As an accounting major in college, I quickly learned all of the complicated parts of the accounting cycle. I discovered how to input the details of business transactions into a computerized accounting system. At the end of an accounting cycle, such as a month, I became experienced with calculating the revenue for the period. If you’re starting a new business, determining an accurate amount of revenue for each accounting cycle is crucial. You must know how much profit you’re making each accounting period in order to be successful in the long-term. On this blog, you will discover how an experienced accountant can help you keep track of your revenue.
Are you a new small business owner who has poor financial organizational skills? There are many things that are involved with keeping business finances in order. Neglecting to keep proper records can land you in serious trouble with the government or even in a lawsuit. It is wise for you to hire a certified public accountant to assist with keeping your business finances in order. This article will give you more insight about what an accountant can do for your business.
Keep Payroll Records in Order
An important service that an accountant can provide to your business is keeping track of payroll. You must know what you are paying your employees at all times in order to be prepared for disputes. For instance, an employee can claim that you underpaid him or her and try to sue you. If you don't have accurate payroll records, you can end up losing the lawsuit and have to pay an unfair amount of money. Neglecting to have accurate payroll records can lead to problems with the Internal Revenue Service (IRS) as well.
Analyze the Budget for Running Your Business
If you don't have an organized budget for running your business, you can quickly fall into debt. Balance is important in expenses like what you are paying employees, how much is being spent on supplies, and what you are spending on utilities. An accountant can analyze how much money you are putting into the business and suggest areas in which you should cut down on expenses.
Organize Incoming Business Profit Records
When it comes to paying business taxes, you can overpay the government if you have inaccurate business profit records. You should not file records that say you have received money for a product or service that was actually provided to a client on credit. The record should show that money was not received, or that you have only received a partial payment for the total amount owed until the account is paid in full. You don't want to end up overpaying the government and having to amend your taxes later on.
Guide You Through the Auditing Process
If you happen to get audited during tax season, you can get frustrated trying to prove that you are not at fault. An accountant can hand the IRS all of the necessary financial records to help you get through the auditing process in a smoother manner. You can count on the records being accurate, and any documents that are in question can be explained to the IRS by your accountant.
If you have more questions about these and other services a CPA can provide, talk to a company like Carmines Robbins & Company PLC.
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