Many businesses perform their own small business accounting, making use of accounting software that is readily available on the market. The software that is manufactured today is highly sophisticated, and it can even conduct payroll tasks.
The software that is available today helps with small business accounting by tracking not only sales, but accounts receivable, accounts payable and other important information. If your business stocks inventory, most software systems will track your inventory as well.
Should You Handle Your Own Accounting?
Keeping your small business accounting in-house can save you a lot of money in fees over the course of time. While it may require that a bookkeeper (or other designated person) enter the information on a regular basis, the salary paid to this person could be much less than outsourcing the work to an accountant.
Once you have all the required software set up, you must keep it up to date. A small company (with only a couple of people working) may only have to update on a weekly basis, while a larger company will likely keep it updated daily.
When you are making important decisions for the company, sometimes you need to have a quick snapshot of the company's financial standing in a split second. Keeping the small business accounting in-house will afford you the opportunity to have that information right away, as opposed to having to contact the accountant, and then waiting for him to provide you with the necessary reports.
Should You Hire an Accountant?
Despite the fact you are doing your small business accounting yourself, you will still want to keep an accountant on retainer. He or she can then go over the books and prepare your tax returns for the business. Most software titles will allow you to provide an accountant copies of your information, which your accountant can open with the services' copy of the software. They can review records, complete tax returns, and notify you of any anomalies that may occur.
Software titles, such as Quickbooks®, are literally an all-in-one solution. However, while these software programs are certainly sophisticated enough to do the work of a fully qualified accountant, the software will not be able to give you the sound advice readily available to you from your accountant.
So, while the software can certainly save you money with your small business accounting (and give you the reports you need in a split second), it should never be used to fully replace a qualified accountant.