How to Set up Accounting BookKeeping Services for Small Business

1. How to Set up Accounting BookKeeping Services for Small Business Accounting & Bookkeeping Services for Small Business: Maintaining Books of Accounts Is No More a Headache Now! It is said that finance is the lifeblood of a business. In order to have a systematic record of the financial events, maintaining accounting records for a business is an indispensable task. However, the same is a cumbersome job for small businesses. Establishing accounting & bookkeeping services for small businesses is an uphill task. Setting up an accounting department, recruiting, and training the accounting personnel and retaining them becomes time-consuming because these ventures primarily focus on the growth of their businesses as their top priority.

2. Do Small Businesses Need an Accountant? Every business requires maintaining its accounting records. This could be either for some statutory reason or facilitating its management in insightful decision- making. Small business houses operate on a low scale and generally lack adequate financial resources. Hence it is important that it utilizes its liquidity optimally. Generally, accounting is not the forte of a small business concern and it might face difficulties finding a skilled and responsible accountant. Statutory compliance, a must-do, becomes difficult to comply with owning to a lack of expertise. Apart from these, making sound business decisions is highly dependent upon the availability of timely and reliable accounting data. So, it is highly recommended that small businesses hire accountants to take care of their bookkeeping jobs for efficient and streamlined operations to go on! What do the Bookkeeping Services Offer? Outsourced accounting and bookkeeping services provide a plethora of solutions for small businesses. They pass accounting entries on a monthly basis and take care of the bank reconciliation part as well. They are solely responsible for maintaining accounting records in a legible form. This helps their clients to provide the required information and furnish records to their auditors. The expert organizations providing accounting and bookkeeping services for small businesses in India also help their clients to effectively attend auditors' queries. They provide their clients with periodical MIS Reports which facilitate the latter in their strategic decision-making process. An accounting services firm also looks after the statutory compliances of the client, involving Payroll and Taxation compliance. Maintaining Internal Financial Control also falls under the scope of work of an outsourced accounting and bookkeeping service provider. How Do you Maintain Bookkeeping for a Small Business? An accounting service provider maintains the books of accounts on the accounting system as preferred by the clients. They carry out periodic reviews of accounting data of their clients and monthly closure of the books. Such experts are also skilled in meeting statutory dues and filing returns on time, relieving entrepreneurs off such pivotal tasks. They not only prepare books of accounts but also provide all necessary information and explanation to the auditors.

3. During an internal audit, the accounting firms conduct periodic meetings with the management of small businesses and discuss irregularities observed in the process. What if a small business maintains its own accounting records? Don’t they need the services of accounting experts at all? Well, in this case, a senior team member pays frequent visits to the client's premises and reviews the effectiveness, existence, and continuity of the Internal Financial Control system. If any discrepancies are observed, the same is made good and the in-house team members are provided with adequate training. It could be a possibility that the daily bookkeeping is handled by the client while the external accounting firm ensures that the statutory compliance for the auditors is in place. It is not necessary to carry out or review physically as such services can be rendered virtually. There is always an availability of accounting and bookkeeping services for small business in Pune, Mumbai, Kolkata, Bangalore, New Delhi and many other cities in India. What are the modern ways of accounting and bookkeeping in small business? As development is occurring rapidly in all fields and sectors, business owners are trying to keep up with the modern trends of accounting and bookkeeping. If you haven’t already stepped into the modern world of financial software systems and online accounting then it is the best time to get in touch with a professional and experienced team for advice. There are certain ways and techniques which will help you adapt to the modern ways of bookkeeping and accounting services for small businesses and here are a few listed below:- 1. To update and adapt to the modern ways of bookkeeping and accounting services for small businesses the very first step is to eliminate the manual and paperwork and switch to digital methods. It helps in getting rid of the clutter and helps you save a lot of time in the filing. It will also help you eliminate the time that usually goes behind shredding the documents after they are finished filing. Going digital will make sure of the fact that you have a compact online cloud- based accounting program and this will also help you manage the transactions that are made through the account. 2. One of the major problems that small business owners have to face troubles every time they have to manage their personal and professional finances. Even if the business you are running is based from your home it is crucial to keep a proper record maintained of the money spent for professional purposes and those spent for personal purposes. This is when digital or modern bookkeeping services are helpful because it allows you to comingle both these accounts but the hassle and complications will not arise. 3. If your finance tracking system is a poor one then it becomes particularly difficult when the deadline approaches for tax payment because the system will fail to keep aside funds for the payment and this will in turn create bigger

4. problems and unnecessary difficulty. Since there isn’t a way for you to avoid tax payment it is better you switch to digital modes of bookkeeping because the system is automated and the payments are generated instantly without much work to do manually. This helps you get rid of last-minute tax payments and makes the job a lot easier. The techniques for accounting and bookkeeping services for small businesses can be tricky but if carried out efficiently can prove to be extremely beneficial for the company. What is the best accounting method for a small business? Small business owners do not pay much heed to the methods of accounting or bookkeeping. The accountant of the business might try to explain the owner of the ways and methods of accounting but since the owner is unaware of the method he might not know of important information regarding the finances of his business. There are two best accounting methods that are usually practiced and followed:- cash basis accounting and accrual basis accounting. If you are aware of these methods then it will help you track your client billings and you also have the control of keeping a check on whether anybody is trying to remove cash from the funds of the company. In cash basis accounting, the income is recorded as and when received by the company and the purchases or expenses are paid thereafter. In the case of accrual basis accounting, the income will be recorded when it is earned and the expenses will be incurred. Based on your company’s income and cash flow any one of these methods can be practiced. For example, if your company earns revenue of less than$25 million in sales in a year and is not going to sell its merchandise directly to the consumers then the cash basis accounting method will be the best choice for your company. Often cash basis accounting is the preferred choice amongst small business owners because it is a simplified process and easy to use. Accounting standards have streamlined the usage of accrual basis accounting for mainly financial reporting and it helps you in getting a clearer picture of the overall finances of your company. The main advantage of this accounting method is that it helps you in focusing on the bigger picture. What factors do we need to consider to set up small business accounting and bookkeeping? When it comes to accounting bookkeeping services for small businesses, there are several factors that you have to keep in mind every step of the way. On one hand, the accounting and bookkeeping services advantages are plenty in number but utilizing them in the right manner is essential. Solid business record keeping lies in the fact that how effectively have you learned to track your expenses. This will help you navigate the growth of your

5. business, as well as help, create financial statements. You need to set up a system from the very beginning that will help organize receipts and important records. The more you concentrate and focus on the numbers that are in front of you the more it will help you in managing them well. When you are going through your weekly or monthly cash statements make sure that you have an overall cash flow statement. This overall cash flow system will help you in understanding the cash movement that occurs within the company as well as outside of the company. The cash flow statement will mainly monitor income direction. The most common mistake in small business bookkeeping solutions that owners commit is mixing up receipts and invoices which in turn messes up with their overall accounting and bookkeeping. Knowing the difference between these two is extremely crucial:- an invoice is basically a billing statement that is sent to the customers after they have received your offered services. It is a detailed bill account that encompasses all the services provided to the customer and the invoice basically acts as a reminder to the customers that they owe money to your company. A receipt on the other hand is proof of the fact that some sort of a monetary transaction has occurred and it is handed over to the customer once the transaction is complete. Mixing up these two bills can cause huge problems in accounting and bookkeeping. Way Ahead! In today’s world, everything is dynamic. Business growth and success depend on its scalability and flexibility. Many small businesses undergo enormous struggles to keep up with the pace of industrial growth. Accounting function at times becomes a burden for them. They find it difficult to carry out their key functions properly by getting diverted towards smoothening their accounting process. Therefore, if an organization provides accounting and bookkeeping services for small businesses at affordable pay, it will definitely be a blessing for the latter. Paysquare offers such services in line with its vision of being the most trusted and recognized partner. So go ahead and partner with Paysquare to be benefitted today!