Are you searching for information about small business accountants? Maybe looking for details about what CPAs who work with small businesses do? You’re not alone! Did you know that approximately 70% of small businesses utilize tax professionals to help with tax preparation and dealing with the IRS? Over the years, we’ve fielded tons of questions from small business owners about taxes, primarily about what they need to keep track of for tax purposes, but we’ve also answered a few questions about what services accountants should be providing, including quarterly bookkeeping reviews. Read on for information about what information your accountant should be providing in your quarterly bookkeeping reviews.
Your accountant should double-check to make sure that all federal and state tax payments are up-to-date at least once a quarter. They should let you know whether all payments are current or if there are any outstanding balances. This is a critically important task; it’s one of the most important ways to ensure your small business doesn’t end up in financial difficulties because of unpaid taxes.
Accountants regularly provide quarterly cash flow reviews that let business owners know how much money they have on hand. If you have a medium-sized family business, more frequent monthly reviews might be the better option. Knowing how much cash you have, where that money is coming from, and thinking about how best to use that income to expand are all critically important in today’s dynamic business environment.
In order to pull together a company’s expenses and sales, the company will create a profit and loss statement. It offers a fantastic glimpse into your company’s financial health. It’s also a fundamental planning tool. Because it’s part of the regular quarterly bookkeeping, it allows you to see trends over time. Consider using your profit and loss statements to compare where your company actually is with your growth plans. Are you exceeding your expectations? — Great, use the information to figure out what’s working well. Are things not going as well as planned? — Your profit and loss statement can help you determine where to make changes.
Remember, it’s always better to be proactive when it comes to working with a CPA to take care of your business taxes. The right accountant can not only help you stay on the right side of the IRS but also give you the tools to grow your business.
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