Chances are if you own a small business, you don’t probably have a big budget to spend on managing financial transactions. But, every business whether big or small, needs to keep a track of the expense and revenue. So, the question is, what is the Small Business Accounting Fees? In this article, we are going to discuss this topic in brief.
What are accounting costs?
In simplest terms, any expense paid by a company can be added to the tab of accounting costs. Accounting cost is usually calculated by subtracting the expenditure from revenue.
When should a small business seek financial help?
Do you find it impossible to take out time off your schedule to track the expenses of your company? Or are you having trouble making financial decisions by yourself? If a load of managing the books is preventing you to think about the future of your company, hiring an accountant might take some load off your schedule.
What services does an accountant offer?
An accountant will offer the following services:
Bookkeeping and payroll: Bookkeeping is keeping track of the financial transactions of a business. A bookkeeper generally performs the following tasks:
- Keeping track of billing records
- Managing the general ledger and bank statements.
- Reconciling accounts at the end of the month
- Tracking sales
- Filing returns
- Handling transactions
- Determining property depreciation
Accounting and auditing: This is one of the main jobs of an accountant. Your accountant will prepare tax returns, track expenses and revenues, and process financial records. The accountant will evaluate and audit all the financial records to provide you with a consultation for your business. This will give you an idea of what your company needs and what is the future of it.
Tax planning: The accountant analyses a financial situation to look for all the available exemptions and deductions and hence maximize profits. This is known as tax planning. This can help your organization with tax efficiency. Tax planning is an honest approach to save money that comes within the framework of taxation law.
Accounting fees for a small business
The accounting fees to manage a small business vary on the level of expert you hire. A bookkeeper will keep track of transactions, process payrolls, and invoice customers. Whereas, accountants will do advanced tasks like filing taxes and generating statements. It is also the duty of an accountant to analyze financial situations and give constructive advice.
The fees for a financial service depend on the work that needs to be done. An accountant usually charges a certain fee per hour of service. The monthly accounting fees for your small business will increase as the business grows and you add more tasks. The fees charged by a bookkeeper are cheaper than that of an accountant because they perform simpler tasks.
Naturally, a very small business will have trivial financial affairs. Hiring an accountant at this stage makes very little sense. But as the business grows, the complexity of the financial affairs increase. Higher revenues will attract stricter tax rules which can often become overwhelming. In situations like these, hiring an accountant is a smart move. An efficient accountant will take care of bits and pieces of accounting and bring in more profits for your company.
FAQs:
1. How do I pay my accountant?
A: Based on the accountant you hire, you may be charged weekly, monthly, quarterly or yearly.
2. What does an accountant expect from their employer?
A: Being transparent, responsive, and punctual will help your accountant to perform more efficiently, which is applicable in every professional dealing. This will help your accountant to meet your tax payments and deadlines.
3. How to select the right accountant for my company?
A: Ask these questions to the accountant you are about to hire:
- How can you help with tax exemptions and deductions?
- How well do you think my current accounting system and processes are?
- Are you familiar with the challenges of this particular industry?