All small businesses must track their cash flows and develop financial systems. Luckily, using small business accounting services is an option available to you. You can use these outsourced and online accounting services available to fill these needs for you.
What is an Accounting Service?
As a small business you have two options:
Outsourcing your accounting service
A third-party service provider that maintains your books of account.
Some functions which you could ask them to provide for you on a monthly or periodical basis:
- Keep a general ledger of transactions
- Prepare management accounts
- Manage accounts payable and accounts receivable
- Prepare and submit your annual tax returns
- Prepare and submit the statutory returns to the office of companies
- Submit and pay over statutory employee tax and other deductions
- Attend management, board or shareholder meetings
Provide advice and guidance
If you maintain your books of account yourself, such a service provider can provide advice, guidance and insight. This will help your team to make financial decisions.
Unlike accounting software, this type of service includes a financial advisor or other professional to help you.
Why You Should Consider Using Small Business Accounting Services
Small business accounting services can benefit nearly every company, Especially those that need help managing finances without the available resources.
Here are some specific benefits for small businesses:
- Make better financial decisions. Accountants provide an overall picture of your financial status to improve decision-making.
- Stay on top of tax and statutory returns. An accounting service should also track your tax commitments.
- Save time on bookkeeping and accounting services. Your team’s time may be better spent on high-level work than on catch-up bookkeeping tasks.
- Avoid overpaying for various services. Accounting services also track expenses, which may inform areas you can make cuts or switch to less expensive providers.
- Stay up to date with payments. Falling behind on payments may lead to late fees or interest payments.
How to Choose the Best Bookkeeping and Accounting Services?
If you’re looking for an accounting services for your small business, here are some tips:
- Prioritise financial services. Do you need help with financial reports? Taxes? Bookkeeping? Payroll? List the services you need and look for platforms that support those options.
- Look for essential integrations. It’s easier to get started if your service integrates with the bookkeeping or tax services you already use.
- Consider your budget. How much can you afford each month? Or does it make more sense to pay on demand? Some services even offer free options.
- Try different options. Many accounting services offer free trials. Try them or sign up for demos to see which are most intuitive for you.
- Agree service levels. Discuss and agree the range of services that you require. Get this in writing and signed by yourself and the service provider.