client accounting services

The Ultimate Guide to Small and Medium Business Accounting

Small and medium-sized businesses (SMBs) are the backbone of the US economy and play a vital role in economic growth and job creation. However, if there is one thing SMB owners have in common, it’s their struggle with accounting. It is quite understandable – no one starts their enterprise thinking they will spend hours staring at spreadsheets trying to make sense of all their business transactions. Yet they can’t just put accounting on the back burner. It is the lifeblood of any business and is essential for its financial stability, informed decision-making, and regulatory compliance.

Even more mature organizations are struggling to find talent to properly staff their accounting and finance needs.

So, what can they do?

Here’s a closer look at what small and medium business accounting involves, their major challenges, and how client accounting services (CAS) through remote talent can solve their problems.

Inventory for Small Business Accounting – What Does it Involve?

Small and medium business accounting encompasses various crucial financial tasks for an enterprise’s smooth operation and growth. It involves:

  • Cashflow Management or Bookkeeping: The foundation of accounting, bookkeeping entails monitoring and recording all financial transactions, from income and expenses to assets and liabilities. Accurate bookkeeping is crucial for understanding a company’s financial health. It also helps businesses plan for future expenses, such as investments or expansions, by accurately showing their current financial situation.

  • Financial Statements & Reporting: Preparing financial statements, including income statements, balance sheets, and cash flow statements, provides a clear overview of a company’s financial performance. Financial reports also provide valuable information to external stakeholders, such as investors or creditors who may be interested in investing or lending money to the business.

  • Payroll Management: It involves tasks such as salary calculation, disbursing wages, managing taxes and deductions, maintaining payroll records, preparing employee statements, and year-end reporting.

  • Tax Compliance: Ensuring accurate and timely tax filings, including income tax, sales tax, and payroll tax, is a crucial aspect of accounting. It helps businesses prepare for potential changes to the tax code, such as new rates or regulations, so they can be prepared when those changes take effect.

  • Budgeting and Forecasting: Creating budgets and forecasts helps SMBs plan for the future and make informed financial decisions.

Every aspect of business accounting is crucial for the day-to-day operation of the business and compliance with law. The problem is that to navigate the complex accounting processes, businesses often need to rely on more than one accounting professional – accountants, bookkeepers, tax advisors, and more. This can become too much for small business owners and put a heavy burden on their pockets.

Challenges Faced by Small and Medium Business Owners
  • Accounting Talent Crunch: The US is facing a nationwide accounting talent crunch, which will worsen in the future. There are too few accounting professionals to fill the gap. Even large CPA firms that provide Client Accounting Services face the same issue.

  • Technological Advancements: The rapidly evolving landscape of accounting software and technology can overwhelm small business owners who may not have the time or expertise to keep up with the latest advancements.

  • Regulatory Compliance: Tax and accounting are constantly subjected to new laws, regulations, and reforms. Navigating these complex and ever-changing tax and financial regulations is a significant challenge for SMBs, and non-compliance can lead to severe penalties.
Client Accounting Services – How can Remote Talent be a Solution?

Client Accounting Services (CAS) is not new to small and medium businesses. For a long time, businesses have been employing CPA firms for bookkeeping, financial reporting, tax preparation, and more. But with the current talent crunch, even that option is becoming more and more difficult. Currently, less than 1% of CPA firms have the required staff to carry out their workload.

To overcome this, remote talent has emerged as an effective solution. By employing remote talent, business owners can access highly skilled accountants and financial experts from around the world, allowing them to benefit from professional expertise without the cost of hiring full-time, in-house employees. Remote talent can handle various accounting tasks, allowing businesses to adapt to their specific accounting requirements.

Large corporations have been taking advantage of remote talent for client accounting services for years now. It’s time for small businesses to leverage remote talent solutions.

Parting Thoughts

Accounting is a crucial but often challenging aspect of running an SME. Business owners face difficulties in talent acquisition, keeping up with technological advancements, and ensuring regulatory compliance. Employing remote talent for client accounting services provides viable solutions to these challenges. By tapping into remote talent, SMEs can focus on their core operations while still maintaining sound financial health and compliance with financial regulations.

At alliantTALENT, we specialize in delivering highly valuable remote talent solutions tailored to meet the unique needs of small businesses. Our comprehensive services encompass quality audit and assurance, expert tax advice and guidance, and invaluable client accounting practices. With a deep understanding of the importance of exceptional service, our industry-leading professionals are dedicated to providing expertise and support to help you navigate any business venture or challenge. Get in touch with us today!

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