Day: June 7, 2022

Small Business Accountants and BookkeepersSmall Business Accountants and Bookkeepers

In addition to ensuring that the company pays its bills on time, small business accountants must also make sure that payment terms are taken advantage of. Using invoice terms such as 2%/10, Net 30, or the like can save a company a great deal of money. These terms are based on the total invoice due in 30 days. Small business accountants must know how to take advantage of these terms and suggest ways for the company to optimize its marketing dollars.

What Does a Small Business Accountant Do?

While small businesses accountants and bookkeepers share the same responsibilities, they have different areas of expertise. While bookkeeping involves recording and maintaining financial data for a small business, accounting involves analyzing and interpreting financial data to develop tax strategies and prepare financial statements. Small business accountants also perform analysis and taxation of the company’s financial data, while bookkeepers record expenses and income. Whether a business owner hires a bookkeeper or an accountant, accounting is critical for the future of the company.

If you’re wondering whether or not to hire an accountant, you should consider performing a cost-benefit analysis. By comparing costs, benefits, and timeframes of hiring an accountant, you can determine if it is worth it for your business. Make sure to calculate the hourly fee an accountant charges and divide it by the time it will take to complete bookkeeping tasks. In addition, make sure you’re aware of the overhead costs that the accountant may incur.