Small Business Accounting Questions and Resources

by Herb on June 5, 2012

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Cash Versus Accrual, Best Accounting Software, How to Interview an Accountant and More

Small Business Questions

One of the great things about setting up a LinkedIn group is that you get lots of great questions AND… lots of great fodder for blogs!  In our Arkansas Veteran LinkedIn Group one member, after sitting through a cash flow webinar, asked some basic questions about cash versus accrual accounting, what software I would recommend and what to look for in a small business accountant.  So…assuming that if one person asks the question others are wondering the same thing, I decided to pull the data together and just roll into an information blog post.  And … here you go.ASU Small Business and Technology Development Center
By Herb Lawrence, Arkansas State University Small Business and Technology Development Center… Answering Small Business Questions from the Delta To the Ozarks.

 

Finally after a long hiatus I have an opportunity to bring back the ASU Small Business Answer Ape!  And thanks to some very good questions about accounting issues from one of our small business friends am able to unleash him back on an unsuspecting public.

After sitting in on a recent Arkansas Veteran Webinar on Cash Flow, the questions were:

  • What is the best choice for a small business Accrual or Cash Accounting,
  • What is the “BEST” accounting software for a small business, and
  • What should a small business owner look for when choosing an accountant.

All very good questions and…here are the answers provided by some of the best sites on the internet in our Storify article.


Accounting Questions Answered from the ASBTDC

In our LinkedIn Group for Arkansas Veterans I had a question from one Vet about the difference in Cash and Accrual Accounting and the BEST accounting software packets. Figured if one person asked the question several others might be wondering the same thing so here are some articles to help.

Storified by Herb Lawrence · Mon, Jun 04 2012 10:59:13

WordPress
Two easy to understand articles about the difference between Cash and Accrual Accounting AND… when one is more appropriate than another.  Please note I am not an accountant and this is NOT accounting advise from me.  Instead these two articles will help you see the difference between the two AND when the writers suggest one is better than the other.  In all cases before making a decision you should discus this with your accountant who knows your exact needs.  Check out the Nolo article and the Accounting for Dummies segment below.
Cash vs. Accrual Accounting | Nolo.comThe cash method and the accrual method (sometimes called cash basis and accrual basis) are the two principal methods of keeping track of …
Deciding between Cash-Basis and Accrual Accounting – For DummiesBefore you can start recording business transactions, you must decide whether to use cash-basis or accrual accounting. The crucial differ…
Another question that was asked was what is the BEST accounting software to use?  Although we “like” Quickbooks pro as a good choice for many of our small business clients the actual software you choose may differ depending on the type of business you have, inventory management issues, whether your accountant is familiar with that particular software or not and of course ease of use by the small business.   
Three good articles I pulled that may help sort out which software is right for you are shown below.  The first:  Accounting Software Review 2012 is a neutral site that tries to rank the best software in terms of price, functionality, ease of use, etc.  Start with it to see what the top 10 suggestions are.  Then the Business News Daily and the Small Business Computing give some good more detailed insights into some of the more popular brands.
Accounting Software Review 2012 | Best Bookkeeping Software | Small Business Accounting Software – TopTenREVIEWSLike most small business owners, you are likely excited about your product or service and enjoy working with your customers. However, whe…
The Best Accounting SoftwareSmall business owners know that running a successful operation requires keeping things organized and knowing where every penny goes. Many…
5 Best Open Source Accounting Software for Small BusinessThere are dozens of excellent open source accounting software options for everything from simple basic ledger bookkeeping to invoicing, i…
Integrating a computerized software program for your accounting system will be a great management tool for your business but several questions you should ask yourself include: 
1) what do I want the software to do?  
2) Will it generate financial statements in house that I can use without having to go to my accountant? 
3) Is my accountant familiar with this software?  
4) Can my accountant help me set it up?  
#4 is very important in considering the right software to use since you will want to share the data with the accountant to use for your tax preparation and the accountant can help you set up the “Chart of Accounts” in a way that will work best for you and for the accountant.
Speaking of accountants… if you haven’t chosen an accountant yet here are some tips from Biz Journals with suggestions on how to find the RIGHT ACCOUNTANT for your small business needs.  Hint:  Interview potential accounting firms and make sure you have the RIGHT FIT for your business needs.  
How to choose the right accountant for your business – Buffalo …Apr 13, 2012 … A company's finances are its lifeblood, so it's important to find a financial professional who can help busine…
Was this information helpful?  If so please let us know!  Do you like this format for answers to questions?  If you have other questions just keep shooting them to us!  Thanks

Veterans will be able to join the Arkansas Small Business and Technology Development Center staff for our ongoing series of free small business webinars.

Coming up tomorrow, June 5th 2-3 pm CST Small Business Taxes followed by Marketing with Social Media on Tuesday, June 19th 2-3 pm CST.
To see the entire list and to register go to Arkansas Veteran Webinar Series and grab your seat today!



Tagged as: Arkansas small business, small business

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