Small business accountants are responsible for the most critical functions of an organization. Their work involves tedious activities such as analyzing, interpreting and presenting intrict data. Unlike bookkeepers who mostly monitor and track daily transactions of a business, accountants are involved in business planning and management. Many small-scale entrepreneurs overlook the duties of an accountant and prefer to employ a bookkeeper who knows how to do simple journal accounts. What such entrepreneurs do not realize is that small business accountants are multi-purpose professionals. They can offer the following five services in addition to data entry work.
Financial Consulting – Small business owners are easily tempted to mix personal and business finances. An accountant can advise them on how to separate and invest both personal and business finances in profitable ways.
Tax Consulting – The issues of tax plagues many small-scale businessmen. Most of them want more than just having their tax forms prepared. Small business accountants are actively involved in tax planning and counseling in order to help their clients spend less money on taxes and avoid tax related issues with the IRS.
Internal Business Consulting – Accounting firms that specialize in small enterprises services are perfect consultants. They consist of large teams of experts in various fields of business such as Accounting, risk management, inventory management, human resources, auditing and taxation, financial planning and Information Technology among others. As a result, they are dependent when a small-sized organization is seeking a growth and an expansion strategy.
IT services – Small business accountants have changed the way they carry out their duties because of the ever-changing Information Technology field. In the few past years businesses were faced with the challenge of introducing computers to their work stations. Today the internet development has spoken about major changes in the accounting work. Reliable clerks should not only up-date the existing accounting software versions but also provide advice and guide entrepreneurs on IT matters.
Borrowing Advice – Since an accountant prepares the loss and profit accounts of an organization, he or she is in a better position to offer borrowing advice. If the company lacks enough money to maintain its projects or add others, an accountant can advise it on the best lenders to approach and if there are other viable sources of funds.
Proper choice of small business accountants should not be disregarded. A business owner or manager must decide if the best candidate should work on a full-time or a part-time basis. To make this decision he or she must focus on the cost of hiring any of the two candidates. The best part-time bookkeepers are outsourced accountancy firms. They control the functions that take place in a remote accounting department from their office. These firms do not require health benefits, office space or any other requirements that a full-time in-house small business accountants do.
When selecting the most appropriate small business accountants one has to focus on education background and competency levels. Certified Public Accountants are accepted everywhere in the US. They have passed various tests that are offered and administrated by their states. They are knowledgeable in many areas of the accounting and finance profession. When interviewing a representative of an accountancy firm or a CPA candidate, a small-scale business proprietor should ask questions about the hourly fees that would charge. He or she should also ask if the fees charged include other advisory services too.