New York SBDC Research Network

Excerpt from an article by Brian Eckert To read more, visit  Bplans A certified, professional accountant can be a valuable partner to a small business at all stages, from formation, to financials, to the sale of the business. Handling your own accounting might seem like a money-saving strategy, but it may not be the best use of your time. Aside from that, do-it-yourself accounting can sometimes result in expensive mistakes. Paying a professional can have benefits that far outweigh the added costs. But if an accountant makes an error or gives advice that has financial consequences for your business, it can create the sort of setback you were hoping to avoid by hiring a pro in the first place. As the business owner, you may incur liabilities or suffer losses that stem from an accountant’s negligence. If this happens, you may be able to hold the accountant legally responsible for financial losses that their actions (or failure to take action) result in. Suing isn’t always the f

From Bplans : According to a study undertaken by the Small Business Administration, 28 percent of companies go bankrupt due to problems with the financial structure of the company. Many of these problems could be avoided by following good accounting practices. Keeping a record of your financial details IS important to the livelihood of your business. Not only will the correct documents make it easy to file taxes, obtain new loans, and pitch investors, but they will also give you insight into the day to day health of your business, allowing you to make better decisions for the future. The infographic will guide you through the essential documents you need, including helpful tips on finding an accountant for your small business.

Thanks to the huge range of accounting applications available for today’s small and medium-sized businesses, it’s easier than ever to keep an accurate record of where your business’s money is going. While accounting software has made bookkeeping and accounting easier for small businesses, it’s also made errors and accounting mistakes—from incorrectly categorizing a transaction to doing all accounting yourself—much more common. Some accounting mistakes are minor, insignificant, and—when they’re inevitably noticed by someone within your business—easy to correct. But others are more serious and could have a significant effect on your business’s financial health. Over time, poor accounting practices can distort the reality of your company’s fiscal health. In severe cases, repeated accounting mistakes and bad accounting practices can lead your business toward insolvency or company administration. Read more from BPlans.com

Here’s what you know: your accountant can do your taxes. But here’s what you might not know: your accountant can also help you accomplish your business goals. Accountants build up both financial and business acumen throughout their careers, and they’re often willing to share their knowledge with clients. Read more at BPlans.com .

Thursday, December 15, from 1 p.m. to 2 p.m., EST WASHINGTON – With the end of the 2011 tax year right around the corner, small business owners can help prepare themselves for the upcoming filing season by clicking in to the U.S. Small Business Administration’s free December web chat for tips on potential year-end tax savings. Chat participants can get valuable information on how to prepare now with useful tax savings tips and a set of red flags on mistakes to avoid. WHO: Edward S. Karl, CPA, vice president of taxation for the American Institute of Certified Public Accountants, will host SBA’s free December web chat on “Tax Essentials for Small Business Owners.” Karl will answer questions about tax deductions and credits business owners can use to reduce their tax payments, as well as other tax-saving tips. WHAT: SBA’s web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful en

I had intended to highlight books some of the newer books we have in the library and this is one very practical one. This list does not list all the subsections for all the chapters - I have listed only the sections from the chapter on essential recordkeeping for small businesses. Keeping the Books: Basic Recordkeeping and Accounting for the Successful Small Business 6th ed.(2004) by Linda Pinson Chapters Recordkeeping Basics Income and Expenses Cash Accounting Versus Accrual Accounting Essential General Records for Small Business Single and Double Entry Systems Chart of Accounts Debits and Credits An Overview of Four Accounting Tasks Using QuickBooks Pro® Summary: Accounting Software Revenue & Expense Journal Petty Cash Record Inventory Record Fixed Assets Log Accounts Receivable Accounts Payable Payroll Records