If you are just starting your own business, you are going to need the assistance of an accountant at some point to make sure that all of your financial affairs are in order. However, not all accountants or accounting services are the same. Here are the three main types of accounting services that your small business may need at some point:
The first type of accounting service you are going to need to hire for your new small business is a bookkeeping service. A booking service performs a lot of the day to day accounting tasks that will come up with your business. When you hire a booking service, they may come in every week or every other week to address your books. They generally help you out with the following tasks:
- Monthly Taxes
- Accounts Payable
- Bank Reconciliations
- Ledger Entries
- Financial Statements
A booking service will make sure that all of your numbers add up every month. They will make sure that you pay all applicable taxes, and that all of your employees payrolls are correct and follow the letter of the law in terms of what is withheld from them.
Sometimes, small businesses hire a special accountant or accounting firm to handle their end of the year taxes. This can be especially helpful if you work in an industry that has a lot of different regulations that you have to follow and has a lot of loopholes that you have to jump through. You generally do not need to work with a tax accounting firm on a regular basis; you only need to hire this type of service when you face complications or need assistance with your business taxes.
Some accountants offer auditing services, and there are also firms that specialize only in audits. An audit is something that you may do about once a year in order to make sure that all your company's financial records are accurate and to make sure that your business is doing well.
An auditor acts as an outside service that proofreads or checks your financial information to make sure that everything adds up correctly. If you think funds are missing in your records, an auditor can figure out where the missing funds are. If you think someone is stealing from your business, an auditor may be able to figure out who it is and how they are stealing those funds.
Sometimes, an audit may be ordered by a government organization for your business. This generally happens if the government believes that you are evading paying your taxes and suspects that you are hiding profits or employing other illegal practices.
The three types of accounting services are the most common services that small businesses need. You will need to hire a bookkeeping service right away to help you out with day to day financial tasks. When tax time rolls around, you may need the assistance of a tax accountant. Every couple of years you may want to audit your business to make sure that you are doing as well as you think you are and that nothing illegal or unethical is being done with your money. Contact a company like J H Williams And Co LLP for more information.