Business Accounting Questions Answered

When starting a business, there are a variety of steps that must be taken to ensure business success. As a small business owner, managing multiple aspects of your business can cause you to miss some important pieces. Business Accounting is often one of the topics that can be commonly overlooked by many small business owners. Whether it’s because you dread accounting, or because you’re unsure of how to handle certain concepts, staying up-to-date on accounting knowledge can help your business finances grow.

Here are the top 12 most critical small business accounting questions answered that will help your business succeed.

What Does a Small Business Accountant Do? 

An accountant is a professional who handles the bookkeeping and prepares financial documents like profit-and-loss statements, balance sheets for a business. The small business accountant can perform audits of your books, prepare reports for tax purposes, and handle all the financial information that’s part of running your business. A small business accountant can help you organize your business’s financials, to help you reach your business goals. 

What Type of Accounting Support Can I Expect? 

A small business accountant can provide as much or as little help as you’d like to help your business grow. The first step should be to work with you to identify and understand your business goals, put an action plan in place, check in regularly to make sure you’re on track, and offer solutions and reminders when you’re not. From there, they could help to monitor your goal progress, and offer recommendations to help you continue to stay on track.

What is the Average Cost of a Small Business Accountant? 

Although prices will vary, outsourcing your small business accounting will be the most budget-friendly option. Outsourced accountants charge only for the time that they take to manage your business’s finances, and the average cost of an outsourced accountant can range anywhere from $500 to $5,000 per month depending on the size of your business. Most accounting services are able to give you an accurate breakdown upon showing interest in their services. 

When Should I Hire a Small Business Accountant?

There is no magic profit margin or number of years in service that must be reached before a business can consider hiring a small business accountant. If your business is struggling to maintain the transaction volume that your business is bringing in, it may be time to hire an outside service to lend a helping hand. 

Some things to consider when you are hiring a small business accountant  include: 

  • What services do they provide? 
  • Do they provide a monthly reconciliation of your business’s accounts? 
  • Are they available during your business’s work hours? 
  • Will they make sure your business is tax compliant? 
  • Will your business truly benefit from this service? 

How Can Accounting Software Help my Business Grow? 

Accounting software tools pull business transaction data straight from a point-of-sale system. Some of these report types include invoicing software and bank, significantly speed up bank reconciliation, automatically pay bills, send automated invoice reminders to late bill payers, let you know when sales invoices have been paid and allow you to check cash flow on the go from your phone.

Most small business owners will use some form of online bookkeeping software to speed up and automate their day-to-day and end of years. This drastically cuts down the chances of human error and reminds you to fill in any gaps before they become gaping holes.

Is it Difficult to Handle my Business Taxes on My Own? 

There are many different factors when it comes to handling your business’s taxes. Depending on your level of comfort, it may or may not be difficult to file your business taxes. As your business grows, the more taxes your business will have to file. When you feel that it is becoming a challenge to manage your business finances, it may be time to find a service to help. 

Are Tax Accounting Services Good for my Small Business? 

As your business begins to grow, the stress of maintaining accurate tax records can begin to feel overwhelming. A tax accounting service for your business can help ensure accuracy in your business taxes, avoiding unwanted fees and audits from government tax services. 

What is Bookkeeping? 

Bookkeeping is the recording of financial transactions and is part of the process of accounting in business and other organizations. It involves preparing source documents for all transactions, operations, and other events of a business. A bookkeeper helps you to maintain your business’s financial records, ensuring that you meet your financial goals. 

How Can my Small Business Benefit from a Bookkeeper? 

If you’re too busy to do the bookkeeping for your small business, then you can find someone to do it for you. Bookkeepers often allow you to choose different service levels depending on your budget. When hiring a bookkeeping service, allows you to focus on performing tasks that only you can–growing your business!

What Are Some Benefits of Outsourcing my Accounting Team? 

Outsource accounting services provide services similar to those of a full accounting department including, providing accurate and up-to-date profit & Loss (Income) Statements, statements of cash flows, and a balance sheet on a monthly or quarterly basis. Often, outsourcing your business’s bookkeeping provides your business further services at a lower price than hiring an in-house accounting team. 

How Can I Better Manage my Cash Flow? 

As a business owner, one of your main goals is to maintain a healthy (and positive) cash flow. To ensure your cash flow doesn’t head into negative territory, ask your accountant how you can better manage yours. Your accountant can help you come up with a cash flow projection to plan and manage for the future.

What Business Changes could I Make to Help my Business Grow? 

Have your accountant analyze your business regularly. That way, they can see where you can make improvements and what changes you can make to help your business.

Ensuring that your business has a plan to address these common business questions can help you streamline your process, set and obtain your goals. 

Limitless Business Outsourced Bookkeeping in Gilbert, Arizona.

Looking for additional help in managing your business’s accounts in Gilbert, Arizona? Limitless Investment and Capital offers a variety of skilled experts qualified to assist your business’s needs. Rather than struggling to manage your company finances, focus your efforts on a piece of your business that only you can. Our goal is to provide you with true accounting freedom. Interested in a free financial analysis? Contact us today to get started!