Accounting is the method by which a business organizes, records, and interprets its financial information. It gives an overview of the financial health of your organization via transactions, taxes, budgets, and projections. Small business accounting pays particular attention to all the small details ensuring that your business can grow successfully.
What do small business accountants do?
Small business accountants are professionals with the knowledge and experience to help you to navigate your finances effectively. Whereas larger companies may employ their own accountants, small businesses often choose to contract an accounting firm or independent accountant for the services they need.
What specific tasks can small business accountants tackle?
In all big cities, you can find small business accountants in Sydney for example. They can handle a range of tasks, including tax returns and deductions, financial statements, account management, cash flow, payroll, and financial forecasting and advice. They can even identify potential areas for the growth of your business. Reputable small business accountants will be happy to organize a preliminary meeting to look at the needs of your business and provide you with references.
What to look for when choosing an accountant for your small business.
You will have to decide what you want an accountant to help you with, and how often you will need their services. Make a list of priorities and then think about whether you want to engage an independent accountant or an accounting firm. You should choose someone with plenty of experience with your type of small business with whom you feel comfortable sharing sensitive information.
Choosing between an accounting firm, a contractor, or an employee.
Most small businesses have no need for an in-house employee for accounting, and anyway, this would be an expensive choice. Therefore, your choice is likely to be between an accounting firm and an independent accountant operating on a contract. Before you make a final decision on this critical addition to your business, you should consider exactly what services you need and what your budget is. In detail you should look at the costs of engaging an accountant or accounting firm, their potential availability and working hours, their specific experience working with businesses such as yours, how they communicate, whether or not they can mediate with the Inland Revenue, and whether you will always deal with the same person and thus establish some continuity.
What’s the bottom line?
Although the decision to hire a small business accountant will cost you money, in the long run, it can also save you money. Unless you are up to speed with tax laws, you may well be unaware of certain deductions you can claim, and other small business benefits. In addition, your small business may grow to the point that you don’t have the time or knowledge to accurately keep track of your finances. Even if you are just starting on your business journey and don’t have any employees, don’t delay finding a good accountant who will keep track of your finances and keep your best interests to the fore.