Small business accounting: Your questions answered
Most small business owners find accounting daunting or even worse boring! This can easily be resolved by answering the most fundamental questions you as a business owner might have.
The following questions might seem simple but answering them will help you make the best decision for your business:
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What is accounting really?
In one phrase accounting is simply the act of “organizing your financial data”. On a very basic level accounting is the indication of money flowing in or out of your account. Therefor accounting entries need to indicate at the very least the date the transaction occurred, the accounts that are involved, the amounts that were paid or received followed by a brief description and of course the relevant reference number.
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Will I be able to do it myself?
This comes down to the size of your business. When our dealing with a small one to two-man operation the amounts of transactions are still little. However, as soon as your company starts taking off and gaining tractions those transactions will start pilling up and create major admin if not dealt with correctly. There comes a time where you’ll need to weigh out whether you will have enough time to manage your financials and still have enough time to run all other aspects of your business. As soon as too much of your time is spent behind the calculator its time to outsource!
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What are the options out there for accounting services?
As mentioned above you will be able to manage on your own for a start but as soon as the ball gets rolling too quickly you might loose control. There are two major avenues you can follow, outsourcing your accounting or hiring an in-house accountant. There are many options for outsourcing your accounting needs. This can get a bit tricky as you will only know what you’re getting once you’ve paid for the service. This will come down to what your budget is as the quality of service you’ll get will correlate with how much your willing to spend. The other options are hiring in an in-house accountant this is the more expensive option out of the two. This does however give you much more control over your accounting but limits you by the skills of the person you have hired.
You’ll have to weigh out the pros and cons to determine which options fit best.
If you are a small business with big aspirations, the near future of your accounting might seem daunting. When you start considering your outsourcing options you’ll quickly learn that its difficult to find the accountants that suit you best. The professional team at Leading Edge specializes in taking care of your business accounting the way you want it.