Owning a business may be exciting, but it also requires a lot of work. For instance, coming up with a sellable idea, services, or goods. Then develop your business and charge for products or services enough to gain profit. Marketing your company, finding suppliers, employees, and managing everything require a lot of time and effort.
But there is one thing that most business owners dread the most — accounting for taxes. Everyone in the US is a taxpayer, and even if there are any exceptions, accounting is still required.
Bookkeeping definitely can be challenging. But it’s required by the US laws. On the bright side, bookkeeping has a huge benefit for growing your business. By checking your investments and returns, you get a better understanding of what investments work best, and what objectives should be reconsidered.
Luckily, you don’t need to account for your business on your own. And you don’t even have to create a separate job position, you can use Bookstime services. Check out the article to learn more about accounting in Georgia, what are the peculiarities of bookkeeping, and how Bookstime can help.
Peculiarities of Accounting in Georgia
Accounting services several purposes for different individuals and organizations. For example, a business has to account for its financial operations to then be able to see investments and gains, pay taxes, etc. Banks need financial statements of businesses when they ask for loans, in this case, this data is needed to analyze whether the company can repay the loan.
Even investors need accounting data to be able to make a decision. For example, when comparing several different promising companies, they make their decision based on the accounting information.
For business, the main value is in reports that analyze financial statements. When checking financial statements, it’s a lot easier to understand the overall situation in the company, as well as within smaller departments.
In Georgia, you have to follow the overall US accounting principles. Making a mistake when recording financial statements may lead to fines, and in some cases, a business owner can even be accused of not paying the required taxes. There are two different sets of rules when it comes to proper accounting.
Tax Bookkeeping and Accounting Principles in Georgia
In the US and in the state of Georgia, there are two different sets of rules. The first one is financial accounting, and the second is tax bookkeeping. Financial accounting is described in GAAP. These principles describe how financial statements should be recorded. Usually, they should include all financial statements of the business.
Tax bookkeeping is related to every financial transaction that affects the business’s tax burden. That’s one of the reasons why many business owners prefer either having an individual bookkeeper or a full department dedicated to bookkeeping.
Bookkeeping is a rather difficult job that requires knowledge of the laws and specific software used by the company. If individuals can keep account of their financial statements without the aid of professionals, it’s not the case with businesses.
An accountant that keeps track of all business’s financial statements, has a lot of responsibilities. Usually, an accountant that works for a company has the following responsibilities:
- keeping track of all financial statements of the business;
- generating financial reports related to the business’s performance;
- monitoring investments and returns;
- bookkeeping for taxes.
Usually, an accountant keeps track of transactions according to one of two general accounting methods: accrual and cash basis principles.
Accrual and Cash Basis Accounting
If you have a business in Georgia, the chances are that you are already using the accrual method. It’s the most common method used for accounting by accountants.
Accrual accounting means that expenses and returns of the company are recognized when they occur. Cash basis accounting occurs when expenses are spent, and gains are received in cash.
Both methods have peculiarities, advantages, and disadvantages. Some accountants prefer accounting based on the accrual method as it is usually requested by the Internal Revenue Code of the US.
To make sure a business chooses the best bookkeeping method according to individual needs, you can use bookkeeper services. For example, Bookstime is an official partner of the QuickBooks expert.
The cost of bookkeeper is reasonable, especially compared to the expenses used on holding a position of a bookkeeper in the company. You can use the “accounting services near me” request in Google, or choose a better solution to find an accountant.
Accurate Accounting with Bookstime
Bookstime is an accounting firm that offers the services of the best accountants in Georgia and the US overall. Using bookkeeping services offered by Bokkstime means forgetting about all troubles related to taxes and accounting. Here is what we offer:
- A personal bookkeeper for your business.
- Regular meetings, business counseling.
- Accurate accounting.
- Keep track of all your financial statements.
- Generating financial reports for decision-making.
You can consult with your accountant about what type of accounting is best. All bookkeepers in Bookstime have the required knowledge and skills not only of the laws but also of the software used for accounting.
Rest assured, accountants at Bookstime have the required expertise so that you can focus on developing your business.
