• New Wave Accountants

Simple Accounting Facts All Small Businesses Need to Know

When it comes to small business owners and their accounts, having the right financial management skills is absolutely essential. By learning bookkeeping and accounting basics, you can ensure that your books are in order and that your accounts are accurate. With proper accounting, you can make your small business run more smoothly. Another solution to managing your small business finances is to hire a professional accountant.


Simple Accounting Facts All Small Businesses Need to Know


1 - Clean Bookkeeping Is a Must


Bookkeeping defined as the recording of financial transactions in a systematic manner. It is a process of recording and processing day-to-day transactions in an organization. This includes recording bank transactions, receiving payments, issuing receipts and invoices, processing cheques, issuing payroll and many other transactions.


Effective bookkeeping should integrate the different transactions into an organized whole. It should also ensure that there is an easy extraction of the data from the system.


2 - Hiring an Accountant


While many small business owners prefer to handle their own bookkeeping and accounting, others find it easier and more cost-effective to hire a professional. This is particularly true for small businesses that:


1. Operate on a limited budget

2. Operate in highly specialized industries

3. Operate with high cash flow

4. Operate with complex accounting requirements

5. Operate in a number of different industries, both locally and overseas


3 - What Accountants Can Do


Accountants can offer advice on your business plan


An accountant may be able to suggest improvements or additions to the plan, ensuring that you get the most out of your business.


Identify and resolve accounting problems


The accountant can act as a trusted advisor to your business, allowing you to correct problems before they become major issues.


Ensure compliance with legislation


Accountants with expertise in accounting systems and financial reporting can help identify and comply with relevant legislation.


4 - What to Look for in Accounting Software


Ease of use and functionality


The accounting software should be easy to use and should include functionality that will help make your accounting easier.


Reliability


The accounting software should be reliable, with a good support system in case of any problems. Many software programs are produced every year, so it is also a good idea to find out how many years they have been around and how they compare to similar programs.


Why Small Businesses Will Benefit from an Accountant


The accountant and the client should have similar goals, objectives and vision for the business. The accountant should be knowledgeable and competent in the field, have knowledge and experience in the industry and understand the client’s business. They should also be able to offer a broad range of services, including payroll tax services and assistance with bookkeeping, record keeping, and financial statements.


Conclusion


The right accounting solutions will ensure that your business is operating efficiently and effectively. No matter how detailed and involved your bookkeeping is, it’s always a good idea to get a professional opinion every so often. In addition to routine bookkeeping and accounting services, a professional accountant can also offer bookkeeping software solutions and accounting support services. Hiring a professional accountant can help you to save time, get better results and make your small business run more smoothly.


Unlike many small business accountants on the Gold Coast, New Wave Accounting provides end-to-end accounting and bookkeeping services that help scale and grow businesses. We understand small businesses and have worked with over 600+ businesses over several industries. This has allowed our Gold Coast Accountants to understand each industry and create tailored solutions for our clients. Give us a call today!



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