Proper accounting promotes small business success by providing insights into its financial health, providing cash flow reports, and making it easy to identify growth opportunities. Small business owners can choose to manage their accounts or hire professional accountants. If you don’t have any accounting knowledge or expertise, hiring expert Australia-based accounting services is prudent. These experts provide the following essential accounting services for your small business.
1. Master Bookkeeping
You shouldn’t let bookkeeping tasks intimidate you. Bookkeeping is probably the most basic accounting service that involves tracking and monitoring business financial records, including payments and revenue. One of the primary goals of running a business is to make profits. However, you can’t realize if your business is making profits if you don’t have the right information. Proper bookkeeping enables small businesses to:
- Know if they are making profits or on the right track
- Evaluate if the business is experiencing financial risks
- Simplifies tax season by organizing information required to file taxes
2. CFO Services
For small businesses to grow, they need to hire additional employees and open branches in multiple locations. However, while such growth is good for business, running businesses in various locations leads to cash flow and tax issues. Small businesses experiencing such growth may benefit from the services of a chief financial officer (CFO).
Professional accountants with sufficient knowledge and expertise can provide chief financial officer services to small and large businesses. Traditionally, CFOs were tasked with overseeing all finances of the business, monitoring costs, preparing budgets, analyzing financial data, and generating reports of the overall financial health/performance of the business.
Unfortunately, small businesses may find it expensive to hire and maintain in-house CFOs. As such, hiring online accounting services is a viable option, as they get expert services for a fraction of the costs. Apart from saving on cost, hiring online CFO consulting services is beneficial for small businesses in many ways, including improved cash flow management, accurate reporting, and reduced financial risks.
3. Filing of business tax returns
The tax season is a stressful period for most small business owners for good reasons. Filing taxes is complicated, especially with the rapidly changing tax regulations. However, with proper accounting and with the help of online accounting service providers, small businesses can alleviate these headaches.
While there are many types of business axes, the following are common for small businesses:
- Income tax – Small businesses should pay a portion of their profits to the government
- Sales tax – Depending on the nature of your business, you may have to include sales tax in your client’s invoice.
- Employee taxes – If you have employees, you should collect taxes from their paychecks.
4. Creation of financial reports
Financial reports are important as they guide various business decisions. Common small business financial reports include:
- Cash flow statements
- Profit and loss reports
- Balance sheet
Accounting services are important for every business. However, with limited capital, small businesses should save on the cost by engaging online bookkeeping and accounting service providers. This eliminates the costs associated with maintaining in-house teams. Geekbooks provide professional accounting services to small businesses, helping them maximize profits.