Small business has its own charm and attractiveness. The accountants have some benefits of managing the accounts of a small business, but they have to face the real challenges as well. A small business has invoice with immaterial amounts, but the excess of invoices makes it material for a small business accountant in Calgary. Most of the small businesses are owned by a single person, a family or a group of friends partnering the venture. They have invested a fair portion of the capital and are entitled to their share in profit and loss according to an agreement.
Such businesses have little to follow in rules and regulations, that’s why making the accounts does not involve complex concepts. The small business accountant in Calgary is required to record all the transactions of sales and purchases in a day book, and then give it a proper accounting format. They have to deal with owners requirements and prepare financial statements the way they want.
Basic concepts of business and accounts
Accounting standards vary from state to state, that’s why the accountants are obliged to follow in a territory they are working in, but for a small business accountant in Calgary, understanding of the basic concepts is more than enough. They neither have to worry about consolidated accounts nor complex business theories. All they have to do is recording of sale, sales return, purchase, purchase return and cash received and payment. Sole proprietors are very lenient in financial reporting, because they are the managers and they are the owners, whereas partnership and association of persons are following their agreements. The small business accountant in Calgary must prepare reports in a presentable manner that are acceptable to all parties.
Highlighting a potential risk
A small-size business has a few employees to run the production cycle and sales, which make it hard to apply the concept of “segregation of duties.” In such a situation, the importance of a Small business accountant Calgary feels a lot to point out the areas where there can be a mistake, fraud or misrepresentation. The owners, who pay less attention to the accounting and bookkeeping of their business, are also less educated about the process. They can’t figure out a mistake, omission or commission by their employees. The professional Certified Public Accountants (CPA) firms are capable of doing so because they have hands on experience in accounting and are sincere with their profession.
CPA firms are managed by certified and experienced accountants, who have burnt mid night oil on passing the professional exams and spend a required time period with industry specialists. A small business accountant in Calgary from one of the prestigious organizations can prove an asset for your small size enterprise.