Small business owners understand how difficult it is to keep things on track, especially when it comes to finances. This is where finding a small business accountant comes into play.
This is a professional who can help guide you through the ins and outs of forms, deductions, planning, projections and more. If you’re not sure what to look for in an accountant, here’s what you should know.
What is small business accounting?
Let’s start with the basics. Small business accounting is the method of how a business organizes, records and uses financial information. It’s a high-level overview of how a company is doing financially, including components such as budgets, taxes, transactions and projections.
Small business accounting is unique in that it pays more attention to the smaller details, especially because for most small businesses, every dollar matters. This professional can help business owners understand how the money is being spent and can provide advice on how to help the business thrive.
Accounting vs. bookkeeping
These two terms are often used interchangeably but they are distinct processes. Accounting focuses on a business’ finances and includes functions like tax preparation, tax filing, loan applications, and assistance with creating business plans. Bookkeeping, on the other hand, focuses more on daily financial operations including recording transactions, reconciling statements and payroll management.
Tasks they will handle
How exactly will a small business accountant help a business? Typical accountants are Certified Public Accountants (CPAs) who are skilled in helping business owners understand and navigate their financial records. Small business owners look to hire an accountant to help with various tasks such as:
- Financial forecasting
- Tax preparation, filing and adjustments
- Assistance with maintaining a steady cash flow
- Payroll and fixed asset accounting
- Financial statement preparation including balance sheets, income statements and statements of cash
Red flags to look for
Not all accountants will bring the same value to the table. It’s especially important to find a qualified and trustworthy small business accountant as they can have a huge impact on the success of your business. Be careful during the interview process and take your time to find a qualified professional. Some red flags include someone who doesn’t communicate well, an accountant who doesn’t believe in the importance of keeping receipts, someone who asks to sign documents or checks without explaining what they are for, or not receiving estimates for services until after the tax refund amount has been determined.
Founder's CPA can help
One of the most important aspects of finding the right small business accountant is working with someone you can trust. At Founder’s CPA, our team offers modern accounting services for a range of businesses. We’ve helped over 500 clients navigate various business challenges to help them grow into successful, thriving companies. If you’re interested in learning more and taking advantage of our free 15-minute consultations, please contact us today.
