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Accounting & Bookkeeping Services

by Kim GreeneNovember 22, 2022

It doesn't matter if you are a startup business or an established one, it is important to keep track of your finances in order to make informed business decisions. This is where accounting and bookkeeping services come in.

Accounting tracking income and expenses. A company's accountant provides strategic financial advice and keeps track of its financial position.

Bookkeeping services are the act of keeping financial records and preparing financial statements such as income statements and balance sheets. A bookkeeper is responsible for ensuring that employees file invoices and expense correctly, and handles payroll.

This lesson will cover accounting and bookkeeping services. You can then decide if you are able to handle these tasks on your own or hire someone.

Services

Your bookkeeper is responsible for keeping the financial records of your company. Your financial strategist is an accountant. An accountant is your financial strategist. They prepare for audits and help you with tax planning.

One person can handle accounting and bookkeeping services. In my personal experience, you can find bookkeeping Services In San Diego. However, before you make any final decisions, learn about the typical tasks involved in each task.

Bookkeeping

It is essential to keep clear business records. This will help you to understand what money you owe, and how much is owed, and prevent you from making costly (and even illegal) mistakes. It can help you track your business and identify income sources.

Here is a list that you need to keep organized and accurate records:

  • Employment taxes and payroll
  • Purchases and sales
  • Expenses
  • Statements from banks
  • Statements of profit and loss
  • Analyze cash flow

Two important records to keep are accounts receivable (or payable). An account receivable refers to a claim for uncollected funds, typically from a sale of credit. If a sale is made, but the money has not been collected, it can be credited.

Accounts payable refers to an amount due to a vendor, or credit for finished goods or services. A small business may have to make short-term payments for example to banks.

More information about recordkeeping can be found on the official website of IRS.

Planning for Tax

While tax planning and filing can be tedious, it is essential to ensure that everything is done correctly. An accountant can help you reduce filing errors and avoid unnecessary audits. They are trained to keep up-to-date with tax codes and regulations so they can advise you how much money your company should have.

Audit

Don't panic - an audit doesn't always go as planned! An "IRS audit" is when a business doesn't file its taxes correctly. It's quite common for a bank to audit a business in order to assess its financial situation and determine whether they are at risk of losing capital.

Your accountant is your best friend when it comes to preparing an audit. They'll help you save a lot of time in preparing.

Here are some tips to help you avoid your business getting "the poor audit".

  • Pay your taxes on-time
  • Do not file sales or receipts for business incorrectly.
  • Personal expenses should not be reported as business expenses
  • Maintain accurate business records
  • Find out your tax reporting requirements specific to your business

Read More: Tax Services In Fresno

DIY vs Hiring

You'll probably be wondering if you can do the basics of accounting and bookkeeping yourself or if you need to hire a professional. When you make this decision, it is important to look at how often and how frequently you will need certain financial tasks completed. Will you be preparing financial reports weekly, monthly, or quarterly?

Financial knowledge is another important point. Are there people in your office that are qualified to provide bookkeeping and accounting services? An accountant may be the best option if you don't have one.

It is important to remember that you don't have to hire an accountant full-time. Accountants can be hired hourly and are flexible. You won't have to provide benefits for employees if you outsource accounting or bookkeeping services.

Here are some tips to help you find the best accountant or bookkeeper.

  • Refer to references and past experience
  • Make sure that the candidate has a solid understanding of accounting software and technology.
  • You should ensure that the candidate has a good understanding of accounting procedures and policies
  • You can test that the candidate is able to communicate clearly financial terminology in terms you understand
  • You want to make sure that the candidate is friendly and not a robot.

Entrepreneurs and small business owners often outsource bookkeeping and accounting services. If you decide to do these tasks yourself, you can find helpful tools.

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