A strong small business needs a high-quality product, strong branding, and an accurate accounting of its cash flow. As tedious and confusing as managing the books can be, even relatively minor errors can quickly grow, with compounding effects that could cost you money. Below are some of the most common challenges business owners hire accountants to handle.

Common Accounting Challenges for Small Businesses

1. Maintaining the Books

With everything you have to tackle every day, it’s easy to let the bookkeeping slide. However, falling behind on your records makes the rest of your accounting more difficult, so it’s important to keep your books current. An accountant can help you set up an effortless system for recording daily transactions and reconciling your bank statements at the end of the month.

2. Payroll

Calculating payroll is a difficult job, especially if you have several employees with different wages. Payroll mistakes can also be expensive if you make errors while calculating their taxes, potentially resulting in fines and other penalties.

3. Calculating Taxes

In addition to payroll taxes, you may also have to pay both state and federal income taxes, tariffs on imported goods, and other fees. Some of these are due on a quarterly basis, while others are annual. Knowing how much to pay and when taxes are due is crucial for avoiding trouble with the IRS and state revenue agencies.

4. Setting Budgets

Accountants handle the monthly finances, but they also help develop a long-term strategy for allocating funds and growing your business. Developing accurate projections and figuring out where that money should go in advance will help you avoid financial pitfalls and sudden emergencies.

For over 38 years, the accountants at Imperial Agency have provided comprehensive services to businesses throughout Bergen County, NJ. Whether you need a professional to take over payroll or need an accounting firm to handle all of your company’s finances, their team has the skills, experience, and tools to meet your needs. Visit their website for more on their accounting services, or call (973) 546-9567 to make your first appointment.