For small businesses the roles of their business accountants depend, more often than not, on the size of their company. In the case of a very small company, the small business accountant may handle everything: payroll, internal auditing, taxes, keeping the books up to date, etc. In the case of a larger company these important tasks and functions will be broken down between groups of internal personnel or handled through outside small business accountants and their firms.
Some examples of internal accounting related functions would be the internal auditors who are responsible for monitoring and record keeping of cash in-flow and expenses in a company. Needless to say this is for companies that are probably much larger than yours. The good news is that small business accountants often have colleagues or contemporaries – people they know and trust, that they will recommend on a project by project basis.
Either internally or externally – perhaps a referral from your small business accountant, someone can be found who would be responsible to make sure that money was being appropriately used and all monies were accounted for. This may be an experienced bookkeeper on your payroll, a bookkeeping service, or an outside small business accountant who works through your accountant.
Tax accountants, a specialty unto themselves – would be responsible for compliance matters such as the filing of your taxes. In addition they should be knowledgeable regarding all the legal ramifications, strategies, record keeping, etc that go along with it. Again, this is someone you can hire as a permanent part of your operation – although it may more effective to engage their services at the recommendation of your small business accountant.
Small business accountants who are involved in payroll related areas would, in addition to oversight of all things related to payroll tax management, withholding, and reporting. This is usually handled through bookkeeping or payroll specialists who are not necessarily accountants, however it is up to your small business accountant to be on top of their work.
Your small business accountants know your business, understand financial management and are up to date on ways to maximize profits. Their involvement in your business provides you with every opportunity to make every dollar coming in to the business as valuable as it possibly can be.
While it takes some effort on your part to make a relationship with your business accountant pay off consistently for your business, the investment of time and money can reward you in many many ways.
When it comes to engaging the services of any professional, not just small business accountants – you have 100% of the power to define the relationship and if it is not working for you, to discontinue it.
You can and should make them accountable to you for the actions they take on your behalf. You certainly should give them as much authority and responsibility as they earn, based on their continuing track record.
But remember, small business accountants do not have to write the check. That’s your responsibility.
If you want to be successful, put together a team of professionals to help you. Typically, management of the progress of the team falls to the business accountants you have on board. They understand that the valuable insights of their
small business accountants can help them focus on what is important to them, their family, and the business – for years to come.