that the company stays in the black. Accounting firms are available to handle quarterly or end-of-year bookkeeping. It is advantageous for small companies to have onsite personnel to handle daily bookkeeping; while outside services can more efficiently audit records on a quarterly or annual basis. An on-staff bookkeeper can keep track of accounts payable and receivables, vendor and supplier invoices, and collections. But, hiring an independent agency alleviates much of the paperwork and pressure of do-it-yourself financial management. An independent company also provides tax planning, consulting and preparation; audits and prepares monthly balance sheets; prepares corporate and personal income tax returns; and offers full cycle services. Tax preparation sservices offered through a small business accounting firm may include computing and filing quarterly and annual employer returns for state and federal governments, including 941s and 940s; computing and filing self-employment taxes; and preparing or filing W-2s for regular employees and 1099s for miscellaneous or contract laborers. In addition, services can include preparing profit and loss statements and Schedule Cs.

An independent small business accounting service can show entrepreneurs how to save money and avoid paying excessive taxes by utilizing prudent financial management principles unfamiliar to most novices. Some services also offer corporate start up packages, including preparing incorporation paperwork, obtaining employer identification numbers, and filing for nonprofit, or 501(c )(3) status for public service or faith-based organizations. The goal of operating any enterprise is to make money; but a knowledgeable small business accounting firm has the expertise to help steer a proprietor or partnership into the profit margin. Services can readily assess fiscal pitfalls and help new owners avoid the snares of improper financial planning. Regularly monitoring income and expenses, forecasting consumer buying trends, and keeping reserve cash on hand can help companies stay afloat and avoid closures. A proficient small business accounting service can make handling employee payroll stress-free. Employees won't have the opportunity to haggle over hourly rates, dispute deductions, or quibble about child support payments and wage garnishments when off-site bookkeeping services are utilized. Outside agencies can issue paychecks, compute and make Workers Compensation payments, and help keep the peace between workers and owners, while maintaining a professional relationship. Competent agencies can also help stressed corporate chiefs keep business and personal finances separate. Working with an independent accounting agency requires mutual accountability and trust. In the case of a federal or state audit, these independent firms can retrieve financial data and records which can help substantiate tax claims or provide ample documented defense.

Entrepreneurs seeking a qualified small business accounting service should browse through local telephone directories or online. Because the nature of bookkeeping requires accountants to operate in close proximity to an owners company, finding a local agency is more practical than dealing with an online source. A reputable small business accounting firm should employ at least one certified public accountant and have a good track record for keeping companies financially fit. Owners can check references through the local Better Business Bureau to ensure that the firm's past performance has been exemplary. Sole proprietors, partners and corporations can expect to pay fees on an hourly or retainer basis. Some accounting firms charge by the number of employees and the type of enterprise. Companies with more than two employees can expect to pay Workers Compensation insurance which can affect rates accounting firms charge. Entrepreneurs can ask for a list of references and do a background check on an accounting firm before signing any contractual agreement. When it comes to running a new enterprise relying on an independent financial management firm is the best route to take.