Sunday 9 December 2018

The Need For Small Business Accounting Nassau County

By Carolyn Burns


Accounting is a trillion dollar industry. It supports the global economy. Without accountants, the global economy will crash and there will be stock market failure all over the world. Accountants make the world a better place. An enterprise cannot survive without the services of accountants. There is a high demand for small business accounting Nassau County. This service is usually demanded by small and medium sized enterprises. Mom and pop businesses are at the heart of the American economy. They employ many people and provide much needed taxation revenue. They are just as important as Fortune 500 companies.

Small business accounting is not a luxury. It is a basic need for startups as well as other businesses in the United States of America. The importance of accounts must never be underestimated at any moment in time. This business function should be given the seriousness that it deserves. Accountants deserve to be respected by all members of society. They serve crucial roles in America.

Accounting is a basic need because of the desire for profit. There cannot be a profit in a firm if funds are not well accounted for. Mismanagement of financial resources will lead to business failure. In America as well as in other countries all over the world, most enterprises usually do not survive past the fifth year of operation.

At the core of profit accounting there is a financial statement that is called a profit and loss (P&L) statement. This is usually prepared once in a year by a team of accountants. This statement will be prepared by the information that has been received from the other books of accounts in an organization. There should be diligent preparation of statements.

A profit and loss statement will have a number of entries. There will be a number of expense entries. These are usually placed on the right side of the statement in the United States of America as well as in the United Kingdom. The International Accounting Standards usually lay out how the various financial statements have to be prepared by accountants.

Accounting is also needed because of the need for a balance sheet. This will show the financial position of a firm at a particular moment in time. The balance sheet will have a number of items. It will list all the assets. There are current assets and fixed assets. This statement will also have the liabilities and the capital of an organization.

Taxation issues require accountants. It is illegal for an enterprise to evade taxes. However, tax avoidance is totally legal in America as well as Canada. Accountants will help a firm to take advantage of taxation loopholes in a legal manner to facilitate the payment of less tax. The accountants will also prepare the taxation returns and send them to the Internal Revenue Service.

An entrepreneur has to figure out the best way of handling financial issues. There is always the option of setting up a financial department, purchasing the right equipment, buying financial software, and hiring a number of competent accountants. However, this option is capital intensive and time consuming. The best alternative for a small enterprise is to outsource.




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