You have just purchased a new franchise or are taking baby steps with your small business. What is the first thing you need to focus on? If your answer is taking care of the accounts and bookkeeping, then let me tell you, you are on the right path.
Bookkeeping is integral to a business; you must consider its importance. No matter how much you try to do the daily bookkeeping yourself, you can't deal with the later-on accounting problems. One small mistake in the accounts will impact your business's overall image.
But you don't have to worry about that because there are many bookkeeping and accounting services available in the market that you can use for your small business bookkeeping and accounting needs.
Read on to know all about what services you might need from an accounting firm and how they will help you.
Accounting For Franchises And Small Businesses
You own a small business or a franchise, and now the most important thing after this is to take care of the bookkeeping and accounting transactions to get reports. When you are to own a franchise, you have to pay specific fees, and after that, you get the ownership rights of that company. At first, you will have to pay an initial franchising fee, and then to own it, you have to pay the royalty fees. Later on, there can be some additional fees, too, like marketing funds.
Any small mistake in these transactions or other accounting-related matters can harm your business. So, to keep up with these, you need to have proper accounting services.
The same is the case with small business bookkeeping and accounting services. From making financial statements to tax planning, these tasks are only taxing for one person if you are professionally trained.
Some Essential Bookkeeping And Accounting Services Your Business Needs To Have
Now, many services are available in the market regarding accounting and bookkeeping services. Sometimes, the service providers overcharge you by paying you for the services you can quickly deal with. However, it would help if you had a professional accountant in many accounting matters. You can hire many firms in the market for your services, but be mindful of what services you should take from them.
To make it easier for you, here we have listed a few essential bookkeeping and accounting services your business needs to manage all its accounts.
Financial Statement Preparation
Financial statements are invoices that a company can use to track its sales, expenses, and revenue. It can also be beneficial for future investors and stakeholders. The main types of financial statements are monthly income statements, cash flow reports, and balance sheets.
Through accounting services, you can get these made regularly. To make a (accurate) financial statement, the accounts person will go through your supplier invoices, see if they are paid, then through your deprecation value, and finally reconcile and review your bank accounts to make the financial statements.
Business Tax Compliance
It would be best to cover so many taxes in a year that it becomes nearly impossible to keep track of them, but a good accounting company will ensure all the tax laws are complied with. They will let you know which taxes you need to pay when they are due, fill out necessary forms, and keep you up-to-date with any changing laws that might affect your business.
Tax Preparation and Planning
Tax preparation and planning is the most challenging task for a small business. I have seen new business owners spend months understanding the taxes but still need something else. You don't have to waste so much time on this. Just hire an accounting service that suits you for the whole year.
Usually, taxes are paid off by the end of a fiscal year, so you need two to three meetings with the accountant to discuss all the taxes you need to clear. But the planning goes on throughout the year, and if planned correctly, it takes little time to pay off the taxes at the end of the year.
Budgeting and Forecasting
Another essential aspect of small business bookkeeping is budgeting and forecasting. Accounting services record your previous and ongoing sales to predict the future aspects of your company. They do this forecasting by real-life analysis to tell you where your company is headed. You can even allot the budget based on this forecasting. It is very crucial in terms of the long-term growth of your business.
Financial Reporting and Analysis
When running a business, it is hard for you to keep a record of each aspect of the business, and even if you are good at it, the analysis becomes a bit hard. Hiring accounting services will give you a thorough analysis of your accounts. The three main ways of financial reporting and analysis are:
- Horizontal analysis is where you compare the same information with the past 2 to 3 year's reports.
- Vertical analysis is where you compare the effects of certain items on different departments.
- Ratio analysis is where you compare your company with other competitors in the industry.
All this analysis will make it easier for you to keep track of your growth, and you can know the strengths and weaknesses of your business.
Cash Flow Management
Cash flow is all about moving money into and out of the business. For a successful business, the cash flow must always be moving. An experienced accounting service knows how to make positive cash flow for your company. They will monitor that you send invoices on time, lease wisely on the equipment, and secure financing for your company before it is needed.
Payroll Processing Services
Companies deal with their payroll processing on their own, like bookkeeping, but let me tell you, it is not as easy. Some accounting services even offer access to their payroll software, making payroll processing more organized and manageable. It saves you from the hassle of dealing with the burden of paying your employees.
Why You Need Bookkeeping And Accounting Services
Now that we have discussed the types of bookkeeping services you need let's discuss how these will help you and benefit your business.
Augments Business Growth
Having a sound accounting system makes it easier to keep track of your company's growth. The accounting firm handling it will ensure you know what your company is lacking and which areas are the more vital suits of your business. It makes making decisions regarding the growth of business a lot easier.
Saves Time And Money
Hiring an accounting firm or accountant firm or accountant has increased your company's expenses, but you will see how it smoothens your workflow, saving a lot of money in the long run.
Similarly, the hours you spend each night bookkeeping, keeping the accounting record, and dealing with taxes will be none. You can save all this time and spend it somewhere you are more productive.
Keeps Up With Statutory Requirements
When your business is small, there are few legal requirements and tax procedures, but as soon as it grows, you will see that all these federal taxes, income taxes, and many more taxes will pile up to be such a burden for you. Your accounting firm will keep all these clear before time, and it will keep up with all the statutory regulations and requirements.
Organizes The Accounting Process
Professional accounting services means the latest methods of accounting and data organization. You won't have those traditional manual or Excel sheets for your bookkeeping. The accounting services will organize your data in specialized digital accounting software, which makes it easy to access and analyze whenever needed in the future.
Scales Up Your Business
When scaling up your small business or expanding your franchise, the one-person bookkeeping methods must go. If you already have a professional accountant for all these things, scaling up your business will be very easy. They will deal with all the financial aspects of the business, and it will ease half of your burden.
Final Words
Running a franchise or small business is tough, and you don't have to overburden yourself by dealing with every aspect. Take help where needed. The best one is to start with a good accounting service. They will keep up with all your bookkeeping and accounting services. You can only handle a few things independently; if things are too hard for you, a professional will do it better.
Hire a good accounting service in your area. If you can't afford to hire an accounting firm, you can always outsource an accountant in the initial stages of your business. Later on, you can expand these services as per your needs. Now, all you have to do is trust them with their services, and you will see the difference it makes in your business. Your business would never have been in a better position.
Small business bookkeeping is simple, and don't complicate it for yourself, too. Take our advice, hire the right accounting services, and tell us how they helped you