Small Business Accounting: How to Choose an Accountant

A small business is an enterprise that is usually small in scale in terms of number of employees and/or sales revenues. A large majority of the businesses in the United State are small business. These businesses are usually registered as sole proprietor, meaning one individual owns it, or partnership, meaning 2 or more people owns the business.

One of the problems facing a small business is in terms of accounting. With the limitation in funds, some accounting is done by the business owner. The entrepreneur is tasked to run the business and at the same time handles the day-to-day accounting requirements of the company. Because of this, the company is often penalized by the government for late payment of taxes, late submission of tax documents and at times, non-submission of tax forms. Also, the business can also be penalized for erroneous computations of tax dues. The business owner has his/her hands full with running the business that handling the accounting requirements can be turned over to another person.

A business owner can hire an in-house accountant or he/she can outsource the small business accounting work to a CPA firm like Desert Rose Tax & Accounting. An outsourced accountant can sometimes be more beneficial than hiring an employee because it is less expensive to outsource than to hire. Also, the outsourced accountant doesn’t need a designated space while an in-house needs his/her own space in the office.

In choosing an accountant to handle small business accounting for the company, some tips can be useful. Before opening a business, the business owner must have a ready accountant. Since a CPA requires a license before he/she can practice the profession, one has to make sure that he/she has a license. The accountant must have experience in the kind of industry the business is in.

Also in a small business accounting setup, before hiring an outside CPA make sure that one knows how much the accountant charges. Fees charged by CPA firms can vary widely. It is good practice to compare the accountant fees with industry standards. The accountant must be able to fill the needs of the company. Before hiring an accountant, one has to interview at least 3 or more prospective accountants so one can compare which among the three will best serve the company’s purpose.

In handling the accounting needs of the company, the business owner must ask the prospective accountant about other possible services he/she can offer to the company like sales tax and payroll tax reporting services. Some Certified Public Accountants offer business advice to help the enterprise grow.

Also, the accountant best fitted to handle the small business accounting is the CPA whose accounting firm is also small. Accountants who own small firms understand how small businesses are run. They also have the time and resources to share with the business owner. It’s one thing to have a fancy degree in business and another to have practical experience running a small business. In the event that the business owner sells the business, the accountant must be good enough to discuss with the owner how to go about with the sale so that tax liabilities are minimized.

Prior to signing up an accountant for the small business accounting, the business owner must ask the accountant for client references so that the owner can investigate. One must also make sure that the accountant establishes a business relationship with the owner, meaning the accountant has time to visit the company every now and then rather than just seeing him/her only when it’s tax filing season.

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Easy Tips and Tricks to Get Small Business Accounting Right

Making mistakes in your accounting can have serious implications for any business, such as significant fines for suspected tax evasion. For a large corporation, this can damage both the finances and the reputation of the company. For a small business however, it can have a huge impact and possibly even cause the company to go under, if there is not enough money to pay the fines.

Good accounting is therefore essential right from the very start. Many small business owners believe that they do not need to do any kind of accounting, or do only basic bookkeeping, but this is wrong. It is critical for every business, no matter its size, to start accounting from the moment it starts trading. Simply keeping hold of customer receipts and invoices is not enough, the business must set up a simple but thorough system to record all transactions made and to produce reports as and when needed. Getting off to a good start with accounting will set your business up for long-term success.

When you launch your small business, open a separate bank account for it. It is not uncommon for sole traders for example to simply use their personal checking account for their business but this then makes it impossible, or at least extremely difficult and time-consuming, to carry out a reconciliation, which is a check to ensure that the figure your bookkeeping tells you should be in the account is indeed the amount in the account.

Reconciling your books and accounts regularly, such as weekly or monthly, is a great way to avoid accounting errors. This way if the figures do not add up you will have more chance of being able to correct the mistake. Imagine trying to find a small receipt from ten months ago, for example. That is the kind of problem that can occur and be impossible to correct if you only check your books against your bank right before you have to submit your annual tax return.

Good bookkeeping and accounting such as producing monthly cash flow statements not only benefits you when it comes to submitting your tax return, which is much easier when you have all of the necessary figures and documentation already in place, but it also benefits you because you can see if you are overspending on particular items or services, and predict whether you will make a profit or loss. You can also start to see trends, such as seasonal increases and decreases in profit, which may otherwise have gone unnoticed.

Another great tip is to find out if you are entitled to any tax credits as a small business owner. Too many small companies do not realise that they may be able to claim certain expenses such as travel, home office costs and even childcare as untaxed. Be sure to do your research to make sure you are not overpaying.

For small businesses who want to keep their accounts in good order but who perhaps do not have the expertise needed to do their own accounting, there are a couple of options to choose from. It is possible to buy accounting software online that will produce reports for you. These are relatively cheap and easy to use, however the reports are only as good as the figures you enter into them so if you make an error, it is likely to go unnoticed.

Hiring a small business accountant, however, ensures that your accounts will be prepared by a knowledgeable and experienced person who pays meticulous attention to detail. You can opt for a local accountant or, to keep costs down, you can find an accountant online who generally charge lower fees.

It would be highly recommended to any small business to hire a small business accountant as a consultant right from the start of the process, which gives them time to familiarise themselves with your business before the busy period at the end of the tax year. However, you want to ensure that you are working with an accountant who understands your position and can advise on how best to handle your finances, so wherever possible opt for someone who specialises in small business accounting and, preferably, who has already worked with small businesses that are in the same industry as you are. If you live in a large city, accountants tend to be readily available with the necessary background, but if none of your local accountants can offer what you need, then it would be best to find one online, rather than opt for someone who only knows how large corporations work.

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IAFEI: Nominations open for Top African CFO of the Year 2017 award

The economy, BRICS, cyber security, tax and financial management will all come under the spotlight at the 46th World CFO Congress to be convened in Cape Town from 9-11 November 2016.
“To further invest in the financial professionals of Africa, we are privileged to announce that the International Association of Financial Executives Institutes (IAFEI) is making an investment of R500,000 towards Africa’s next top 100 CFOs, by giving the best 100 nominated African finance professionals the opportunity to attend the 46th World CFO Congress as guests of IAFEI,” says IAFEI chairman, Fausto Cosi.

Nicolaas van Wyk
Nicolaas van Wyk

“Africa, as an emerging market, is developing significantly on so many fronts, and the role of the financial professional is vital in guiding growth and development in the right direction. It is important for us to not only focus on existing CFOs, but to expose and mentor upcoming finance professionals in Africa as best as possible. By learning from the experienced leaders in the industry, these younger CFOs will have a more successful career in financial management.”

Mentorship programme

From the 100 next top CFOs nominated by a fellow CFO or finance professional, the best candidate will be awarded the Next Top African CFO of the Year 2017 Award at the gala dinner, taking place on 9 November 2016. The person awarded this prestigious title will receive the opportunity of a lifetime to travel to Paris, France from 5 to 9 December 2016 for a mentorship programme, learning from some of Europe’s top CFOs, followed by media exposure and opportunities to engage with local stakeholders back in South Africa for the following 12 months.

“Gaining international exposure is extremely valuable in our industry, and this investment made by IAFEI indicates the importance of developing up and coming CFOs. The person awarded this prize will be able to interact with experts such as Jean-Luc Michel (CAO, Nissan Europe), Armand Angeli (VP, Lumiu Ltd), Frederic Doche (CEO, Decision Performance Conseil), Dominique Chesneau (Managing Partner, Tresoriskconseil) and Jerome Bogaert (Founder, Harmony). This is an opportunity of a lifetime,” says Nicolaas van Wyk, SA Institute for Business Accountants’ (SAIBA) CEO and IAFEI board member.

Candidates that may be nominated must work within the finance department and be earmarked for success, showing promise as an achiever and have an outstanding work ethic. They must be a member of a professional body and have the relevant degree and experience indicative of an outstanding career. He or she must be a worthy ambassador for both SAIBA and IAFEI.

To submit a nomination, a finance professional must identify someone he/she thinks meet the above criteria and would benefit from attending the congress. Nominations can be submitted on the website before or on 25 October 2016. The best 100 candidates will be notified by 30 October 2016.

Properly trained financial managers are key to municipal stability

With the current focus on local government and municipalities, the CFO community both locally and abroad is seeking the immediate implementation of the recommendations by the auditor-general to improve public sector and municipal financial management.
Properly trained financial managers are key to municipal stability
© Andriy Popov
Municipalities in financial trouble

According to the Auditor-General SA (AGSA) report released on 1 June 2016, irregular expenditure has more than doubled since 2010-11 to R14,75 bn. Fruitless and wasteful expenditure in 2014-15 was more than R1bn higher than in 2010-11 at R1,34bn. Unauthorised expenditure also increased threefold from 2010-11 to R15,32bn. In 2014-15, the AGSA rated the financial health of 92% of the municipalities as either concerning or requiring intervention.

Appropriately qualified and protected public sector CFOs and financial managers and officers are a key ingredient in turning the fortunes of South African municipalities around.

“With 60% of the country’s key municipalities in financial trouble and South Africa’s credit rating being reviewed, the CFO community believes that an increased focus on financial sustainability within municipalities is a critical priority for all stakeholders,” says Nicolaas van Wyk, SA Institute for Business Accountants (SAIBA) CEO.

Recommendations need to be fast tracked

The auditor-general, Kimi Makwetu has noted the encouraging improvement in the audit results of municipalities as a result of political, municipal and provincial leadership delivering on commitments to fill key positions with competent people, stabilising the administration and adopting minimum competency requirements.

The public sector and municipal finance leaders need to fast track the recommendations made by the AGSA and provide additional independence and protection for public sector CFOs and municipal finance managers. The only way to ensure the financial sustainability of municipalities and achieve greater governance and efficiency, is to strengthen the role of the public sector CFO and municipal finance officers.

“Public sector CFOs and municipal finance managers are subjected to diverse demands from political party leaders, traditional leaders and the electorate. Their role needs to be strengthened through legislation to protect them from unwarranted influence and to allow them freedom of access and movement to make independent decisions,” comments Van Wyk.

Public sector leaders need to:

Respond urgently to the AGSA’s consistent messages about addressing risks and improving internal controls.

Fill vacancies and address instability in the key positions of municipal managers and chief financial officers as this affects the financial and performance management of municipalities and can have a direct effect on audit outcomes.

Take appropriate action against any person responsible for the high levels of unauthorised, irregular as well as fruitless and wasteful expenditure.

QuickBooks celebrates Mompreneurs

QuickBooks is looking to recognise and celebrate South Africa’s Mompreneurs with the QuickBooks/Entrepreneur magazine and Saturday Star Mompreneur Competition
Being the number one choice of financial software for small to medium business worldwide, EasyBiz QuickBooks recognises the challenges that these growing businesses face in today’s challenging business landscape. Within the South African context, QuickBooks has also identified that a lot of these growing entrepreneurial concerns have been started by ‘Mompreneurs’ – talented and skilled women that have families and other responsibilities and have opted out of the corporate world in order to seek out that elusive state of ‘life balance’ by starting their own businesses in order to be more in control of their own destinies.

This year EasyBiz QuickBooks and Entrepreneur, in recognition of this growing powerhouse of working Moms, has decided to launch the QuickBooks Mompreneur Competition in association with Entrepreneur magazine and the Saturday Star, to celebrate and pay tribute to these incredible women who have taken the brave step of leaving the corporate world to start their own business.

How does it work?

In year one, there will be no restrictions on entry in terms of size of business or turn-over. The rules are simple, you must have started your own business and you must be a Mom. In years to come, categories will be added to the competition, but for this year all businesses will be judged on their own merit in terms of the idea, the execution and its relative success.

For the inaugural Mompreneur Competition in 2016, entries will be driven through online and social media platforms – predominantly through the QuickBooks and Entrepreneur websites and via the Saturday Star. Here, Moms can either enter themselves, or be entered via a nomination. The entry form is simple, and needs to be accompanied by a photograph of the entrant and a short video explaining how and why they started their own business and what that business is. The campaign will run from May to July with the winner being judged by a panel of successful entrepreneurs and business journalists, being announced in August – Women’s Month.

Over and above the accolade of receiving the title of Mompreneur of the Year, the winner will receive the following prize:

QuickBooks Accountant valued at R7,000
eZ Bank Download software
One laptop computer valued at R10,000
A full-page feature in Entrepreneur magazine on the winner and the runner-up (Valued at R49,300)
An UBUNTU Strategic Analysis of their business as well as a Business Builder Programme with 12 Modules to implement changes – R50,000
UBUNTU two-hour consultation on how to grow their business – valued at R15,000
Southern African Institute of Business Accountants – SAIBA – A week’s training in set-up management and bookkeeping
One-year subscription to The Star/Saturday Star
Coverage in the Saturday Star for their business
Full membership at the National Small Business Chamber (NSBC) for one year, sponsored by QuickBooks

Started Your Business, Now Hire Business Accountants To Make It Work

Once you will open a business firm then the first task will be to plan the financial aspect of your business because without proper financial management, a business will cripple down. Moreover, when you will run the firm, then you will have to indulge yourself in various core activities, like managing the customer interaction, idea implementation, product development, marketing etc. Hence, it will become nearly impossible for you to give attention to these issues while also managing the financial side of the business. Therefore, hiring a business accountant will not only ensure a long-term success for your business, but it will also reduce the amount of responsibilities on your head.

These accountants will take care of your company’s audits, cash flows and various other financial services. Besides, if your business will not keep an accounting record and do not manage those records efficiently then it will face disastrous circumstances.

Today every business firm knows the true importance of managing their accounts and taking care of the financial side of any business. They have started hiring the business accountants, because it is a way they can ensure a long-term success for their business.

Once you will hire the accountants you will be able relive yourself from the added responsibility of managing the accounts, managing the updating of the financial records and the bookkeeping tasks. These business accountants will give you the best of the services based on your accounting, bookkeeping and other needs, they will make sure to provide the solution to the every finance related issue that you company might face. This will make sure that you can put all your concentration and energy in the basic parts of a business like client interaction, idea implementation, product development etc. Therefore, you can keep working on growing your business in various ways while they will handle the finances in the background, thus making sure your business works efficiently.

One more reason why you should hire these accountants is that they are full of practical knowledge and they have all the necessary skills to ensure that you can reduce the operating cost of your business. You can outsource you financial needs to an accounting firm, instead of hiring a team of professionals to take care of your business’ finances. This will ensure that you will not have to spend a lot of money in hiring various people and you will end up saving costs in salaries, employee benefits, insurances etc. Therefore, by getting these accountants, you will eventually end up saving the money.

Your overall business success will depend on these accountants, as their services ensure your business develops in an all-round way. They will not only provide you with the best of the solutions but will also give you the best of the financial management services. These accountants come with high qualifications and are dedicated in what they are doing. This ensures them to provide you with the most accurate reports and up-to-date financial records. These records will be error-free and readily available.

These are just some of the benefits you will get by hiring business accountants. Therefore, provide your business with their services, because that will turn out to be the best decision you will ever take.

Benefits Of Business Accounting

Who is Nathan Morris?

Nathan Morris is a senior tax agent and advisor who founded the firm Morris Accounting in East Brisbane. He has over 15 years experience in the accounting field. He helps clients with business management, sales and acquisition as well. He aids the property, building and construction industry. Nathan Morris covers small to medium enterprises, including professionals, manufacturing, wholesale, and retail, hospitality and primary production.

Nathan Morris advises clients with tax minimization strategies and business expansion planning for small, medium and large industries. Some of his specialized skills are in asset protection, business appraisal and evaluation, structural business for startup business ventures, estate planning, finance planning, business planning, cash flow projections, etc.

Significance of a Business Accountant

Every business owner wants to minimize tax legally as well as maximize the revenue as well. The business accountant Brisbane will assist you in structuring a budget that will help you to keep track of your progress. He will help you to establish a business plan that will monitor your cash flow so that you know exactly how your funds are utilized.

The business accountant Brisbane will also have a tax plan in place before the current financial year ends which aids you in minimizing your tax liability as well. The business accountant is either a member of the Institute of Chartered Accountants of Australia or other organizations. He follows a certain set of rules and regulations like the �Generally Accepted Accounting Principles.� In order to find a business accountant Brisbane, you can search in various accounting firms who employ business accountants.

A firm such as KPMG will serve you well in terms of tax, audit, and advisory services. Business accountants offer a full range of financial services along with preparing tax returns as well. Preparing balance sheets is a very complicated skill which can help you to avoid costly mistakes.

Account Services for Small Businesses

Accountants also perform bookkeeping services as well. Managing the day-to-day transactions allows you to keep track of the money coming in and out of the business. There are different methods of bookkeeping which your accountant can advise you on. Tax regulations keep changing all the time as each budget brings up a new round of updates.

Accountants are up-to-date with these changes and they will advise you to effectively manage your business also. Submission of annual returns is legally necessary and you might have to face a fine if you are late in submitting them. The accountant can help you to get money in the shortest time without raising any audit flags. Monthly bank statements will help you when you submit your tax return and helps you to check your monthly expenses as well.

It also helps you to note whether you are gaining profits or losses. You can also look for trends such as seasonal increases and decreases in profit, which otherwise would have been unnoticed. Accounting services for small business act as the backbone of the small enterprise. Without proper maintenance of accounts, you will hardly have an idea whether you are making a profit or a loss.

Get Excellence In Each Financial Task With Accountant New York

As accounting is considered as measurement and communication of financial and economic data, it involves all major tasks that represent flow of cash inside or outside the organization. Accounting is as old as money itself; whenever money flows in term of services of currency a transaction takes place and that is why accounting is needed to record the transaction in a systematic format. The process of accounting is still in an evolutionary process and it will last till money is there. As accounting refers to the discipline of recording and classifying the monitory events of an organization, an efficient individual is needed to analyze and categorize the data according to requirement. Person who takes care of accounting task is accountant, a qualified and proficient professional who contributes chiefly in growth of any organization. New York is the ultimate destination to find variety of talents and that is accountant New York are also the preferred choice of every business interested in outsourcing it’s accounting task. Are you worried as the tax session is approaching? If yes then stop worrying and have a look accountant New York, you will definitely find solution for your accounting hassles. Accounting is the language efficiently employed to understand cash flow; an efficient accountant not only understand the complex terminology of this language but also plays with its term to make your balance sheet more delighting. It is now well recognized that accountant New York is the master of accounting terminology who can make everyone’s tax session hassle free. During the tax session, a well-organized financial recording system can prove to be the biggest help as it makes every required information easily available. An accountant New York that you hire keeps the massed up data in a systematic books of ledger and journal. Journal and ledger books are the basic information providers to prepare annual financial statement for assessing tax. The primary role of an accountant is to record and process the data in accounting system. He is liable to handle operational and non-operational accounting data; operational data constitutes great deal of cash flow whereas not operational records are stable and updated annually. Organizations that have poorly managed operational records repent for it as they tally records for tax assessment or annual report preparation. Similarly, other muddled financial records can portray a wrong image of that organization. If you are a business owner and want to entrust your accounting tasks to someone reliable and efficient then accountant New York is your ultimate destination. Accountant New York is committed to maintain accuracy and privacy of your confidential data. With him, you can be rest assured that your accounts are in safe and professional hands that will take care of every financial activity carefully. Now you can sit at ease even during the tax session as accountant New York is there to accomplish every task in minutes. For finding an efficient accountant New York, you can take help of internet as there you can easily search for an accounting service provider. Published at:

The Positive Aspects Of A Good Accountant

Employing an accountant appears to be really costly specifically if your business enterprise is not that large. A great deal of men and women are stating that accountants are only there to fill out monetary reviews and that’s it. In fact, an accountant is much more than what they really think. Accountants can save you from scrambled figures and lots of paper works. They may also enable you to save time and money and decrease the anxiety from taxes. Right here are a few of the rewards and advantages of having an accountant for the business.

First, accountants can fill up forms correctly and they can pass it promptly. When you have a uncomplicated business enterprise design, then almost certainly there’s no need for you to hire an accountant. Nevertheless, tax return along with other documentation can really provide you with a headache particularly in case you don’t know the exact details that must be put there. In the event you completed a document incorrectly, it is going to surely be sent back for you and you will have to do it again. Employing an accountant will avoid this type of situation and you’ll not have any difficulties on the financial paperwork of your small business.
2nd, it could significantly minimize your tax bill. In fact, employing an accountant won’t practically reduce your tax bill. The thing is they can provide you with techniques on how you’ll be able to reduce your tax bill. A superb accountant will make sure that you are aware of the legal techniques on how you may reduce tax bill. They can also be sure that you could take full benefit from the tax laws and ensure that your enterprise will probably be paying correct taxes and stay away from any legal challenges with regard to paying taxes.

3rd, they can help you preserve your useful time. As the operator from the small business, your primary issue have to often be on how you can boost your business. It only indicates that you just don’t have to do some financial paperwork on your own. Employing an accountant will let you do the points that you need to do and allow the counting and computing job towards the accountant.

Tax Accountant Dandenong

When to Use a Certified Public Accountant in Dandenong

A Certified Public Accountant, or CPA, can help you be sure that your small business accounting or individual taxes are correct and complete. Some businesses are sufficiently small, akin to house based businesses, that a Certified Public Accountant will not be needed for many accounting tasks. However, there are occasions when a enterprise or particular person should use a Licensed Public Accountant.

When you have a small enterprise, and you’ve got discovered that an error in your bookkeeping exists, it will probably usually be troublesome to locate the place and when the error was made to appropriate the mistake. A Certified Public Accountant has particular training and schooling to search out these errors by means of an exterior audit process. It is important that these errors be corrected, as a result of the books you utilize in what you are promoting are used to find out taxes and business decisions.

These data also enable investors to see how properly your small business is doing as a way to get more backing to assist your online business grow. A Licensed Public Accountant can find and proper any errors in your bookkeeping, and assist you manage your bookkeeping so that you simply or the Certified Public Accountant can easily generate monetary statements and reports. These financial statements and studies prepared by a Certified Public Accountant are the paperwork that most banks and investors need to see before making any financing decisions.

In case you are beginning up a home primarily based or small enterprise, it’s best to seek the guidance of a Certified Public Accountant. The Licensed Public Accountant can assist you arrange a double entry technique of accounting with a journal and ledger, in addition to a chart of accounts that can assist you use these tools successfully in your business. The Certified Public Accountant may also advise you as to what taxes you will be liable for paying all through the year. Quarterly taxes are sometimes required of businesses and self-employed individuals. To keep away from penalties, late charges, and a large tax bill at the end of the 12 months, it is best to contact a Licensed Public Accountant for this information.

Any particular person that is self-employed ought to seek out the companies of a Certified Public Accountant when it’s time for tax return preparation. Tax legal guidelines change yearly, and a Licensed Public Accountant may help you just remember to are receiving all of the deductions you may have obtainable as a self-employed individual.

Any individual with youngsters, who is separated or newly divorced, or who could wish to itemize deductions primarily based on mortgages, medical expenses, and charitable contributions must also hunt down a Licensed Public Accountant for assistance in income tax preparation. This is because the tax laws are very advanced, and alter often. In case you make a mistake and declare a deduction that you would not legally claim, the IRS may audit your return and cause you to pay back the refund quantity, with penalties. Moreover, if you happen to make a mistake and don’t claim a deduction that you could legally claim, the IRS won’t try to right the error, inflicting you to receive a smaller refund. Either way, you lose money. The best way to avoid these and other errors is to have a Certified Public Accountant prepare your revenue tax return.