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.
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...
For many small businesses, keeping track of, and managing their taxes is a yearlong commitment, and there are several important types of deadlines to be aware of throughout the financial year:
1099 forms for contractors, need to be in the mail by the end of January, and must be...
With April 15th very definitely behind us, most US citizens who didn’t file for an extension, have filed their taxes successfully, either alone or with the help of a tax professional. Many folks will be disappointed to discover that they owe taxes, while others will be pleasantly surprised with a refund.
Tax refunds can...