The Basics Of Small Business Accounting Services

One of the biggest challenges for small business owners, entrepreneurs, and startup companies is understanding the importance of bringing in experts to assist with essential business functions.

A good example of this is outsourcing small business accounting services. While it is possible to use software to input data, without the expertise of CPAs and accounting professionals, it is very easy to make mistakes. These mistakes can be costly, particularly if they impact the business taxes.



Ideally, the following small business accounting services should be considered once your business opens:

• Bookkeeping – this includes managing the daily financial transactions for the small business. While this is a basic accounting function, if it is not done correctly, it can become difficult to gather the right information for financial reports, prepare for tax season, and ensure compliance.

• Accounting – accounting is not the same as bookkeeping, although the two are often interchanged. Accounting is the oversight of the financial health of the business. The accountant works with the information provided by the bookkeeper to prepare taxes, complete financial reviews, and even develop profit and loss reports. At the same time, an accountant helps to guide the company to increase efficiency and plan for the future.

• Cash flow and forecasting – this is essential to understand the big financial picture as well as to plan for the future.

• Automation – top small business accounting services work with businesses to set up cloud-based accounting systems that reduce costs and decrease work.
  
  

For more information on the services InSite CPAs provides to small businesses, call us at 717.626.0171.