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Accounting for small businesses is an important function that should not get overlooked. The accounting function encompasses three broad categories of necessary tasks:

  1. Recording the financial transactions ie: Bookkeeping.
  2. Classifying these transactions:
    1. Current Assets
    2. Property, Plant, and Equipment
    3. Liabilities
    4. Owners/Shareholders Equity
    5. Revenues
    6. Cost of Goods Sold
    7. Expenses
  3. Reporting
    1. Balance Sheet
    2. Income Statement
    3. Statement of Cash Flows
    4. Expense Report

Setting up the accounting system is an important first step when starting any business. You will need to provide your tax preparer with the company reports to use on your tax returns. You will need to pay Self Employment Tax for the owner or owners of a sole proprietorship or partnership. You might need to impress investors with your business idea to expand your operations.

These set the stage for part of the success of every business, big or small. Adequate and timely accounting will go a long way in helping the small business owner know the details of their business’s transactions. We can help with most aspects of accounting for small businesses. Even though accounting software like QuickBooks do many things behind the scenes without requiring the user to have accounting knowledge, it is helpful to have experience on your side.