Small Business Accounting – A Brief Insight

  What is Small Business Accounting? Accounting Information adopts different methods giving rise to Small Business Accounting. It is basically the art and science of maintaining proper and precise accounts of a concern that have employees ranging in numbers from 10 to 249(limit varies from country to country). This form of accounts uses the same book keeping methods buts has a different approach towards Creditors and Cash Flow since smaller businesses require speedy credit collection and constant cash flow. It has gained prominence in most developing countries like India due to the emergence of Small Businesses. Why is Small Business Accounting needed? Small Business Enterprises like most other enterprises have a number of transactions taking place per day of business. If these transactions are not recorded systematically it would be impossible to ascertain the profitability or financial position of the firm. A business must also publish and declare it’s accounts to various parties lik