Small businesses are the lifelines of any economy. They create jobs, boost local development, and provide ideas that can go on to turn into lucrative companies. These small business owners have a lot to deal with in day-to-day operations. Things like cash flow, inventory management, payroll services, taxes, licenses – if you’re not familiar with the lingo these tasks might seem daunting or downright magical.
Thankfully there are professionals out there called accountants who can help small business owners make sense of their money matters. Accountants are an asset for anyone looking to grow their small business by providing financial advice and guidance on how best to manage your money.
Accountants offer services tailored specifically for small businesses operating at 6-month intervals or less. Keeping track of income and expenses is central to accounting, so the services offered by accountants are oftentimes free. 6-month accounting software for small business owners is available online that allow you to track your financials in real-time – no accountant fees required!
The field of accounting can be a confusing one, especially if you’ve never had to learn about it before. Different types of accounting services are often confused with each other, and some companies even use multiple types of accounting at once. Below is a list of the most common types of accounting services used today so that you may better understand them:
When people think about having an accountant, they usually assume that someone will come into their office or home and tally up all the books for them. This is incorrect; accountants provide both bookkeeping and management services from their own offices, which saves money on moving fees and allows more privacy for the business owner. Accountant’s not typically file taxes or operate as a public company unless they’ve reached a certain level of success.
Accounting, Bookkeeping & Tax Services
Sometimes business owners (especially those who are new to the game) don’t know that good accounting services aren’t enough to properly run your business; you also need bookkeeping and tax services. A professional bookkeeper can help you sort through all the records provided by an accountant and make sense of them; he/she will then provide you with specific data about your business’s performance for tax season including any deductions you may be able to take advantage of.
This service is usually provided along with accountants, but can occasionally be purchased separately depending on which service provider works best for your individual needs.
Businesses often hire tax preparation professionals because the United States tax code is widely considered to be very complex. Some business owners are unsure of whether or not their business is making enough money for them to be taxed, while others may know that they need to pay taxes but aren’t sure how much they should owe. The federal government has a variety of deductions available so it’s easy to get confused. If you hire tax preparation services, you will have access to an accountant who can prepare your taxes for you at no extra charge!
This type of service is usually provided by accountants or bookkeepers and is meant to help you get your finances under control over the long run. It usually works best for people who need some guidance but doesn’t want to completely hand their business information over to someone else. For those looking for a little bit of help from an expert without having to worry about putting all of their eggs in one basket, consulting services are perfect!
In this type of accounting service, a virtual employee will work on your books from home as opposed to coming into your office. This way, you only pay the company when they’re working for you, saving you money on overhead costs. These companies can offer bookkeeping and management services as well as tax preparation.
The last type of accounting service, audit services, are typically only required if your business grosses over one million dollars per year and/or owns stocks in other companies. An auditor would determine whether or not the financial reports you’ve submitted are accurate, and would then file that information with the Security Exchange Commission.
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