Simplify Small Business Accounting: Expert Tips for your Help! 

Managing many tasks and operational needs of your small business in Seattle is no easy task. As an entrepreneur, you probably have your hands in almost everything, but when it comes to accounting and tax preparation, you must choose to get assistance from an expert. Tax codes, compliance requirements, and other related tasks, such as bookkeeping and payroll, require time and expertise, and it is indispensable that you have help on demand. In this post, we share expert tips on simplifying small business accounting.

1. Outsource soon: Just that one step of hiring a CPA or accountant in Seattle can change things drastically for your business. Many small businesses only decide on that aspect when there is evident trouble or unexpected pressure during the tax season. Instead of waiting, outsource soon, especially when there is no clarity on when or whether you will have an accounting team.
2. Keep business transactions separate: This is probably the most basic and essential thing for any small business. You have to keep your personal and business transactions separate, and your company should have a separate bank account.
3. Track all expenses: While you may assume that some expenses are just too small or don’t need to be tracked, you are mistaken. Every bill, every incoming penny, and every transaction must be recorded properly. Even something as small as a few dollars spent on office supplies every month is critical.
4. Invest in an accounting solution: QuickBooks and many other software solutions are great for bookkeeping and don’t cost a fortune. If you don’t know where to start or how to implement a proper system, ask your CPA or accounting service for help, and they can help during the entire process.
5. Spend time on tax planning: Small businesses and startups often don’t think of taxes except for the peak season. However, that approach is wrong and can lead to higher taxes. You have to work with your CPA or accounting firm to leverage all the strategies and practices that can bring down the tax amount. Regardless of the size of your business, tax planning and utilizing available deductions is non-negotiable.
6. Focus on reconciliation periodically: Experts and CPAs often emphasize reconciling books with bank accounts, and the process not only helps with keeping track of business performance but can also help find fraud. Ask the accounting firm about the reconciliation process and how often they can do it.
7. Leverage the expertise of your accounting team: If you have hired a CPA or accounting firm, you must think of using their proficiency beyond tax preparation and filing. Because they know the financial situation of the company, they can offer sound and transparent financial advice on many issues, including mergers, expansions, and acquisitions.
8. Take a deep look at financial statements every month: Your accounting firm will usually prepare financial statements, including profit and loss statements and balance sheets every month, quarter, and year. These reports offer deep insights into whether the business is performing as expected if certain things need attention, and how you can plan for the future.

Finding the right accounting service

There are countless accounting firms in Seattle, but before you choose one, you must clarify your objectives. As long as you know the requirements of your business, hiring an appropriate service doesn’t have to be hard. A firm may just help with taxes on demand, but if the client wants ongoing and comprehensive services, they can offer a monthly fee. You have to consider what you need, and it is always better to team up with a CPA or accounting service that handles everything from accounting and taxes to payroll and bookkeeping.