A businesses size definition varies by country and by industry. The same size consideration in Australia might be vastly different than here in the States. So too would the small business accounting be different. Here, a small business usually has less than 250 employees in the manufacturing sector and less than $7 million in annual receipts for non-manufacturing industries. Other factors used to define the size of a small business include sales, assets and net profits.
There are many types of small businesses, but they usually fall into the following categories: neighborhood convenience stores, bakeries, delicatessens, hairdressers, trades such as carpentry and cooking, lawyers, accountants, restaurants, bed and breakfast and guest houses, photographers, online businesses like web design, content writing and programming. There are many more types, like jewelry makers and water well hunters, but for the most part small businesses fall into the above categories. Small business accounting might be necessary for your business, circumstances depending.
You might not need small business accounting, if you are able to easily keep track of all outgoing and incoming money and have no employees. The more employees you have, the more expenses there are and if there are various methods of earning money, might all conglomerate to make doing ones own accounting much more complicated. For instance, there are provisions in the Patient Protection and Affordable Care Act that may give your small business tax credits, depending on how many employees and how much the employees make. Knowing about this is nice, but if you are not skilled with doing the taxes for your small business, then you may never know about the tax credits you may be qualified to receive.
Small business accounting can be complicated, or it can be simple, it all depends on the business itself. Finding a skilled accountant should be a top priority if you find yourself needing one. Hiring the right accountant for the job would be an investment in itself because of the time and headache it might save you. Doing you taxes properly will also give you peace of mind that the Internal Revenue Service will not be knocking at your door anytime. Finding the right accountant may be tricky task as well because we have all heard stories about embezzling accountants or ones that managed to help their employers into a jail cell. They are not everywhere, but they should still be watched out for, like having a lifejacket close to hand while in a boat: just in case. Do your research and ask to see certification or find a distinct and credible accounting agency.
Source : articledashboard[dot]com