3 Things to Know about Small Business Accounting Services

When considering small business accounting service, it is important to look for a relationship, not just a transaction. Your accounting professionals can be a huge ally in the growth of your small business, but, they must understand your goals and needs to best serve you. Here are three things you should be looking at when working with a small business accounting service provider in Boulder.

  1. The Type of Business Entity

Whether you are an LLC, an S Corp or a C Corp is an important distinction in filing and remitting taxes and the estimated payments. The small business accounting services provider should be familiar with your specific entity, as well as the others. They will make sure you are doing the right things to reduce the chance of an audit, and also guide you in making a wise financial decision in changing structures if needed. How the owner is paid, and therefore how the income lands on a tax return, is also dependent on the business structure. Knowing which schedules to complete, and having them done with accuracy, is important to avoid fines/penalties and/or interest.

Tax planning and preparation should be proactive and happen throughout the year, rather than just annually, especially as you grow. Access to your tax professionals through the year can help you make corrections if needed, before you are hit with a bigger tax liability at tax season.

  1. In-House Payroll

Many small business accounting services providers offer payroll services for a good reason; keeping them in-house can be costly. Ironically, many small businesses state the reason for not outsourcing is due to the expense, but they aren’t taking into consideration the hidden expenses. (Some reports show up to six weeks a year is wasted on inefficient payroll tasks handled in house.)

What are the other hidden expenses? Costly mistakes such as failure to remit the correct taxes, payroll benefit deduction errors, compliance, and not tracking legislative updates can all add up. Concerns about compliance and other specialized skill needs can be resolved in a more cost-effective way by allowing an outsourced small business accounting service to handle your payroll. Additionally, the accounting firm can enter the ledger entries without error to keep you and your books up-to-date and accurate. When you consider doing your payroll in-house, keep in mind the skills and time required to

  1. Calculate employee earnings.
  2. Calculate tax withholdings, including Social Security and Medicare.
  3. Calculate benefits deductions.
  4. Enter payroll deductions into your ledger.
  5. Keep records of payroll data changes current.
  6. Prepare and fill appropriate tax documents with Federal, State and Local tax agencies in a timely and accurate manner.
  1. Month-to-Month Records Accuracy

Month-to-month transaction tracking is important for everything, from budgeting to cash flow to getting a loan. Staying on top of transactions with monthly reconciliations helps save money over the long run by catching mistakes quicker. Organized book keeping allows for better decision making on purchases, better forecasting to determine if goals are being met, or if corrections need to be made.

Small business accounting services can help you focus on your business, by allowing you to free up time to interpret financial data rather than inputting it. It can be done faster and likely more accurately, by someone who specializes in accounting, so you can continue to specialize in your business.

Choosing to outsource your small business accounting services in Boulder to a reputable firm is a step towards business growth and success. Meeting your needs now, and into the future, Scher Group can help you with tax planning, tax preparation, monthly accounting services and payroll needs. If you are ready to manage and grow your business with a trustworthy team of accounting professionals by your side, contact Scher Group today.

 

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