Small business owners deal with difficult problems. They have to deal with cash flow issues, keep on top of their accounting records, control costs, and boost efficiencies. But more importantly, small businesses have to stay on top of constant changes to the tax laws. Because of these combined battles, entrepreneurs have to improve their finance and accounting departments, or outsource these tasks. One way to get this done is to hire an accountant who specializes in accounting for small business. CA firm in Dubai created for small business owners who cannot afford a full-time on-site accountant.
Accounting for small business firms perform four major services that specifically help entrepreneurs face and deal with their financial challenges.
These four accounting services are listed below:
Bookkeeping – When the books aren’t kept properly, the chances of losing money is more likely. The process of keeping up the books involves tracking business transactions daily as they happen in what is called journal accounts. Later, the accountant will take those entries and enter them into a general ledger account. What the owner of a small business can expect from an accounting for small business specialist:
• Accounts receivable
• Accounts payable
• Cash receipts
• Business filings
• Bank reconciliations
• Balance sheet
• Payroll accounting
• Income Statement
Federal, State and Local Taxes: Business tax laws in the United States are constantly changing. As a result, small business owners have to know how to comply with the new and ever-changing tax obligations. With the help of an accounting for small business firm, they can minimize their business tax obligations. Tasks that are completed by an accounting firm include federal, state and local tax issues. Some accountants will also represent the small business to IRS auditors or give advice to businesses dealing with restructuring, mergers, and acquisitions. As well, they can teach entrepreneurs about different tax incentives and credits.
Financial Statements: Accounting for small business services are for businesses who don’t provide the results of audits to third parties. These financial services include the preparation of financial statements completed off the data that is provided by managers. As well, an accountant will review this information to see if the financial statements contain any errors that need correction. The review process isn’t as comprehensive as an audit, but a certain degree of accounting knowledge is required as well as the industry the business is in.
Payroll: There is a lot of work involved to process payroll. The majority of the work is completed with software so it’s fast and reliable. However, a lot of entrepreneurs don’t know how to use it properly.
As well, there are other tasks involved with payroll that an accounting firm specializing in small business accounting can perform. Such as, worker’s compensations, employee benefits, payroll taxes, and 1099 tax reporting. Along with the above four services there are many more that an accounting for small business firm can do for business owners. It’s up to them to discuss with the accountant what other services they can help them with for their specific needs. Outsourcing accounting functions saves a lot of money in the long run.
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