All small businesses at some point need to monitor their cash flow and generate financial reports to increase profitability. The cost of hiring the best accounting services for your small business, on the other hand, is not always suitable or prudent. Fortunately, you can meet your needs through online small business accounting services. The main challenge for small businesses is identifying the accounting services perfect for their needs among the dozens available. Nonetheless, using a set of criteria such as cost, service range, software compatibility, and small business expertise. Stay with me as I take you through all you need to know about small business accounting services.
Overview
Business accounting is essential to the operation of small businesses. This is because this type of accounting service manages a company’s daily financial activity while setting long-term financial goals. Starting from forecasting to invoicing, business accounting works with bigger decision-making and granular level of operations through financial tracking, analysis, recordkeeping, budgeting, and more.
Hence, the ability to predict financial statements in order to provide data about KPIs informs better businesses leading to more successful valuations. Thus, business accounting services are required by small businesses to produce accurate financial records. To provide professional tax advice, ensure adherence to federal and state tax laws and other business regulations.
Is It Worth Hiring an Accountant for a Small Business?
An accountant can help you handle growth transitions, such as hiring employees or taking on more office space. They’ll look after the detail (payroll, employee tax management, property tax, utility payments, and so on), leaving you free to look at the bigger picture of the way your business is growing.
Best Small Business Accounting Services
If you run your own business, you probably already understand the importance of accounting. Hence, accounting allows you to track the cash flow of your business. Not only can you analyze the performance of your business now, but keeping up the books can help you make important decisions for the future. It also keeps your financial records organized, making it easier to pull numbers when applying for a loan or your tax returns if audited by the IRS.
Best Small Business Accounting Services: Factors to Consider
It’s of high importance that you know what to look for in accounting services and put in the research to ensure you choose a professional who is the right fit for your business. Here are tips to help you choose the best accounting services for your small business.
#1. Understand Your Needs
Before taking a step, you need to have a basic understanding of what you want the accounting services to do for you. Do you need someone to handle accounting and financial statements? Or an accountant to help you prepare and file your taxes? however, if you require someone to provide strategic tax advice, file your taxes, or assist with an audit, you might be best off choosing a Certified Public Accountant (CPA).
#2. The Cost of Services
You will need to figure out how much you are willing to spend on accounting services for an in-house employee vs. outsourced services. Depending on how you’re handling your accounting currently, pricing guides for outsourced accounting services may initially seem high. But be sure to keep in mind the cost of hiring accounting services for your small business otherwise would pay a full-time employee or multiple employees to perform those same functions.
#3. Access Qualifications and Experience
Reputable accounting services should have the qualifications and experience to support their knowledge and expertise. It is in your best interest to look for those who have experience working with other businesses in the same industry as you. This can be beneficial because they are likely to be familiar with the needs, challenges, and tax laws specific to your business type or industry. For example CPA, CMA.CGMA certifications, etc.
#4. Meet with Prospective Candidates and Ask Questions
Once you’ve conducted your initial research and compiled a list of a few prospects, it’s time to conduct a series of meetings or interviews with them. This is your opportunity to ask questions and gain a better understanding of how they work and the cost of accounting services. You might find the answers to some of these questions with a little online research, but it’s still a good idea to spend a few minutes with a prospective accountant to get a better idea of whether they might be the right fit for your business.
#5. Find Referrals and Reviews
Are you friends with other entrepreneurs or part of a small business association or network in your community? One way to discover the cost of dependable accounting services for your business is to ask for recommendations from your peers. At the same time, you might also conduct a Google search to find them in your area. You can also seek out online reviews and use them to compare and evaluate prospects.
Best Small Business Accounting Services: Examples
Below are the best small accounting services for you,
#1. inDinero
inDinero covers its clients with a wide range of accounting services, an easy-to-use platform, access to in-house experts, and a dedicated customer support team, making it my choice as the best overall accounting services. Since its founding in 2009, inDinero has been perfecting its offering of an all-in-one accounting service for small businesses. In addition to one of the widest arrays of services, inDinero offers clients access to a team of staff accountants and financial experts, just a click or call away with its easy-to-use dashboard or mobile app.
#2. Paro
Businesses that prefer more direct business relationships can use Paro to match with the accounting services that best meet their finance and accounting needs. That makes Paro our choice as the best accounting service for hiring freelance accountants. It operates as a marketplace that brings together businesses with highly vetted finance and accounting experts to directly work with you.
#3. Bench Accounting
For businesses with straightforward financials that are ready to outsource their accounting, Bench is equipped to take it all on. Bench Accounting was launched in 2012 for the sole purpose of serving the accounting needs of small businesses for both cash-basis and accrual-basis reporting. It’s now the largest accounting service, with in-house professionals for more than 11,000 business owners.
#4. Wave Advisors
Wave has grown to become a popular choice for small businesses because of its free and low-cost accounting software. Whether you’re a Wave user that’s too busy to maintain the books or you need an accounting and bookkeeping solution, consider signing up for Wave Advisors. Wave Advisors offers personalized support through its in-house team of accounting professionals. With their services, your books will be handled each month by trained financial professionals.
#5. Pilot
The Pilot is a relatively new firm founded by former startup founders and backed by entrepreneurs who clearly understand other startups and their accounting needs. This is because it combines a wide range of financial services into a single plan. You can also customize your offerings and have access to a dedicated team. The pilot provides customizable solutions for businesses that can afford the ongoing costs.
Can a Small Business Do Their Own Accounting?
With so many low-cost accounting tools available, it’s easy for business owners to do their own accounting or rely on software to handle their accounting needs. However, doing your own accounting for your business may not always be the best plan.
Online Small Business Accounting Services
Online small business accounting services also known as virtual accounting are tools used by small businesses. The best online accounting services for small businesses are affordable and easy to use, offering a wide range of accounting solutions, and providing easy access to dedicated accountants. Many of the top online accounting services for small businesses also have add-on services, such as catch-up bookkeeping, payroll, and tax filing, which can streamline your work.
Online Small Business Accounting Services: Examples
Keep your company’s financial records organized and updated with these online accounting services for small businesses. They include,
#1. 1-800Accountant
For small businesses with straightforward accounting needs, 1-800Accountant offers a solid basic plan for a flat fee of $129 a month, making it our pick as the best accounting services for basic plans.1-800Accountant is one of the more established online accounting firms. It combines personal support from a nationwide team of experts with the convenience of digital technology for a flat rate.
#2. QuickBooks
QuickBooks is among the top picks for online accounting services because it offers cleanup services that vary based on your company’s needs for your first month. Subsequent months are for upkeep and costs $200 per month. This service is ideal for business owners who want to get their accounting in order but don’t have the time or resources to do it themselves.
#3. Bookkeeper 360
This provider is one of the best online bookkeeping services for your business if you use Xero or Quickbooks accounting software. Bookkeeper360 has three packages, with costs starting from $349/month for cash and $499/month for accrual-based accounting. These costs vary according to which tasks you want Bookkeeper360 to perform and the amount of your monthly expenses.
#4. Ignite Spot Accounting
Ignite Spot can provide small business owners with a QuickBooks Pro Certified accountant, online accounting and bookkeeping services, detailed financial reporting, tax prep and planning, CFO services, etc. It comes with everything you need. Its A+ BBB rating proves it.
#5. Reconciled
Reconciled is another excellent solution for outsourcing small business accounting. These online services allow for effortless management of your books, as Reconciled will provide each of their client businesses with a dedicated, US-based team of professionals. The team will handle the cleanup of your books if needed and offer excellent bookkeeping and CFO services and tax and advisory services.
Do I Need an Accountant If I Use Quickbooks?
Yes, you do need a bookkeeper even if you have Quickbooks. We understand that you’re a small business owner, and you want to save money where you can. But relying on software alone may cost you more in the long run. Accountants and bookkeepers can offer so much more than Quickbooks.
Small Business Accounting Services Cost
The first thing to understand when trying to determine how much accounting services will cost for your small business is what services an accountant will provide. Accountants can cover a wide spectrum of services from basic accounting to vendor invoices, credit card transactions, bank reconciliations, customer invoices, collections, etc, to more complex things like cash flow forecasting, financial statement preparation, and financial projections. The cost of accounting services for a small business varies depending on your location but often ranges between $40 to $100 per hour. While many charges by the hour,
Small Business Accounting Services Cost: Factors To Consider
When setting your accountant’s fees, you need to consider the needs of your business, the accountant’s expertise or experience level, and the specific accounting services they will render to your business.
#1. An Accountant’s Experience and Certification
The rates that a recently qualified accountant will charge you will differ from what a CPA or a small business accountant, who has worked for several businesses for decades will require. So, you’ll need to check how advanced an accountant’s education is and the type of certifications they have. An accountant can be a:
- Master’s degree holder
- CPA
- Certified Fraud Examiner (CFE)
- Certified management accountant (CMA)
You’ll need to pay higher rates for these accreditations since they portray credibility. Also, someone with a significant clientele is expected to have more experience, which will help your financial growth, so you should pay them more than a recent graduate.
#2. Your Company’s Accounting Needs
To set your accountant’s fees, you need to consider the professional services your business requires from the accountant. The cost of accounting services for small businesses depends on the type of services they offer and how frequently they offer them. For example, if you require them for tax planning and filing, payroll management, auditing, and consulting, they will charge you more than when all you need is tax preparation.
How To Determine an Accountant’s Fees
You can calculate accountants’ fees using these three common fee structures.
#1. Hourly Basis
This payment structure is popular and is determined by the accountant’s level of expertise and your company’s needs. An accountant’s rate can range from below $37 to more than $400 per hour. However, ensure your rates adhere to the United States Department of Labor’s wage regulations.
#2. Per-Project Basis
If you need an accountant only for occasional projects, such as tax preparation and audit, you can hire an accountant per project. The accountant tells you how much is required to complete the project, and you will pay a one-time fee. Usually, they multiply their minimum pay rate by the number of hours estimated to complete the project.
#3. Monthly Basis
If your business requires ongoing accounting services, it’s advisable that you opt for a monthly salary structure. You can always budget the accountant’s fees as part of your business expenses.
What Is the Average Monthly Cost for Small Business Bookkeeping?
On average, outsourced bookkeeping services cost anywhere between $500 to $2,500 a month for small and medium businesses depending on the hours you need each month. Even at the top of the range – $2,500 per month –, it would cost your business $30,000 a year.
Small Business Accounting Services Birmingham Al
Today, as businesses are juggling more daily responsibilities along with more complicated tasks like accounting, finance, compliance, and risk management, you need an accounting firm that can be an extension of your business team not just your accountants. At Birmingham Al accounting services for small business offers an extensive team of credentialed professionals to handle complex matters. Starting from risk and compliance to daily financial operations to strategic planning for the future. Small business owners find it hard to locate reliable CPA accounting services in Birmingham Al which can be a challenge.
Small Business Accounting Services Birmingham Al: Examples
Below are the best accounting services in Birmingham suitable for small businesses,
#1. Accounting Complete
This is a professional firm providing small business accounting services in Birmingham and nearby areas. They offer a wide range of services, including bookkeeping & accounting, payroll processing, tax planning & preparation. The company developed a simple three-step small business freedom plan to help the clients take control of their businesses. It also uses the latest apps and technology, like Quickbooks, for clients to conveniently access the information they need.
#2. Cade, Crenshaw & Associates, P.C.,
Is a full-service public accounting firm that has been serving clients in Birmingham since 1986. Its range of services includes tax planning and compliance, auditing, and business valuations. Additionally, it provides accounting and tax strategies and planning services for individuals and small businesses. It also offers litigation support and expert witness services.
#3. Cameron Travis
They have provided corporate tax and accounting services to clients in Birmingham and nearby cities for over 35 years. The firm primarily serves nursing homes, professional service providers, restaurants, and clients in the hospitality and real estate sectors. Its services include audit and assurance, business foundation, business management, outsourced accounting, and cash management. The firm caters to corporations, partnerships, LLCs and LLPs, sole proprietorships, individuals, and not-for-profit entities for tax services.
#4. Pearce, Bevill, Leesburg, Moore, P.C
This firm has been operating in Birmingham since 1981. It offers a wide range of services including tax preparation and planning, business accounting and bookkeeping, estate planning and administration, and litigation support. The firm invests in training its employees on the latest trends in accounting, tax and consulting services, and technologies. Moreover, it works with clients in various industries such as healthcare, financial institutions, real estate development, manufacturing, nonprofit, and construction.
#5. Roger A. Barlow, CPA, PC
Is a Birmingham accounting firm that has been serving businesses and individuals for over 32 years. The business provides services including international taxation, tax management services, audits, litigation support, IRS representation, payroll services, accounting services, and bookkeeping. In addition to retirement planning, financial planning, QuickBooks installation, tax preparation, advisory services, entity selection, forensic accounting, employee benefits, profit-sharing plans, and pensions. Roger A. Barlow, CPA, PC offers free consultation. The firm also has an A+ rating with the Better Business Bureau.
References
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