The most important aspect of accounting is accurate and reliable money handling. While you must maintain controls for your physical cash, credit cards and bank accounts, the next level of control is your financial information. Proper accounting promotes positive communication between owners (in partnerships, LLCs and Corporations) and gives all owners (sole proprietors too) the ability to accurately manage employees, payroll, income and expenses.
The basic financial forms required for any governmental reporting is your Profit and Loss (P&L) statement and a Balance (Bal) sheet. How much time would it take you to get monthly, quarterly and yearly P&L and Bal statements for the last three years?
If your answer is not "they are saved in such and such spot," you are at risk for audits, and face some major roadblocks if you ever have to seek licensing, registration, or other governmental permissions. These basic accounting mechanisms are necessary for fundamental government communication.
Managing employees (and contractors) is a headache causing problem. With payroll taxes, Obamacare legal requirements, Worker's Comp (when must you have it on a contractor?), Unemployment Insurance and more, just the reporting aspects of running a payroll can overwhelm someone who is not an expert at bookkeeping.
Add in the necessary documents you must file (W-2 vs 1099), and you have opportunity for disaster, or for a great relationship with an outside bookkeeper. Unless you enjoy accounting, or it is your business, it makes sense to engage someone else to cover your bases.
To discover how we can partner with you and provide accounting services to meet your business’s needs, please contact us at firstname.lastname@example.org or call 1-844 MY ACCTG.
Simplicity Consulting is a professional accounting and administrative services firm run by a talented team of professionals. With a combined experience level of over 40 years, we provide high-quality, innovative services to small and medium sized businesses.