Small business Accounting is an
enterprise that is usually small in scale in terms of number of employees
and/or sales revenues. A large number of the businesses in the United State are
small business and medium. These businesses are usually registered as sole
proprietor, meaning one individual owns it, or partnership, meaning 2 or more
people owns the business.
One of the problems facing a small
business is in terms of accounting and how to manage it. With the limitation in
their funds, some accounting is done by the business owner. The entrepreneur is
tasked to run the business and at the same time handles the day-to-day
accounting requirements of the company. Because of this, the company is often
penalized by the government for late payment of taxes, late submission of tax
documents and at times, non-submission of tax forms. Also, the business can
also be penalized for erroneous computations of tax dues. The business owner
has his/her hands full with running the business that handling the accounting
requirements can be turned over to another person. So business Accounting is
very important for a small business.