No matter the size of your business, accounting services are an integral part of your company’s current and future success. By tracking and analyzing your income and expenses, accounting helps you to gain a better understanding of your company’s financial workings, as well as any changes which should be made. But before you can get to work on planning your company’s financial future, you first need to decide who will be handling these accounting tasks.
As a business owner, you can manage your business accounting personally, or you can work with an experienced accountant. These financial professionals, like our team at Estess CPA, can offer services including financial statement preparation, risk assessments and, in some cases, company audits. In short, an accountant is there to ensure that you are making smart, legal business decisions based on accurate data while also freeing up hours of your time which could be better spent managing your company.
What are Business Accounting Services?
Accounting is the process of regularly recording and analyzing a business’ financial transactions in order to create a complete and accurate picture of its operations and financial state. Business accounting tasks often include ensuring compliance with laws and regulations, tax planning and filing, and offering financial advice. Some accountants also take on bookkeeping services, including the management of your general ledger. That is, a regularly updated account of information including your company’s assets (what you own), liabilities (what you owe), revenue and expenses.
The financial professionals who complete these tasks generally take one of two forms: accountants and certified public accountants (CPAs). While they often serve similar functions, CPAs must complete certain education and work requirements, as well as a comprehensive examination, before earning their license from their state’s Board of Accountancy. As such, CPAs may take higher-level positions, have a more extensive understanding of financial topics, and be able to complete more complex tasks than accountants, who often only have a bachelor’s degree. For example, a CPA may represent their client in front of the IRS if necessary.
What Can Accountants Do for Your Company?
While the services an account can provide may differ depending on their degrees or training, some of the primary tasks you can expect to be handled by your accountant include:
- Recording business transactions including sales, purchases, and accounts and loans payable and receivable. That is, what you owe suppliers and lenders vs money you are owed by customers and borrowers. This information may first be recorded in Books of Original Entry before being transcribed into ledgers.
- Create and review financial statements. These reports—which include balance sheets, income statements and a statement of cash flow—summarize your company’s financial history and performance in order to help you plan for the future. Financial statements may also serve to offer company insights to bankers and investors, among others.
- Tax planning—including identifying applicable write-offs and credits—and filing
- Payroll management
- Bank reconciliation, or comparing your company’s financial records with your bank’s records in order to identify any inconsistencies
- Financial advice. Accountants can use the knowledge they have gained about your business’ monetary health to discuss topics such as areas of concern, sustainable business growth strategies and how best to manage your finances in order to increase your income.
- Sending and tracking customer invoices, as well as paying invoices from suppliers
- Creating financial forecasts—that is, using existing financial data in order to create an estimate of your company’s financial future
- Financial risk assessments, or identifying potential risks—such as changes in the market—in order to make informed business decisions
Benefits of Hiring a Business Accountant
To some business owners, accounting services may seem like an unnecessary cost. After all, what can they provide that you can’t manage yourself?
The answer to that question is a wealth of experience and financial understanding. Accountants are an invaluable resource for any business owner, as their skills allow them to assess your company’s financials, glean insights which an untrained eye may miss, and offer benefits including:
- Accurate financial statements and tax returns. Missing or incorrect information may not only cause you to make poorly informed business decisions, but also force you to refile your taxes or pay fines and penalties.
- Ensuring that your financial statements are compliant with financial laws and regulations such as generally accepted accounting principles, or GAAP
- Saving time and reducing stress
- Minimizing your tax liability
- Helping to choose and set up accounting software
- Budgeting assistance in order to help you save money
Choosing Between In-House and Outsourced Accounting Services
When choosing an accountant, one of the first things to think about is whether you want an in-house accountant or outsourced accounting assistance. In-house accounting means hiring an accountant for your team—someone who will be there full-time to manage your finances. However, for small businesses, business owners who only need occasional accounting assistance or companies who require specialized services, an in-house accountant may not provide everything you need.
Outsourcing accounting services often means partnering with an accounting firm in order to receive accounting assistance on an as-needed basis. Because you are often working with a whole team of people, you are more likely to receive a wider range of services, and you can always ask for different resources as necessary. Additionally, because they are not full-time employees, working with an accounting firm may be better for your budget.
Maximize Profits and Plan Your Company’s Financial Future with Estess CPA
Business accounting service are an important tool for any business owner looking to improve and maintain their company’s financial health. Not only can accountants assist you in making smart business decisions, managing medium- and small-business bookkeeping, and creating financial forecasts and risk assessments, but they can also save you an ample amount of time and stress. And when you work with an accounting firm like Estess CPA, you can be sure that you’ll receive a wide range of skilled accounting assistance. With over 20 years of experience serving small- to medium-sized businesses in New Orleans, we offer a variety of services to help you maximize your profits and create a strong foundation for your company’s future. If you would like to learn more about our business accounting services, or if you are interested in working with our team, give us a call or send us a message today.
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