803-879-4808
  • Home
  • SERVICES
    • PERSONAL TAXES
    • SMALL BUSINESSES
  • ABOUT US
  • CONTACT US

Small Business Accounting  Services


Picture
    Picture
Submit

SMALL BUSINESSES

Small businesses can greatly benefit from having an accountant; in many cases, accounts can pay for themselves. So, should you get an account for your small business? If this question were posed to an accountant, the answer would probably be yes. To support or strengthen this argument, 89% of small businesses operating in the US credit their growth and success to their accounting professionals' affiliation. Although acquiring the services of an accounting firm throughout the financial year can reap relatively higher benefits than its contrary, there are a few key milestones in the journey of a business for which professional assistance is crucial and shouldn’t be left to chance. As a small business owner, you must wear many hats; in this case, though, it is better to seek a professional's advice.

1. INFORMATION

Right from the moment, a vague idea for a business plan emerges and begins to take shape. One might find themselves being bombarded with a cacophony of thoughts and queries on multiple aspects of this new venture for which they might not be capable enough to provide all the right answers. Laying on a concrete foundation is essential for a successful business and ensures its growth on a long-term basis. This is where a professional steps in and guides the way for formulating a stellar business plan. It involves finalizing the business' entity structure, acquiring all the appropriate licenses before the commencement of business operations, and setting up an accounting software aiming to eradicate red tape and other obsolete methods of maintaining accounts. An accountant can serve as a crucial adviser and save you from many mistakes when you are starting. Avoiding costly penalties from the government and setting your business up to save as much money from taxes as possible.

2. ENSURING ADHERENCE TO STATUTORY COMPLIANCE

Even when the above step has been duly implemented, and business has finally taken off, it is still not quite the time yet to branch out alone by oneself without an accountant's watchful eye. Failure to adhere to the tax regulations and defaults in complying with the government's requirements regarding the accounting procedures to be followed might land the fate of your small business in hot water. 

3. EVALUATING FINANCIAL STATEMENTS

Large amounts of data are collected and recorded throughout the years, which prove to be useless in extracting any relevant interpretations that could aid in making decisions and forming a conclusion of the general well-being of the business. The financial statements of a company act as an indicator for evaluating the financial position and financial.

Performance for the given fiscal year. Careful analysis, such as Ratio Analysis and Trend Analysis, to name just a few, being performed on the Balance Sheet and Income & Cash Flow Statements among various other statements prepared, provide useful insight regarding the financial health of your company. aThis will allow you to make informed decisions as a business owner. Having proper evaluation of these statements is crucial to knowing the overall financial health of your business.  

4. GROWTH ​

Profit motive and the desire for continued operations are two of the principal characteristics of any small business. Stagnation defeats these characteristics because the entire concept of business revolves around profit and growth. If your small business becomes stagnant, it can have devastating effects if any problems arise.  Accounting firms form an integral part of the growth stage. They contribute through generating financial forecasts and relevant budgets on the available financial resources to aid in the decision-making process.

The business environment is changing, where everything is driven by evolving and emerging technologies. Small business owners lacking financial literacy and proficiency in new technological developments may find it daunting to cope with excessive data from running a business.
​
Small business owners often operate at a suboptimal level due to the hurdles of their financial limitations. They aim towards attaining efficiency in the allocation of scarce resources that will ensure survival rather than being overly ambitious and seek out growth in the initial stages of their businesses until they have obtained stability and established themselves in their respective industries. Business owners often find themselves in a paradoxical situation wherein they end up causing their company's fiscal health to deteriorate drastically. It is due to attempting to manage the books of accounts by themselves or by delegating the position to an internal member of the same organization who severely lacks the expertise required for such a job. This decision is contrary, as the action implemented to ease the costs incurred by the business eventually led to a deeper financial crisis. As an alternative approach, it is considered reasonable to hire an outsourced accounting professional. They can do more for your company than just annual reporting and taxes. Enlisting a bookkeeper or accountant's services to manage the day–to–day transactions regularly can represent a big expense to newly started businesses. That is when outsourcing work for an accounting firm is a good idea. It is imperative to recognize and be aware of when to seek the aid of a professional as timely decisions have proven to be a major contributing factor in reviving small businesses from liquidation and insolvency. Time is a scarce resource for the proprietors of these small businesses. When a major portion of it is effectively channelized into catering to the customers' needs and less towards the completion of mundane accounting tasks, it has the potential to relatively increase the profit margin and subsequently lead to accelerated growth.

HOME

SERVICES

ABOUT US

CONTACT US

© 2020. Accountants of Columbia
​All Rights Reserved
803-879-4808
Site powered by Tempest Hawk
   Privacy Policy  ​Terms of Service Disclaimer


  • Home
  • SERVICES
    • PERSONAL TAXES
    • SMALL BUSINESSES
  • ABOUT US
  • CONTACT US