Post Contributed by Ed Carter
Every entrepreneur or small business owner soon discovers there aren’t enough hours in a day to accomplish every task needed to make your business a success. Delegating some of your business functions, such as accounting and payroll, helps you keep your focus on growing your business. Here are some of the tasks a professional accounting service can manage for you.
An accounting service reviews any pending contracts to look for possible financial impacts to your business. Getting a professional’s perspective helps you avoid any potential issues and get them corrected before the contracts are signed. Be sure that the accounting service has a sufficient level of knowledge of your industry and the ability to review your financial statements.
Different types of accounting professionals do different things. While most agencies perform a broad range of functions, so do not. You might find someone who specializes in audits, taxes, or management consulting. Some agencies focus on commercial and industry accounting, and some are especially helpful if you have specific concerns like internal reporting. Examine what your needs are and find the best solution for your business.
Managing Financial Transactions
Turning your everyday financial transactions over to a general accounting service ensures your records are organized, accurate and completed on time. Some of the tasks offered include:
- Accounts payable
- Accounts receivable
- Client invoices
- General ledger maintenance
Letting a professional company handle these tasks also moves the burden of risk off of you to ensure all government and industry regulations are followed. It also protects your business from the possibility of internal fraud.
Creating Your Financial Statements
Regular financial statements help you get a clear picture of the health of your company. Generally, these reports are compiled on a monthly, quarterly and annual basis. Reports that are run include:
- Balance sheet
- Cash flow
- Retained earnings
It is important for you to understand each of these reports and analyze them with your accountant to identify areas that are not doing well and need further investigation into what is causing the issues.
Providing Tax Services
These services are very helpful at tax time because they keep track of all the required documentation and ensure everything is submitted on time. You receive advice on how much to pay in estimated taxes every quarter, and they submit your company’s financial reports and paperwork to the IRS.
An accounting service handles all the paperwork for your new employees and contractors and makes sure both types of people who work with your company are classified correctly for the IRS. The service you choose also knows when the 1099 and W2 forms need to be completed and sent to the IRS.
The accounting professionals you work with can offer tax planning services and analyze your business’ taxes, looking for ways to lower your tax burden in the future. They are the experts when it comes to knowing which forms to submit; for instance, certain forms need to be filled out for an LLC that aren’t required for a sole proprietorship. If your business is set up as a corporation, then you might need to file forms regarding shareholders and Schedule E. Best to leave this to the pros.
Accounting firm BSB explains that an accounting service conducts an audit of your business to determine if your financial statements are prepared with the correct accounting practices and are presented accurately. To complete this task, the firm will examine your company’s financial records to make sure all necessary policies are being followed and that these records are properly stored.
Moving Your Payroll Online
One task that is wise for you to delegate is your payroll. Outsourcing payroll prevents you from having to learn all the rules and regulations of the process and protects you from being fined for any errors. There are several online options available, so look for one that offers direct deposit and automates your payroll process, taxes and forms. Delegating complicated tasks such as accounting and payroll services ensures these detailed processes are completed accurately and in line with all industry and governmental regulations. It also frees you up to focus on growing your business.
Ed Carter has worked with clients of all ages, backgrounds and incomes. About 10 years into his career, he saw a need for financial planners who specialize in helping individuals and families living with disabilities.