Thursday, May 16, 2013
Why Every Business Should Have A Good Accountant
By Nick Flynn
Accounting is a scheme of computing and summarizing business actions, translating financial data and explaining the results of that information to the management and stakeholders to help them come up with better decisions regarding the business.
A business can probably survive, for a while at least, with a poorly designed marketing strategy and poor human resource management. However, it's a flying pig to run a company or make smart investment choices without timely and accurate financial information.
Luckily, there are experts who can prepare, summarise, interpret, analyse and communicate this vital information - accountants. Together with outstanding management, professional accountants are essential to the success of a business.
What are the Functions of Accountants to Your Business?
The primary functions of a business accountant are divided into 4 main sectors:
1. Record-Keeping Function - this accountant's role involves the creation of financial records business transactions and systematically recording financial transactions (journalising, posting and preparing financial statements). These financial statements are done in order to report regularly to the interested parties.
Business Property Protection - the next accountant's role is to protect your company's properties from unfair and unwanted use. He thus has to analyse the financial flows of the firm and design an accounting system that can protect the company's assets from unjustified and unnecessary use.
3. Legal Requirement Function - it is also a function of a business accountant to device such a system to meet the legal requirements. It is under the law's provision that a business owner has to file several tax statements such as returns for sales tax purpose, income tax returns, etc. By using an accounting system that abides the requirements of law, these tax statements can be determined.
Communicating the Results - accounting, considered as the language of business, communicates several transactions. Aside from owners and employees, there are also various external parties who need the financial results of a company. They are the creditors, tax authorities, etc. The accountant's job is to analyse and asses the firm's financial position of the firm at a particular time based on the financial information gathered. Then, he communicates his interpretation of the financial data for the individuals or organisations that need the data.
What are the Advantages of Hiring an Accountant for Your Business?
Aside from marketing and business management, finding the right accountant can be the most vital ingredient for your business's success because he can create a big impact. Below are the advantages of hiring the right accountant:
Convenience - there are accountants almost everywhere. Choose an accountant near you to save time and money. Or, you can also ask your accountant to work virtually - through emails, fax or phone. You can also save time and money if your accountant accepts paper works through email.
2. Cost-cutting - look for an accountant who can give you discount. This way, you can save money for your businesses' other expenditures.
Accuracy - good accountants are always precise in their work. He will prepare and check your accounting works including your balance sheet, income statement and other financial statements before you submit your tax return.
4. Business Development - your accountant can give you pieces of advice on how you can develop your business through his analysis of your financial position. He can also recommend an effective marketing strategy, human resource management, etc.
5. Reliability - this advantage is probably the best you can get when you hire a good accountant. You can trust him to know the best ways to optimise your resources whatever kind of business you run.
For a business to be successful, there are important things to consider - successful marketing strategy, effective management and a good accountant.
A business can probably survive, for a while at least, with a poorly designed marketing strategy and poor human resource management. However, it's a flying pig to run a company or make smart investment choices without timely and accurate financial information.
Luckily, there are experts who can prepare, summarise, interpret, analyse and communicate this vital information - accountants. Together with outstanding management, professional accountants are essential to the success of a business.
What are the Functions of Accountants to Your Business?
The primary functions of a business accountant are divided into 4 main sectors:
1. Record-Keeping Function - this accountant's role involves the creation of financial records business transactions and systematically recording financial transactions (journalising, posting and preparing financial statements). These financial statements are done in order to report regularly to the interested parties.
Business Property Protection - the next accountant's role is to protect your company's properties from unfair and unwanted use. He thus has to analyse the financial flows of the firm and design an accounting system that can protect the company's assets from unjustified and unnecessary use.
3. Legal Requirement Function - it is also a function of a business accountant to device such a system to meet the legal requirements. It is under the law's provision that a business owner has to file several tax statements such as returns for sales tax purpose, income tax returns, etc. By using an accounting system that abides the requirements of law, these tax statements can be determined.
Communicating the Results - accounting, considered as the language of business, communicates several transactions. Aside from owners and employees, there are also various external parties who need the financial results of a company. They are the creditors, tax authorities, etc. The accountant's job is to analyse and asses the firm's financial position of the firm at a particular time based on the financial information gathered. Then, he communicates his interpretation of the financial data for the individuals or organisations that need the data.
What are the Advantages of Hiring an Accountant for Your Business?
Aside from marketing and business management, finding the right accountant can be the most vital ingredient for your business's success because he can create a big impact. Below are the advantages of hiring the right accountant:
Convenience - there are accountants almost everywhere. Choose an accountant near you to save time and money. Or, you can also ask your accountant to work virtually - through emails, fax or phone. You can also save time and money if your accountant accepts paper works through email.
2. Cost-cutting - look for an accountant who can give you discount. This way, you can save money for your businesses' other expenditures.
Accuracy - good accountants are always precise in their work. He will prepare and check your accounting works including your balance sheet, income statement and other financial statements before you submit your tax return.
4. Business Development - your accountant can give you pieces of advice on how you can develop your business through his analysis of your financial position. He can also recommend an effective marketing strategy, human resource management, etc.
5. Reliability - this advantage is probably the best you can get when you hire a good accountant. You can trust him to know the best ways to optimise your resources whatever kind of business you run.
For a business to be successful, there are important things to consider - successful marketing strategy, effective management and a good accountant.
About the Author:
Can't find a reliable and cost effective accounting service for corporations in Western Australia? Visit Baggetta's website at www.tax-accounting-perth.com.au.
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