For many small business owners, tracking and analyzing their finances is a painful exercise. Poor financial management is one of the major reasons for many small businesses to fail within the first few years of establishment.
Not tracking their finances diligently at every phase can lead to:
Here are some common things every small business needs to track
Need of professional help
Doing all these things on your own, working on your core business activities, can be hectic and time consuming. Hiring someone to take care of these things can really be a life-saver. But, who will you hire for your small business – a bookkeeper or an accountant? They both have the ability to drastically influence the success of your business.
On the high level, they both seem to be similar, but each one’s job role is unique. You need to be aware of some key differences between them before you hire one.
Bookkeepers maintain accurate records of your business’ day-to-day financial operations. Though the scope of their work may vary based on the size and type of industry they are working in, they generally
While bookkeeping focuses on transactional perspective, accounting generally takes a much broader view. Accountants generally
Whom to choose
It depends on the size of your business. If your’s is a small company with a few employees and modest sales revenues, a bookkeeper would be enough, from the cost point of view. As your business grows, the complexity of your financial transactions increases, you may then need an accountant to oversee your financial matters.
You may need an accountant when your business is in the startup stage too. An accountant can help you choose proper business structure and establish a record keeping method.
Most small businesses trying to manage without a bookkeeper will struggle, irrespective of how much they may enjoy that aspect of running a business, or even how proficient they believe themselves to be at it. The simple fact of the matter is that good bookkeeping requires time, patience and more time! Some busy business owners may be prepared to dedicate a good...
April 16th may feel like a joyous occasion for small business owners and an excuse to throw down the tax towel and shake off the tax blues for another year, but this kind of approach can be dangerous, to say the least!
Ditching tax talk for the rest of the year after filing, can land you in big trouble when the next tax season...
All small businesses will go through a series of ups and downs, and solving some of the problems that can arise, takes time and patience. Most owners of small businesses complain of not having enough time to do everything that is required of them, but finding time to update the books so that their bookkeeper can do their job efficiently, is one thing business...