If you really think about it, the purpose of owning a business isn’t only for self-accomplishment, but for the money that’s involved. Everyone wants to own a prosperous business that will have them financially set. Apart from running it correctly, you will need to make sure your finances are being handled properly. Just about any business can witness financial success, but if it isn’t managed properly, the money can go right back out the door, bringing the company on the verge of bankruptcy.
Some companies decide to do their finances on their own; this is easy to do with the various software programs out there, like Quicken and Quickbooks. These programs allow you to insert your earnings and expenses, so that when tax season come around, you can accurately report them. On the other hand, there are others who would rather have a professional finance their accounting books instead of doing it themselves with software. In this case, you will need to find the right accounting services to take care of everything for you.
A lot of the bigger corporations use big financial firms, like Deloitte & Touche. The smaller finance companies and individual accountants are also used a lot because they are sometimes equally efficient, but more cost effective. Having the extra help relieves some of the stress of running a business.
Hiring Accounting Services
When you begin looking for accounting help, you need to understand the difference between bookkeeper and accountant. An accountant cannot do your bookkeeping because they aren’t licensed to do that. An accountant is only able to prepare your financial statements and file your tax returns. Bookkeepers do more, so they will cost you more. The accountant takes a look at your financial statements and uses that to report it to the federal government. A bookkeeper will be more of an inside person and will manage the finances of the company.
The bookkeeper will keep track of the income and expenses of the business; this person is usually a full-time worker. If you ever want to know if you can afford an expense or how much your company has, you would go to your bookkeeper.
Before you begin searching for accounting services, you should know exactly what type of services you are looking for; this way you won’t overpay for services you don’t need. Some of the services you may be looking for could include payroll services, invoicing, general bookkeeping, tax preparation, financial reports and/or someone that will give you advice on cost savings. Some financial firms will provide all of these services and others will only offer some. One of the top professionals you could hire are EAs, or Enrolled Agents. These are finance workers who are licensed by the federal government – they have to pass a rigorous IRS exam, so they make great savvy accountants, but don’t have the level of degrees as a CPA.
Hiring an accountant or bookkeeper can be a bit costly, depending on the provider you go with. Some can charge between $50 and $300 an hour while others charge a flat monthly rate for their services. If you go for specific services, you may be able to find someone skilled at it, but don’t quite have the level of training a CPA has – this can save you money.
If you decide to go with a bigger firm, get the names and numbers of the individuals you will be working with directly. You want to always be able to get in contact with the people who are running the finance department of your business. Do your research about an individual or company before hiring them to ensure that they hold the same values as you and your company.
Hiring a great accountant can help you to save money. Shopping for products on Groupon is also a good idea, which will give you access to cheaper products from brands like Sam’s Club and Walmart.