Small Businesses, Good for Everyone
The United States Small Business Administration (SBA) defines a small business as having these basic elements: is a profit endeavor; is based in the U.S.; is independently owned and operated; is not nationally dominant in its market industry; could be a sole proprietorship, partnership, corporation, or other similar structure. Small businesses are a positive influence on the economy; and in addition to being lucrative entrepreneuring enterprises, they are also healthy for the social environment.
There are several advantages to having a small business. Small businesses are versatile. They can be started with limited resources and relatively low expenses depending on the services being offered. There are business owners, for example, that originally set up shop in their own homes and used informal resources already available to them. Consider a home-made jam business, food catering service or baking business for example. These businesses can be relatively successful operating from their own homes. Only after the businesses have grown and expanded do they then acquire official business locations along with associated costs and expenses. The versatility of small businesses is what makes this kind of start-up possible.
Small businesses can do relatively well serving industry niches. A small business that offers niche products or services does not have to compete with larger businesses with more generic products and services. Niche marketing allows small businesses to target very concentrated areas of the market that are otherwise overlooked. Focusing on these small areas with specific needs can attract loyal patronage that may be enough to feed a small business.
Because of their smaller sizes, small businesses respond to the nuances in the marketplace with greater flexibility. Big businesses have to employ large measures to make adjustments to market changes, because of the sheer size of their assets and investments and their more entrenched bureaucratic policies. Small businesses have greater freedom when it comes to making adjustments.
Small businesses are also good for the communities they operate in. They tend to keep money inside a community as opposed to large business chains, which tend to shift money away from community. Small businesses utilize and depend upon resources that are immediately available to them in their own communities, thus patronizing other small businesses and benefitting the local community. Local businesses are also likely to produce products and services that are in high demand in a specific community, thus serving the community’s real needs. Small businesses maintain diversity and individuality and they are more likely to support local arts, events, and community initiatives. All of these small business attributes are what make small businesses contribute to the health of a community.
If you already own a small business, you already know how complicated it can get trying to keep your financial world together. A small business accountant can take care of all your business accounting needs. From making budgets, to formalizing a system of invoicing, tracking debts and payments, analyzing the financial health of your business and planning steps for financial growth, a small business accountant can help keep the engine of your business running smoothly. By making smart decisions and keeping a keen eye on your market, you may reap the best in all that a small business can offer.
PASBA member accountants bring the collective resources of a nationwide network of Certified Public Accountants, Public Accountants, Enrolled Agents and other practitioners available to answer your tax and financial questions and streamline your business accounting, bookkeeping, and payroll operations. To find a trusted accountant in your area, visit www.SmallBizAccountants.com.
Please be advised that, based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice. Any information contained in this article does not fall under the guidelines of IRS Circular 230.
Copyright Information 2011 Professional Association of Small Business Accountants