Types of Accounting Services for Small Businesses

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Source: business

Keeping track of all your bills and expenses is not an easy task, especially when you have even more important things to deal with as a business owner. This is why we have a very special role that’s mandatory in both smaller and larger enterprises, an accountant responsible for all of those things that we mentioned above.

The great thing about accounting services is that you can outsource them, so even if you don’t have a person who’s skilled to fill such a role on your team, outsourcing is always a good and reliable option. Although it doesn’t sound like a very complicated profession at first, we would like to ensure you that there’s a lot more than what meets the eye, and that’s exactly what we’re going to talk about today’s article.

If you’re eager to learn some more about all the different types of accounting services that suit smaller businesses and enterprises, you’re more than welcome to keep on reading until the end. Without any further ado, let’s take a look at what you need to know.

Accounts Receivable

Source: mscweb

The first and most important thing when doing any type of business is to receive money. The way you receive your profits nowadays is by electronic methods, but that doesn’t mean that you shouldn’t or cannot have clear evidence of it. Not only that, but you can make all collections happen even faster when you have a person dedicated to this role.

The problem with smaller businesses is the fact that they don’t have a lot of employees to manage all things of this kind, so sometimes completely missing a collection date or not getting paid at all is also possible, leading your economy into a huge loss.

Forensic Services – Investigating

Source: Emerging Consulting Group

We all know that frauds in the corporate world happen often, and when something shady goes on in the finance sector, you need a forensic service that will allow you to investigate the situation and find out what happened. Since these things are not as common in one particular smaller business, owners usually outsource people who specialize in this field, which is something that you can do as well if you need it.

In large businesses, a forensic accountant works parallel with the rest of the members in this field, but as we mentioned above, that’s not required in smaller enterprises and teams that consist of less than a dozen members.

Payroll Caretaking

Source: ocalataxprep

Every employee needs to be paid regularly, but that’s not an easy task as well when you have a dozen of them. Thankfully, some people specialize in payroll caretaking, and their role is to make sure that each monthly payment is of the right amount and at the right time and date. That’s not their only job however, because they also have the responsibility to take care of all the expenses when it comes to federal taxes.

Bookkeeping

Source: williamdudleycpa

This is one of the most basic forms of accounting services that you can get, and you can find a person fulfilling this role in almost every smaller business. All transactions and expenses are logged by the bookkeeper so that later you can have clear evidence for every part of your budget.

It’s very important to have a bookkeeper to track your economic growth and the rate at which your expenses grow shortly. At wizzaccounting.co.uk, you’re able to find online accounting services, so even if you are unable to find professionals in your area, hiring online can be a truly life-saving option. Besides, it’s much easier to hire through the internet, especially during these difficult times when a lot of people have to remain quarantined and work from home.

Accounts Payable

Source: pcmag

This is the complete opposite of Accounts Receivable, but it’s equally as important. The role of a person that’s assigned to this position is to take care of everything that involves paying for other services, purchasing goods, and correcting any previous mistakes of the executives. If the owner paid the same bill twice, for example, the job of this person is to notice it and try to resolve the issue. All of the expenses are managed by them.

Now some people might confuse this role with bookkeeping because as we mentioned above, the bookkeeper also tracks these actions, but in businesses that have hundreds of employees, this is a separate role. Depending on their position in the company, they can even make payments on their own, with the previous permission of the owner.

Why you need to hire or outsource

Source: medium

The goal of every business, no matter what size it is, is to make a profit and grow year after year. Without keeping very close and detailed track of all your expenses and transactions, you won’t be able to have a clear picture of your progress.

If you as a business owner have a lot of other things to take care of, you won’t be able to do all things at once all by yourself, especially if you’re not skilled in the accounting field in the first place. That’s not the only reason though, so let’s take a look at a few more.

When a business owner hears the term “hiring”, they immediately think of an expense, but not many of them realize that by hiring an accountant you’re saving money in the long run. Why? Because a professional accountant will be able to show you a plan of the most tax-efficient way to run your business.

Hiring vs outsourcing

Source: medium

Some businesses work a long time on a project, but they only sell every once in a while, meaning that they don’t need an accountant on board at all times. When the time comes to monetize the product and begin with all the transactions, outsourcing can be a great option. However, if you are a business that constantly sells products or services, and transactions are something that you face daily, we recommend that you hire a dedicated accountant instead.

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