When you own a small business, it is imperative that you keep a good set of books that are consistently and contemporaneously updated. The tax man will not be satisfied with records that were thrown together at the end of a year.
Tax preparation is a key reason to maintain a detailed set of books, but there are other factors at play. It’s important to know how much money your business is bringing in along with how and where the money is being spent. Compare your results to industry standards to determine where you need to improve your business model.
In the past, small business owners have had three options when it comes to business bookkeeping: handle themselves, utilize online bookkeeping programs or outsource to a CPA. Small businesses embrace online tools for their lower dollar cost, but without accounting expertise, spend valuable time trying to figure out tasks in desperate need of a human being for guidance. CPAs, on the other hand, are expensive and localized.
Greg Jones, founder and chariman of BookKeeping Express
So try going the middle route. There are many qualified bookkeeping services that don’t charge as much as a CPA but can deliver exactly what you need. The trick is to be sure the person or agency you engage knows what they are doing. You may want to have your tax professional or a qualified CPA refer you to someone who can help you or review their preliminary work to determine if they are handling your books accurately and completely.
This post was originally published on: Fox Small Business Center