A small business is an enterprise that is usually small in scale concerning some workers and sales revenues. A huge majority of the businesses in the United States are a small business. These businesses are often registered as sole proprietor, meaning one individual owns it, or partnership, meaning two or more individuals owns the business.
Among the problems facing a small business is when it comes to accounting. With the restriction in funds, some accounting is carried out by the company owner. The entrepreneur is tasked to conduct the company and at the same time manages the day-to-day accounting requirements of the business. As a result of this, the business is often penalized by the authorities for late payment of taxes, late submission of tax records and at times, non-submission of tax forms. Additionally, the company can also be penalized for incorrect computations of tax dues. The company owner has his/her hands full of running the company that tackling the bookkeeping requirements can be turned over to another individual.
A company owner can hire an in-house accountant, or he/she can outsource the small business accounting work to a CPA firm like Desert Rose Tax & Accounting. An outsourced accountant can sometimes be more beneficial than hiring a worker because it is less expensive to outsource than to hire. Additionally, the outsourced accountant doesn't require a designated space while an in-house needs his/her space in the office.
In selecting an accountant to handle small business accounting for the company, some suggestions can be helpful. Before opening a business, the business owner needs to hаvе а rеаdу ассоuntаnt. Ѕіnсе а СРА rеquіrеs а lісеnsе bеfоrе hе/shе саn рrасtісе thе рrоfеssіоn, оnе must be sure that he/she has a permit. The accountant must have experience in the kind of industry the company is in.
Also in a small business accounting setup, before hiring an outside CPA to be sure one knows how much the accountant charges. Fees billed by CPA firms can vary widely. It's good practice to compare the accountant fees with industry standards. The accountant has to have the ability to fill the needs of the business. Before selecting an accountant, one must interview at least 3 or more prospective accountants so one can compare that one of the three will best serve the provider's purpose.
In handling the bookkeeping needs of the business, the company owner must ask the prospective accountant about other possible services he/she can provide to the company like sales tax and payroll tax reporting services. Some Certified Public Accountants provide business advice to assist the enterprise in growing.
Additionally, the accountant best fitted to handle the small business accounting is that the CPA whose accounting firm is also small. Accountants who have small firms understand how small businesses are run. They also have the time and resources to share with the company owner. It's one thing to have a fancy degree in business and yet another to possess practical experience running a small company. In case the company owner sells the business, the accountant has to be good enough to discuss with the owner how to go about with the sale so that tax liabilities are minimized.
Before signing up an accountant to the business bookkeeping, the company owner must ask the accountant for customer references so the operator can investigate. One must also be sure that the accountant establishes a business relationship with the owner, meaning the accountant has time to stop by the company now and then rather than just seeing him/her only when it's tax filing period.