What are the Tasks Performed by Small Business Accounting Firms to Facilitate Business Operations?
Will it be helpful if my small business utilizes services of an accountant? Yes, it would certainly be useful. An accountant can carry out varied tasks to help your business excel. Let us go through the details here.
Tasks Performed by Small Business Accounting Firms
Small business accounting firms carry out a range of task to ensure your business continues to run smoothly. Let us go through details of few of the important duties they perform in this regard.
Small business accounting firms carry out analysis on regular basis to evaluate your organization's expenditures and incomes as well as whether they have been categorized in right manner.
They also have the competency to perform a detailed review of your accounting software (such as QuickBooks) and provide recommendations about adjustments which would be helpful. Last but not the least, they can also take up the complex task of cash accounts reconciliation to ensure your business is moving in the right direction.
Management of Accounts Receivable
Managing accounts receivables is an important task for a business and by hiring an accounting firm you will have the assurance that this task will be performed in right manner.
Additionally, they also manage cash flows since proper management of cash flows is important for the financial health of any business. Few of the other tasks small business accounting firms carry out in this regard include:
- Processing of invoices
- Posting of all the payments and
- Proper management of payments that are due
Management of Accounts Payable
Similar to accounts receivables, accounting firms also take up management of accounts payable. In this regard, they carry out many different tasks such as:
- Verification of purchase orders
- Receive bills of lading
- Collect invoices and receive records
- Ensure bills are paid in timely fashion so that late fees can be prevented
- Make use of discounts for early payment (wherever available) when early payments are made.
Manage Payroll Processes
Accounting firms also have the competency as well as experience to manage various payroll processes such as:
- Carry out payroll processing on monthly/semi-monthly, bi-weekly and weekly basis
- Carry out the task of direct deposits
- Complete payroll tax returns as well as unemployment tax returns as applicable
- Preparation of W-2 and 1099 as well as their distribution
- Creation of payroll reports for all the payrolls that are processed
- Manage direct deposit stubs
Processing of W-2s and 1099
Accounting firms also have the responsibility of processing W-2s as well as 1099 and submit required forms to the authorities. Moreover, they also mail necessary sub-contractor as well as employee copies.
Compensation Audit for Workers
Another important task performed by small business accounting firms comprises of compensation audit for workers. Generally, the carrier for workman's compensation will be asking for an audit of company's payroll on an annual basis. This is a usual process which is carried out for establishing a proper classification of employees working in your company. The role of an accountant here is to prepare all the required forms so that audit can take place smoothly without any problems.
Thus, to conclude we will say that if you are running a small business then you will certainly gain a lot by using services of accounting firms.