Accounting Services for Small Business: Bringing Solutions to 7 Common Accounting Challenges

Michael Pignatelli
Jan 08, 2022

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Accounting can be daunting for a small business owner. However, ignoring this aspect of your business can lead to long-term problems. 

Fortunately, small business accounting services are available to help you manage your business finances. This blog post will look at seven common accounting issues small businesses face. We will also explore how professional accounting and bookkeeping firms address them. 

Ready to get your business finances in order? Keep reading!

1. Differentiating bookkeeping and accounting

Most business owners think accounting and bookkeeping are the same. So, they hire either a bookkeeper or an accountant only. 

But the thing is, accounting and bookkeeping are two separate services you need for your business.


Know that a bookkeeper’s tasks are to track all the money coming in and out of your business and to keep all documents and data organized. 

Meanwhile, an accountant takes on the reporter role. They ensure that you understand all the data by making meaningful financial reports. 

Hence, you should have both tasks covered to understand your business finances. You can get these from the best accounting services for a small business.

2. Spending a huge amount of time on manual work

Despite the advanced technology and the luxury of accounting software choices, many small business owners still go for manual data entry, document filing, and payment acquisition. They do these out of a desire to save money or unfamiliarity with software use. 

Aside from longer time consumption, inaccuracy and human error are high for this method. 


It is still best to automate everything by using accounting software. The extra payment you make each month is a worthy investment; your data is safe, and you can generate reports in just a few clicks. 

If you are unfamiliar with software technicalities, this is another service you’ll get from a small business accounting services firm. 

3. Incomplete data and documents

This challenge becomes more evident when tax season nears. During this time, business owners rush to collate all documents and receipts for the tax year and input the details manually. Lost or misplaced documents are also a common problem because of their failure to enter data immediately.


Many applications have an optical character recognition feature that allows you to take a picture of receipts and documents and convert them into text. They then input the transaction in your books and categorize them accordingly. 

The best accounting company for a small business maximizes these tools to save time and keep documents safe. All your business records are safe with them because they store them in real-time. 

accounting and tax services for small business

4. Missing bill due dates and late payment of sales

As you scale your business, the orders and sales will grow day by day. They can be challenging to track, and as a result, you may miss making or collecting payments on time. 

Missed bill payments incur additional fees. Meanwhile, the inability to collect sales payments will halt your business growth or expansion plans.


Different accounting applications like QuickBooks and Xero add a “Pay now” button to the invoices they generate to allow your clients to pay conveniently. The payment goes straight to your bank and is recorded in your books. 

As for bills payment, you can schedule a payment in the software and just approve the payment request before the system sends the money out. 

5. Inability to manage cash flow

As a small business owner, you have to keep up with many tasks to keep your new business afloat. The challenge begins when you do not keep an eye on your cash flow. 

Cash flow is the money coming in and going out of your business. Without cash flow visibility, you won’t know where your money is going and how much sales you are making. 


Set up your cash flow the moment you launch your business. Religiously track the money you get from sales, interests, royalties, and other sources of income. Of course, do not forget to monitor all expenses. 

With an accounting partner dedicated to doing this for you, you can focus on your business operations. 

6. Failure to generate accurate and timely payroll

Small businesses often begin with a few team members. Thus, many owners choose to compute and pay salaries manually.

The difficulty arises when business booms. A manual payroll system won’t cut it then, and income tax compliance will become more challenging.


Make your payroll process compliant, seamless, and automated through the help of software and professional services. 

For instance, you can integrate Gusto Payroll services into your Xero accounting software. Gusto Payroll offers convenient salary computation, tax deduction, and salary payout. 

7. Lack of knowledge on taxes

Taxes are difficult to understand. As a business owner, you need to be familiar with sales tax, income tax, corporate tax, and even value-added tax. It gets even more complicated as they vary per jurisdiction; not understanding them can be a costly mistake. 


Understand the basics first. 

Sales taxes are charged for every sale you make. The charge varies depending on the laws of your area and the area you are delivering to. Meanwhile, you and your employees have to pay income tax.

This task will be smoother with accounting and tax services for a small business. They will make sure you are always ready for tax season. 

Accounting Services for Small Business by Unloop

Accounting and bookkeeping for your small business can be overwhelming, especially when you’re facing the seven accounting challenges we discussed above. 

If you’re thinking of hiring an accountant now, make sure they have experience in dealing with small businesses like yours.

Partner with us here at Unloop! Just like you, we began as a small business. We’ve been through the challenges you are going through. Give us a call at 877-421-7270 to learn about our accounting services for a small business. We’d love to discuss our services with you!

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228 Park Ave S #82849
New York, NY 10003
United States
7676 Woodbine Ave #2
Markham, ON L3R 2N2
About unloop

Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting.. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.