Behind every successful business is a talented entrepreneur; however, he usually needs an accountant help. Bookkeeping allows firms to control finances by minimizing taxes and other mandatory payments. The company that partners with professional bookkeepers also benefits from a wide range of additional services that save capital, reduce risk, comply with legal requirements, manage growth, and plan for important events. In this guide, we’ll discuss what the duties of an accountant are, where to look for a professional and how one may save your company.
Why does a company need accounting?
Accurate bookkeeping makes life easier while paying taxes and gives a complete picture of the organization’s financial situation. Transparent accounting makes your company more attractive to customers. Here are some basic examples of how a proper accountant can help to make your firm more appealing to the target audience:
- Financial stability: if the company’s economy is in order, you clearly understand the volume of revenue and costs. You may also create accurate future forecasts to ensure you have the resources to get through tough times.
- Increased efficiency: responsible bookkeeping offers up-to-date financial data about your company. It helps to decide on the need and timing of additional investments.
- Smart marketing: economic data lets you choose the best time to launch an advertising campaign and evaluate whether your marketing efforts produce the desired results.
Sometimes a small business encounters unplanned downtime, which may create many problems with cash flow, tax collection, and lack of staff and office space. Unmanaged growth can set your company back in development. A specialist will help you quickly and effectively respond to unexpected prospects.
What does a bookkeeper do?
A professional accountant handles all the financial and legal needs of a company. He has the necessary knowledge and access to particular software. Experts keep track of any changes in the fickle legislative world and control their implementation. Their list of duties also includes the following items:
- Preparation of financial reports: specialists track sales volumes, asset sizes, securities, loan obligations, and other aspects of the activity.
- Classification of revenue and spending, complete accounting services.
- Calculation of taxes and control of timeliness of their submission.
- Solving all issues related to payroll, audit, and corporate finance.
- Study of sectoral state documents and assistance in administrative management.
If you cooperate with an accountant, you must decide what tasks you want to delegate to him. You may want to consult with a specialist when you start a business, or you plan to have a professional handle all your financial documents during the tax period to help sort out your dues.
Keeping proper financial records is time-intensive and small mistakes can be costly. BooksTime makes sure your numbers are 100% accurate so you can focus on growing your business.
How does an accountant help firms?
Accountants offer much more than daily business accounting. It would help if you treated them as partners who may advise on any issue related to the smooth functioning and expansion of the company. We have put together several examples of what a professional may do for a small business:
- Starting a business: you will need accountant help to select the best structure (LLC, partnership, etc.) and develop a business plan. The specialist will also set up the correct accounting processes at their launch.
- Providing advice: when firms experience growth or seek success, an excellent bookkeeper advises business managers on cash flow, inventory, and investment management. In the event of a merger or sale of a company, a professional ensures a smoother transition.
- Procedures: the accountant assists organizations in regular processes and is responsible for preparing and analyzing financial statements. Reviewing documents will allow management to make informed decisions based on new data. A bookkeeper may also keep track of payroll and tax payments throughout the year.
- Legal compliance: specialists ensure that business owners do not violate standards. Accountants also assist the company in auditing by providing the auditor with up-to-date information about the firm.
- Establishing links: companies often need to interact with different institutions. Bookkeepers manage relationships and successfully manage the procedures that CPA organizations must follow for various financial institutions.
Accountants help companies prevent mistakes that lead to hefty fines. The specialist will detect minor inaccuracies and significant errors, such as overdrafts to bank accounts or tax violations. Delegating some of the authority to a financial professional will give managers and business owners more time to focus on other aspects of the business.
What skills does a good accountant have?
The qualification of a specialist depends on what you need. The accounting clerk can only have a high school diploma and on-the-job training, an accountant requires a bachelor’s degree, and for a CPA, a prerequisite is a higher education and various certificates. The experts have compiled a few essential skills you may find in most job descriptions.
- Mathematics and financial analytics: this does not mean that accountants have to be mathematical geniuses, but they need to be able to work with numbers.
- Computer talent: the times when accounting operations took place on paper are in the past. Today, bookkeepers interact with advanced program solutions, which means they must be able to handle smart machines.
- Understanding all the nuances of business: an excellent accountant performs calculations and analyzes the results to create an optimal development strategy.
- Communication: a bookkeeper must be able to explain complex financial information so that the owner and staff may understand and use it.
There are no trifles for a skillful accountant. He pays attention to every detail regarding working with your finances; every cent counts. It is important because even a tiny mistake may become a big problem.
Is hiring an accountant necessary for a small business?
If your business is overgrowing, you will need to maintain an entire staff of bookkeepers eventually; however, most startups and small businesses can successfully operate without an in-house accountant, especially at first.
It makes sense to refer your financial matters to an accounting firm or professional accountant. Outsourcing means you do not have to train a full-time employee or equip a workplace. It reduces the company’s costs in many ways; you will not need to buy software to solve economic problems.
Where can you find a professional bookkeeper?
Your business will develop more efficiently if accounting functions fall on the shoulders of professionals. But where to find an accountant you can trust?
Before looking, you need to sort out your wishes: do you want to find a local firm to organize face-to-face meetings, or are you satisfied with an organization that will do all the work online?
When you decide what accountant help you need, you can start looking for a specialist:
- Ask colleagues and other companies in your industry how they keep their books.
- Place an ad on the Internet or in relevant magazines, specifying the qualification level and other requirements.
- Use the social network LinkedIn and evaluate the offers that reach you.
- Speak with government and business alliances. They often have a register of experienced and trusted accountants.
When the list of applicants is formed, choose the one who fully meets the needs of your company and work style. You will need basic services if your firm is a small business or a startup. It is not necessary to hire an expensive organization that serves corporations around the world.
Your accountant may advise you on all significant financial matters: auditing, accounting, business strategy, tax payment, etc. Whether you need to set up software or prepare for month-end reconciliations, you must have complete trust in your bookkeeper to know precisely how you and your business can succeed. Turning to professionals for help, you can improve your business at every stage.
Author: Charles Lutwidge