Solid accounting turns daily transactions into clear decisions. This guide shows owners and managers how to set up a reliable system, keep books clean year-round, and use financials to grow. At Henriquez Accounting & Tax Services, we support businesses across Tampa Bay—Zephyrhills, Wesley Chapel, Brandon, Lakeland, St. Petersburg, and beyond. For hands-on help, explore Accounting & Bookkeeping, Outsourced Controller / CFO, Tax Preparation, Payroll Services, and Florida Sales Tax.

IRS Small Business & Self-Employed Tax Center: https://www.irs.gov/businesses/small-businesses-self-employed

U.S. Small Business Administration Accounting Resources: https://www.sba.gov/business-guide/manage-your-business/finances-accounting

FASB Accounting Standards: https://www.fasb.org

Florida Department of Revenue – Business Taxes: https://floridarevenue.com/taxes/Pages/default.aspx

Accounting vs. Bookkeeping (What’s the Difference?)

Bookkeeping: records transactions, categorizes expenses, reconciles bank/credit cards, manages A/R and A/P. See our Bookkeeping services.
Accounting: interprets the numbers—financial statements, KPIs, budgeting, tax planning, and strategy. Consider our Controller/CFO support.

Fast Setup Checklist

Choose software (QuickBooks Online/Enterprise) and enable bank feeds.
Create a chart of accounts that matches your industry.
Open business-only banking and card accounts; avoid mixing personal spending.
Turn on document management (receipt capture, vendor W-9s, contracts).
Build a monthly close checklist (reconciliations, review uncategorized, tie out loans).
Back up and restrict access with roles/permissions.

Sample Chart of Accounts (Contractors & Retail)

Income: Labor, Materials, Service Plans, Change Orders, Online Sales
COGS: Subcontractors, Direct Materials, Freight, Merchant Fees
Expenses: Fuel/Vehicle, Small Tools, Advertising, Insurance, Rent, Utilities, Software, Payroll Taxes
Other: Owner Draw/Distributions, Owner Payroll (if S-Corp), Depreciation, Interest

Cash vs. Accrual (Which Should You Use?)

Cash recognizes income/expenses when money moves; simpler and common for small service businesses. Accrual matches revenue and costs to the period earned/incurred—better for inventory, progress billing, or when you need precise margins and WIP. We help you evaluate which method best fits taxes, financing, and management reporting. Start with a consult via Tax Preparation or Accounting & Bookkeeping.

Monthly Close: What “Clean Books” Look Like

Bank/credit cards reconciled to statements; petty cash and loans tied out.
Open invoices reviewed; past-due follow-ups sent; unapplied payments cleared.
Inventory/WIP updated; job costs allocated correctly.
Sales tax filings prepared (see Florida Sales Tax); payroll and 941/940 liabilities matched.
Reports: P&L, Balance Sheet, Cash Flow, A/R Aging, A/P Aging, and key KPIs.

Payroll, Sales Tax & Compliance

Payroll: set pay schedules, collect W-4/I-9, remit taxes, file quarterlies; we can manage this under Payroll Services.
Sales/Use Tax: register if required, track taxable vs. exempt sales, file on time, maintain certificates—we handle filings.
1099s: collect W-9s early; file 1099-NEC/1096 in January.

Year-End & Tax Strategy

Reconcile all accounts; verify asset lists; record depreciation.
Consider Section 179/bonus depreciation when appropriate.
Max retirement contributions (SEP-IRA, Solo 401(k)) and review S-Corp reasonable compensation.
Run a pre-filing tax projection to avoid surprises and adjust estimated payments—book via Tax Preparation.

KPIs to Watch

Gross Margin = (Revenue − COGS) / Revenue
Operating Margin = Operating Income / Revenue
Cash Conversion Cycle = DSO + DIO − DPO
Break-Even Sales = Fixed Costs / Contribution Margin

Need clean books—and a plan?

We set up systems, catch up months of transactions, and deliver tax-ready financials. Get a tailored plan for your industry and growth goals. If you’re dealing with notices, we can also help via IRS Representation.

FAQs

Do I need an accountant if I already use QuickBooks?

Yes—software records data; an accountant ensures accuracy, optimizes taxes, and turns data into strategy. Explore our Accounting & Bookkeeping and Controller/CFO options.

How often should I reconcile my accounts?

Monthly at minimum. Many clients reconcile weekly to keep cash flow and margins accurate—this pairs well with Payroll Services and sales tax filing.

When should I switch from sole prop/LLC to an S-Corp?

When profits are consistent and above certain thresholds. We analyze your numbers and reasonable compensation before recommending a change—start with a tax strategy consult.

Can you clean up last year’s books?

Absolutely. We handle multi-month catch-ups, correct misclassifications, and prepare audit-ready schedules—see Bookkeeping cleanup.

The Essential Guide to Small Business Accounting