As an emerging entrepreneur, you may be wondering if you need an accountant for a small business. Our answer right off the bat is an emphatic “yes”. But the concept of accounting and bookkeeping are often confused and used interchangeably.
Whereas bookkeeping is about keeping track of financial transactions, accounting is the process of analysing financial data in order to help small business owners make more informed decisions. In this article, we explore what kind of accounting you need for your small business.
What accounting is needed for a small business?
A bookkeeper for your small businesses is a necessity. Why? Because these professionals can help you process, measure and communicate your business’ finances and financial information. Such information is often complex. It goes beyond managing taxes. It’s also about management, payroll, acquisitions and inventory.
There are numerous benefits of this. They include but are not limited to the following business functions:
- Keeping a complete record of all the income and expenses
- Accurately extracting financial information from business transactions
- Helping you track and manage your money effectively
- Keeping you cognizant about your business’ past and present performance
- Generating invoices
- Completing payroll
- And so much more
But the role of such a professional goes beyond these daily tasks. A qualified and experienced accountant can also help you write your business plan before you get started, help you obtain the right licences and permits for your business and set up employment accounts.
They can also help you establish your accounting software, handle labour costs and compliance, enable you to meet creditor and licensing agency requirements. But that’s not all. They’re also able to help you open a business bank account, track expenses, calculate your gross margin, apply for small business funding and so much more.
So, how is this all done? The right accountant or bookkeeper will help you with analysing and inputting your financial transactions in the right accounting books. Such books include making journal entries through the double-entry system (which comprises both debit and credit entries).
These entries are then recorded and adjusted in ledgers, an unadjusted or adjusted trial balance, financial statements, closing entries and more.
Your trusted tax accountants in London
When you need a helping hand with your finance and accounting books, you know who you can turn to. At Tax Navigator, we are industry leaders for outsourced bookkeeping services in London. We are serious about your business’ financial well-being and we know just how to help you optimise your business’ performance.
We do this by carefully studying your business’ books and evaluating where improvements can be made through adjustments to your current systems and processes. Ready to get in touch with us? It’s simple! Just give us a call or submit your query through our online form. Our team is ready to help you at every step of the way.