What Accounting Services Do I Need for My New Small Business?

What Accounting Services Do I Need for My New Small Business?

Starting a business can be an incredibly rewarding experience, but it’s also a lot of work. From figuring out how much inventory to order to processing all of your customers’ payments, the list of things you need to take care of as the owner of a small business can grow seemingly endless.

Fortunately, there are a number of accounting services available to help you run your business efficiently. 

And, since accounting is such an essential tool for any business, it’s a good idea to have an overview of what each type of service offers and when you should consider hiring one.

What is an Accounting Service?

An accounting service is any professional who helps you keep track of your financials. You can hire an accounting firm to do your entire books and papers, or you can work with an accountant who only does books and doesn’t do taxes or payroll. Depending on your needs, you can find an accountant who’s certified in-house (CIA) or outside (OICA).

Both types of accountants are required to be licensed by their state’s board of accountancy. This means that they are bound by rules designed to protect both you and your business. An in-house accountant is bound by the same rules as a normal accountant. However, an outside accountant is not only not bound by these same rules, but they are also not as thorough. 

What is the difference between Tax Preparation and Accounting Services?

Accounting services are not the same thing as tax preparation. While some accounting services may include a small amount of tax preparation in their services, the two are separate and distinct. If you’re looking for a professional who can do your taxes in addition to your books and papers, you may want to consider hiring a certified public accountant (CPA).

Accounting Services for Small Business

Bookkeeping

Bookkeeping is the process of recording the financial activities of a business on a daily, weekly, or monthly basis. This includes keeping track of all assets, liabilities, revenues, expenses, and payroll. 

The main benefit of bookkeeping is that it allows you to track your business’s financial activity over time. This helps you identify trends and spot any problems early on, when they’re easier to fix.

Payroll Services

Payroll services help you track the hours worked by employees as well as the deductions and payments made for benefits, taxes, and other fees. Depending on your circumstances, you may choose to outsource your payroll or handle it yourself through a payroll service. A payroll service’s primary focus is to make sure that taxes are collected from employees and deposited into the appropriate government account.

As a small business owner, you have a few options when it comes to handling your employees’ payroll. You can either do it yourself through a payroll service or have a regular payroll service handle it for you. If you do the latter, you need to make sure you have all the proper licenses and permits to do so.

Tax Services

Tax services work with you to establish which taxes you owe and provide you with the appropriate forms to complete. Depending on your industry and the nature of your business, you may be required to pay federal, state, or local taxes.

If you’re unsure where to start when it comes to your taxes, or you think you may have tax-related questions in the future, you should consider hiring a professional. A tax professional can help you navigate the often complicated tax system and ensure that you’re doing everything correctly and filing all the right forms.

Business Consulting

Business consulting services are often offered as part of an accounting or taxation package. They can help you with things like establishing organizational charts, designing a business plan, and coming up with a marketing strategy.

Business consulting services can also be useful before you start your own business. They can help you identify what you do well and what you’re not so hot at. They can also help you identify whether or not a certain business idea is feasible for you and your circumstances.

Conclusion

The benefits of outsourcing your accounting and bookkeeping services are obvious. You can free up your time to focus on running your business, and you know that your books are being properly kept.

The best accounting services for your small business will vary depending on your needs. You’ll want to make sure you have a basic understanding of the types of services these are and which one(s) you should hire.

Once you’ve identified the right accounting services for your business, be sure to schedule an appointment so that you can get started on your books and papers.

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