While we've covered the fundamentals of accounting services, there are numerous tangential aspects and complexities within accounting. Let's delve into some of the most prevalent ones:
Most small businesses adopt cash-based accounting, yet the IRS code has undergone changes allowing more taxpayers to opt for accrual-based accounting. If your requirements necessitate accrual-based accounting (e.g., better tax positioning in the near future, franchisor or investor demands), this adds additional time to the accounting service.
Typically uncommon in service-oriented businesses, some professions like dentists, eye doctors, and veterinarians may have a retail aspect in their practice, thereby incurring sales tax obligations. The frequency of such taxes can vary from monthly to annually based on business volume.
Note: Rachelle Harp CPA, PLLC does not offer sales tax services for online retailers such as Amazon merchants or FBA merchants, as this is a complex area better handled by specialized platforms like taxjar.com.
Many counties impose taxes not only on real estate but also on the personal property used in businesses, like equipment and furnishings, distinct from real estate property.
Maintaining inventory introduces complexity to accounting services. Factors such as the frequency of inventory counts, valuation methods (e.g., FIFO, LIFO, weighted average cost), and cost determination (e.g., market value, original purchase price) contribute to accounting intricacies.
Different industries come with their unique intricacies. For instance, construction often involves job costing and expense allocation, retail sees cash and inventory issues, and attorneys deal with trust accounts and specific 1099 requirements.
Various operational software claim compatibility with QuickBooks, but these integrations can sometimes create discrepancies. Careful monitoring is essential to avoid errors, especially in recognizing phantom revenue.
Franchises can vary significantly in terms of reporting obligations, accounting methods, and financial statement requirements. Compliance may dictate specific reporting and transactional processes.
Managing complex benefits like 401k plans, disability, and insurance during payroll entry adds time and intricacy to accounting processes, particularly reconciling payables tied to these benefits.
