There are many strategic advantages to adding expert financial support to your small to medium business (SMB). Small business accounting and bookkeeping services provide essential tools and facilitate keeping track of finances in order to manage cash-flow and stay compliant.
Prioritizing Finances
As a business owner, you must record all financial data. Therefore, your top priority should be to get on top of your books. If you don’t have a full-time finance team on board, partnering with an experienced accountant or bookkeeper is advantageous. Part-time or contracted professionals can provide payroll, bookkeeping, tax preparation, and financial reporting services.
With the assistance and guidance of a diligent accountant or bookkeeper, you will never have to worry about not knowing how much money you have in your bank account or how much tax you must pay. Taxes filed correctly and on time will minimize the chances of your business being audited by the IRS.
Small Business Accounting vs. Bookkeeping Services
Often used interchangeably, accounting and bookkeeping are both services that are finance focused.
Business accounting involves analyzing and interpreting complex financial data to understand an organization’s financial health and performance. The data is used to create error-free reports and forecasts. An accountant can also generate statements and offer business advice and in-depth financial management guidance.
Bookkeeping requires entering financial information into ledger books or cloud accounting software, and recording all the money that goes in and out of a business. Other bookkeeping tasks may include:
- Data entry
- Keeping accurate transaction records by collecting and storing receipts, invoices, and bank statements
- Paying bills and processing payroll
- Reconciling bank statements
- Paying taxes
Investing in Expert Financial Support
While accounting and bookkeeping are fundamentally different practices, there’s a strategic advantage to using both for your small business.
The cost of hiring an outsourced accountant or a bookkeeper depends on the type and amount of work that you assign to them. When you engage their services, your business will gain finance experts that save you time, money, and a full-time salary with employee benefits.
Experienced and accredited finance professionals abide by high standards of integrity. They will accurately maintain your financial transaction records and data, in turn allowing you to focus on building a successful and profitable business. As outsourced accountants and bookkeepers work with many clients in specialized industries and niches, you’ll also benefit from their vast business experience.
When to Hire Accounting and Bookkeeping Services
Many owners of SMBs assume that accounting and bookkeeping are not essential requirements until the business shows significant growth. However, the best time to invest in expert financial support for small businesses is today. By allocating part of your budget to hire outsourced accounting and bookkeeping services, you’re making a smart move that will benefit your SMB in both the short and long term.