Technical Reading Ii - Accounting 510

Faculty of Accounting English III – Group 510 – Technical reading II Name: _______________________________

Code: __________ Date ______________

Hiring an Accounting Pro Unless you are a numbers wiz or have a degree in accounting, you will need to employee the services of a professional to set up your accounting system. To get a grasp on your small business accounting and financials, should you hire a bookkeeper or an accountant? Each start up situation is unique but generally most start ups can begin with bookkeeper. A bookkeeper's services make sense for average start-ups with no plans on building an empire. The bookkeeper will help you start off with a good record keeping system, handle financial transactions, and produce financial statements. Hiring an accountant makes sense for growing companies, businesses with more complex business structures (such as limited liability companies) and when you add additional employees to your company. Initially, you may start your business part-time or at home to keep expenses low. The cost of an accountant on a monthly basis can be too much for a one-person business. Either prepare the books yourself or have a bookkeeper involved in the process. Use the accountant for your yearend tax planning. When you do plan to hire an accountant or bookkeeper, remember to find one you can trust and build a solid relationship with because you need their advice and guidance in steering your business now and in the future.

Vocabulary: Payroll: Nomina Net pay: Salario neto Management Accounting: Contabilidad gerencial Invoice: Factura Accounting system: Sistema Contable Account number: Numero de cuenta Revenue: Ingreso, renta Equity: Patrimonio Neto Liability: Pasivo Endorse: Endosar