An accounting system is an essentiality that no business can do without no matter what the size of the company is. Such a system would help your company maintain a record of your revenues, assets, expenses and liabilities. You can either develop the accounting system yourself or use pre – prepared products in the market. You can also take the help of a reputed accounting firm in Orlando.
At the depth, accounting is a large and complex field that covers a lot of business types, specific circumstances and varying situations, but at the surface, it is pretty much the same. Here are the fundamentals of accounting that you need to know for your business.
Accounting Orlando Step 1
Appoint a reputed accounting firm in Orlando, and with their help you should set up your books. You can do this by yourself as well, but a pro is always recommended and would be able to do a better job than you can. You can either hire a Certified Public Accountant, abbreviated a CPA or an Enrolled Agent, also known as EA, depending on your needs.
Be sure to maintain regular contact with the firm that you hire so that you are aware of your current financial standings at all times.
Accounting Orlando Step 2
As your business expands, you should think about developing an in-house accounting department. Be sure to plan a proper budget that involves salaries for new employees, technological infrastructure, space, additional equipment and so on.
Accounting Orlando Step 3
This step involves setting up the accounting system, which can either be single-entry or double-entry. Install a single-entry accounting system that would require you to post your transaction once only. You can also go for a double-entry system if you want to post each transaction twice. The alter choice is a greater option if you want a system that can facilitate report creation and preparation for managers, stakeholders and other concerned employees.
Accounting Orlando Step 4
Cash-basis revenue is a technique that regards an amount as income when it is received and as expense when it is paid. This would provide you with a clearer picture of the money you have with you at a given instant of time. Another technique is the accrual-based recognition which regards an amount as income when you earn it and as an expense when it is incurred. This is a good option for creating financial statements.
Accounting Orlando Step 5
Set up all relevant accounts in the software such as accounts payable and receivable, sales, cash and expenses account.
Accounting Orlando Step 6
Create a record of all important financial documents such as receipts, invoices and so on. You should have both soft and hard copies, and make sure to create backups.
Accounting Orlando Step 8
Prepare an income statement, a balance sheet and a cash flow statement on a yearly basis. If you have trouble with this, seek the services of a reputed accounting firm in Orlando. Analyze these reports to gauge your financial performance. Make amendments in areas where you did not do so well.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.