How Do Small Businesses Maintain Basic Accounting?
Accounting for small businesses can be a daunting task. There’s a lot to manage, and all accounting needs to be accurate to maintain your business's financial security. In-house and hired accountants alike focus on several factors to make sure your business is on the right track. So what’s right for you: do-it-yourself accounting or professional services?
While there are several software options available, accounting services allow you to work with a professional to create a plan tailored to your business. This takes the stress off of you and your employees so you can focus on business operations and customers.
Delta Wealth Advisors provides you with CPAs and complementary financial professional services to make sure your business’s finances are maintained and up-to-date.
Can I Do My Own Small Business Accounting?
You can do accounting in-house using free or paid programs. In many cases, you’ll have the ability to maintain your accounts, but it can become overwhelming as your business grows, even if you have a dedicated employee. Despite that, there are options out there that allow you to manage accounts with comprehensive features. You might choose a small business accounting software free to use. Here are a few options you have:
- Wave: This easy-to-use program provides all of the necessary tools to maintain your accounts.
- ZipBooks: This program is designed for small business owners just beginning their own account management.
- GnuCash: This open-source program provides many features, but might be harder to use.
- Sunrise: This straightforward program is specifically built for small business bookkeeping.
Of course, free software has its limitations. It’s not as comprehensive as an accounting service and is sometimes difficult to use. More importantly, the software might not be able to keep up with the growth of your business. The benefits of hiring an accountant for a small business will lead to feeling secure in your finances without having to worry about doing it on your own. At Delta Wealth Advisors, we take the accounting off of your plate so you can rest assured your finances are well managed and accurate.
What Does An Accountant Do For Small Business?
Small business accounting is provided through a number of services. As a business owner, you can choose which programs and methods you need to better help you maintain your business finances. Below are services that we offer at Delta Wealth Advisors:
- Accounts payable/receivable: You want to make sure your business’s invoices are paid and that you’ve paid all of your expenses. An accountant oversees these processes and makes sure everything is paid on time.
- Audits: Businesses most often complete an audit when requested by a service provider such as insurance or banking partner. These firms want verification that the books and records provided are accurate and up-to-date.
- Bookkeeping: Bookkeepers assist business owners in keeping track of income and spending, as well as providing profit and loss reports. This provides the clear, accurate data needed to make informed decisions.
- Financial controllers: With data acquired by bookkeepers, financial controllers analyze it even further and provide solutions for generating budgets, managing bank accounts, and meeting regulations.
- Forensic accounting: Although forensic accountants are regularly hired by government authorities to investigate fraud, they can also be hired by business owners who suspect their finances are being mishandled.
- Management services: All of your accounting services will be overseen by a dedicated team, making sure each aspect of your finances aligns.
- Payroll: Employees need to be paid on time for their work. Payroll accountants will ensure their payments are correct while taking out the proper deductions.
- Reconciliation: You'll need to employ an advisor that offers a bank reconciliation service if your financial records and bank statements aren't in sync. When your records don't match the amount in your bank account, it might be a red flag; therefore, it's better to be proactive in detecting and correcting the discrepancy. A reconciliation is a type of audit, typically less time intensive.
- Tax services: If you need help deciphering and filling out tax forms, a tax accountant can assist you. They aid individuals and businesses file taxes efficiently while conforming to the Internal Revenue Code and minimizing tax obligations.
All of these services are available to you without the need for cumbersome accounting software and time-consuming financial management. Using accounting services will allow you to remain confident in the maintenance of your finances while your business grows.