What is small business accounting?
Small business accounting, like all accounting, serves the purpose of tracking the money that flows in and out of business accounts associated with the business. This includes purchases, sales, payments, revenue, and liabilities. Analyzing and reporting on the financial data is important to gauge the health of the business so that it can work to become more profitable. Essentially, small business accounting comes down to a few activities:
- Analyzing Financial Records
- Creating Financial Reports
- Recording Financial Transactions
- Filing Tax Returns
Do Small Businesses Need an Accountant?
Simply put, a small business does not need an accountant to be successful. The truth is though, that accounting is an important activity that can help businesses and business owners identify issues as well as plan for the future.
Many small businesses consider using accountants exclusively around tax time. They recognize the need of having a professional accountant review their ledgers to avoid making errors. The same can be said for accountants for the rest of the year. The expertise of an accountant can help small businesses analyze their financial data and make recommendations that can set the business up for short term and long term success.
Benefits of using an accountant for your small business
Hiring a professional accountant or accounting firm for your small business may seem daunting. There are a plethora of benefits to having an accountant working with you though. Accountants can provide assistance with tax preparation, financial statements and reporting, and much more. Additional benefits that accountants can provide for small businesses include the following:
- Maintaining Inventory Records
- Advising on business entity structure
- Dealing with compliance and sales tax issues
- Handling complex labor costs
- And much more…
Small Business Accounting In Montgomery
Aldridge Borden is a small business accounting firm in Montgomery, Alabama that is more than eager to help small businesses manage their finances. Having been around for decades, the CPAs at Aldridge Borden can leverage their vast experience to handle any mix of complex issues that may arrive.
For some small businesses, accounting may seem intimidating and expensive. This is completely rational, and Aldridge Borden is still prepared to help. The team has developed OneSource to automate many of the small business accounting processes. This cloud accounting software can streamline business activities and help small businesses succeed sooner.
When you are ready to learn more about small business accounting or the online accounting software, please contact us. We are ready to help