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.
Your business can likely survive, for at least a while, with a poorly developed marketing strategy, weak human resource management and with no effective financial plan. However, it is impossible to run a business or make smart investment decisions without timely and precise financial data.
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.
The Functions of Business Accountants
The role of a business accountant is divided into four main functions:
Record-keeping Function - the first function of an accountant is to create the financial records of your business and systematic financial transactions (journalizing, posting and preparing financial statements). The purpose of these financial statements is to update the individuals who need the information.
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.
Legal Requirement Function - another function of a business accountant is to device an accounting system that meets the legal requirements. It is under the provision of a law that a business owner has to file various tax statements such as returns for sales tax purpose, income tax returns, etc. These tax statements can only be determined by using an accounting system that meets the legal requirements.
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.
Advantages of Hiring an Accountant for Your Business
Finding the right accountant, apart from marketing and business management, can be the most vital part of your business's success because he can make a great difference. Below are the benefits of choosing the right accountant:
1. Convenience - you can find a lot of accountants in your locality. Select an accountant near you so that you can save money. On the other hand, you can also hire an accountant who is willing to work online - through emails, phone or fax. This will allow you to save more money and time if your accountant accepts paper works online.
2. Cost-cutting - look for an accountant who can give you discount. This way, you can save money for your businesses' other expenditures.
3. Accuracy - professional accountants are precise in their work. Your accountant prepares and checks your accounting statements such as balance sheet, income statement and other financial statements before you submit your tax returns.
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 is probably the best advantage you can get when you choose 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.
Your business can likely survive, for at least a while, with a poorly developed marketing strategy, weak human resource management and with no effective financial plan. However, it is impossible to run a business or make smart investment decisions without timely and precise financial data.
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.
The Functions of Business Accountants
The role of a business accountant is divided into four main functions:
Record-keeping Function - the first function of an accountant is to create the financial records of your business and systematic financial transactions (journalizing, posting and preparing financial statements). The purpose of these financial statements is to update the individuals who need the information.
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.
Legal Requirement Function - another function of a business accountant is to device an accounting system that meets the legal requirements. It is under the provision of a law that a business owner has to file various tax statements such as returns for sales tax purpose, income tax returns, etc. These tax statements can only be determined by using an accounting system that meets the legal requirements.
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.
Advantages of Hiring an Accountant for Your Business
Finding the right accountant, apart from marketing and business management, can be the most vital part of your business's success because he can make a great difference. Below are the benefits of choosing the right accountant:
1. Convenience - you can find a lot of accountants in your locality. Select an accountant near you so that you can save money. On the other hand, you can also hire an accountant who is willing to work online - through emails, phone or fax. This will allow you to save more money and time if your accountant accepts paper works online.
2. Cost-cutting - look for an accountant who can give you discount. This way, you can save money for your businesses' other expenditures.
3. Accuracy - professional accountants are precise in their work. Your accountant prepares and checks your accounting statements such as balance sheet, income statement and other financial statements before you submit your tax returns.
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 is probably the best advantage you can get when you choose 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:
If you are not sure if your accountant is the right fit for your business needs, contact Baggetta & Co or visit www.tax-accounting-perth.com.au.
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