Are you thinking of starting a small business doing what you love the most? Are you feeling overwhelmed with all the financial management, accounting complexities and bits and pieces that need to be ticked off to get your small business off the ground? Starting a small business is an adventure – it involves a big learning curve. And it is easy to get it wrong and make mistakes along the way. You want to build your small business pursuing your new product of innovative service. But have no idea how to how to do financial management and other basics.
A recent bank study has revealed that eight out of ten businesses struggle with poor cash-flow management. It’s so easy for your new business to fall prey to cash-flow issues. Irrespective of what service or product your small business specialises in. You cannot understate the value of using accountant services for small business. Working together with a specialised accountant service for small business can take care of the more complicated accounting and payroll services for your business. In addition, accountant services for small business can assist you with tax planning and also prepare taxes for your business. Furthermore, your accounting partner can share strategic advice on how you can continue to grow your business.
When you are running day-to-day operations of your small business, it is highly recommended you outsource to an accounting firm that specialises in accounting services for small business. Researching the right firm for the best fit to you and your business can be a daunting task. Before you can choose the right accountant for small business, it is best to know a few key basics to set up your business for success.
Understand cash flows
Cash flow is the money that is coming in or going out of your business during certain specified periods of time. Money coming in is classified as positive cash flow. Money going out is classified as negative cash flow. Primarily – you want your business to have a positive cash flow.
While your business lifts off the ground, you may have more negative cash flow rather than positive cash flow. As you invest in equipment, inventory or marketing. It is important to have a view of how much your cash flow, and a complete understanding of how much money is being spent – and if it is more than what you are earning.
Meticulous bookkeeping can be challenging for new business owners to upkeep. Outsourcing to accounting services for small businesses can assist you with maintaining a cash flow and can help you understand how your cash flow caries throughout the year.
Tidy the books
Working together with an accounting service, it is important to have a firm grasp on all aspects of your cash flow and its ongoing success. In addition, establish a method to document moneys earnt and moneys spend.
It is very helpful having your numbers easily accessible. It allows you to quickly view and track payments, schedule expenditures, and identify your most profitable goods and services.
Your business can benefit from having an accountant work for you, or outsourcing to an accounting service for small business. If you decide to have an accountant work for your business, it may be difficult to find, recruit and retain knowledge and expertise. Many small businesses chose to work together with an accountant service for small business.
Small businesses that opt for using small business accounting software may perceive that they can eliminate a professional accountant. This is definitely not the case. A professional accountant that offers accountant services for small business can assist you in preparing your taxes and advise you on the correct and maximum advantageous filing. In addition, your professional accountant for small business will ensure you are complying by wage compliance taxes, payroll taxes, and business taxes.
If you work on your own tax documents, you may save yourself the money of outsourcing to an accountant service for small business. However, when you work with a good accountant, they can use their tax and legislation expertise to suggest ideas on how you can increase your cash flow, decrease costs and even raise capital for business expansion.
Know government legislations
It can be very difficult dealing with the government paperwork when you are trying to get your business off the ground. Hiring an accountant service for small business can also assist you in coping with more than just your tax returns. They can also help you cooperate with government legislations.
A good professional accountant service for small business can help you:
- File all the right legal and compliance documents for your business
- Ensure your business is up-to-date with the tax laws
- Update your business status on the government company register
- Prepare annual accounting reports
- Record keeping
- Manage your payroll – from employee’s tax codes are recorded correctly, paying payroll taxes, and to ensuring payments are processed in a timely matter
- Assisting you with record sharing / stock allocation in relation to business partners and equity investments.
- Not violate any tax laws.
The government is always watching small businesses, and it’s best to hire an accountant service for small business before you are audit ever happens.
You may need to invest cask into your business at a point in time. You may find yourself in the situation where you need to find cash “outside” your business – whether it be to cover a short-term cash flow issue or invest in future growth. It’s good to be across the range of financial management options that are available to you. Some of the most common types of financing options for small business include:
- Bank loans: Your business may be eligible to chose from a variety of loan types, with terms and repayment options that are right for you and your business. If you work together with an accountant service for small business, they can assist you in searching and selecting a loan that will benefit you and your business. In cases where you need money immediately, a short-term loan may be the only answer for you. This may cover payroll or emergency expenses. Short-term loans pose a greater risk, but they can retrieve you from a sticky situation.
- Grants for small businesses: A small business grant does not need to be paid back! There is a catch… Firstly you need to research all the current grants accepting proposals, and you need to meet all the criteria, compile the application and go up against other businesses seeking the same funding. However, if you do win the grant, it’s all yours to use towards your business.
- Crowdfunding: This is a source of financing that is becoming more and more popular. Crowdfunding is funding a project or venture through asking a large number of people – typically through the internet. A business gaining funds usually offer something in return for a donation to their business. This may be merchandise or exclusive memberships.
- Venture capital: Professional investors may want to invest in your business if you have a high-growth potential. Funding from venture capitalists can be a significant sum, and may come with strings attached including the investor wanting a share in the company which may involve a shift in the decision-making power.
Starting a new business may be a headache, but your business financial management shouldn’t be.
Financial management do require more than just keeping track of your profits – which is why we always recommend you work together and hire a professional accountant service for small business firm. Outsourcing your accounting will empower you to continue working on building your business and your accountant figures out all the numerical stuff. To hire the professional accountants, you need for your business, R T Taxation & Accounting Services. You can take advantage of our Outsourced CFO Services to leave the administrative hassle of running your small business to the experts and for you to do what you know best.