Small business owners struggle to effectively manage their own internal resources accountant services and deal with the administration of the books. When building a comprehensive accounting department, it’s important that you cover the following five areas: payroll, tax deductions, incentives and credits, corporate taxes, and financial statements. By effectively setting up your accounting department to cover these core areas, you can get your accounting services right the first time. Make sure you hire someone with the right mix of knowledge, skills and personality traits.
Some small businesses prefer to outsource their accounting services and focus on their core business instead. However, if you have a general understanding of payroll and can afford to hire an effective payroll professional, you should be able to effectively manage the internal accounting service. Make sure the person you hire to process your payroll is familiar with payroll responsibilities as mandated by government agencies. You need to understand payroll basics and implement options to make the process easy enough for you to follow. Accounting services, which are critical to a robust payroll system, require accurate and timely filings; A late paycheck carries penalties and interest charges, so make sure you get it right the first time.
Aside from handling payroll, your accountant must be familiar with the principles and practices of taxation. Essential accounting services that need to be provided are tax strategies, tax compliance and tax planning with the aim of minimizing your tax obligations. Make sure they help you use any tax credits and incentives you’re entitled to. Don’t let your company be denied access to these valuable incentives and credits because your accountant lacks knowledge.
Corporate tax obligations must be carefully prepared; This is often a complicated process that needs to be performed by a trained professional with relevant experience. Preparing corporate taxes to meet compliance regulations can be a tedious task. When your accountant has the prestigious Big 4 tax credentials, you can rest assured that your in-house accounting service is solid and up to date.
Your financial statements must be prepared in a standard format to ensure consistency. Your accountant must prepare all of your financial statements and reports, including the following: Balance sheet reports, which detail the company’s assets, liabilities, and equity. The accountant also prepares a statement of comprehensive income showing expenses, income, and profit and loss. Other accounting services that need to be provided are the preparation of your cash flow statement and related documents. This will identify your company’s cash flow activities so you will know your company’s solvency.
Before hiring an accountant to provide internal accounting services for your company, make sure the person is confidential and works with a high level of integrity. You must have an understanding of accounting practices and demonstrate a high level of familiarity with spreadsheet applications. Finally, make sure your accountant is an effective communicator with great interpersonal skills. If you are unable to find the right combination of skills, your best bet would be to outsource your accounting services to a professional provider.