Biggest accounting challenges small businesses ?

Posted by myaccountsconsultant on January 10th, 2017

Since small business owners manage each and everything in their business, they have a lot on their kitty. Each day you will find them dealing with customer satisfaction issues, inventory issues, financial issues, human resources issues, marketing issues and much more. But amongst all these, it is the financial issues that can affect the business the most.

For example, for the small scale business owner, the cash flow, or more specifically, the working capital is quite low. So, any purchases that they need to make, has to be adjusted from the current cash available. Which is why, most of the small scale business owners constantly find themselves wrestling with a situation of cash crunch.  Or if they need to manage payroll, business owners struggle with the calculation of the amount of salary and wages to be given to the employees and what are the amounts that needs to be cut for taxes and benefits?

As we have seen that most of the issues that are faced by the small business owner is in the field of accounts. If we look at it objectively, the challenges that are faced are the same as any large scale corporation, it is only the lack of resources that makes the small scale owner think twice about investing in an accounting outsourcing provider. If we look at the recent survey from the small business accounting, less than half of the small businesses invest in an accountant. This percentage decreases with the decrease in the number of employees. Not all business owners would have the capacity to understand finance, and even those who have studied finance, would not have time to exclusively devote to it daily.

So, why exactly do entrepreneurs not invest in accounting for small businesses? In another report that was conducted by Wasp Barcode Technologies, it was found that most small scale business owners face challenges in taxing, personnel management and managing the books of accounts. If we look at it more specifically, the challenges in accounting are faced in payroll, accounts receivable and payables, managing the books of accounts, and managing and ensuring proper cash flow.

In order to avoid this, most small business owners now choose to outsource their accounts to firms like My Accounts Consultant that provides end to end accounting services that is specially designed after an in depth survey of the needs and the requirements of small scale businesses across geographies and industries.

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