The system for communicating and summarizing business activities, translating financial information and explaining the result data to management and stakeholders to help them come up with smart decisions regarding the business is called accounting.
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.
The good news is, there are professionals who can prepare, summarise, interpret, analyse and communicate this important financial information. They are accountants. Expert accountants, together with brilliant managers, are essential elements of a successful business.
What are the Functions of Accountants to Your Business?
The role of a business accountant is divided into four main functions:
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?
Separate 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:
1. Convenience - there are numerous accountants in every community. Hire an accountant living near you to save time and money. Or, you can ask an accountant to work for you online - through emails, phone or fax. This will make you save money and time if your accountant accepts paper works through emails.
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 - expert accountants are accurate in their work. Your accountant arranges and evaluates your accounting statements such as balance sheet, income statement and other financial statements before you submit your tax returns.
Business Development - your accountant can advise you on how you can develop your business by analysing your financial position and recommending effective advertising strategy, inventory and human resource management, asset allocation, 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.
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.
The good news is, there are professionals who can prepare, summarise, interpret, analyse and communicate this important financial information. They are accountants. Expert accountants, together with brilliant managers, are essential elements of a successful business.
What are the Functions of Accountants to Your Business?
The role of a business accountant is divided into four main functions:
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?
Separate 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:
1. Convenience - there are numerous accountants in every community. Hire an accountant living near you to save time and money. Or, you can ask an accountant to work for you online - through emails, phone or fax. This will make you save money and time if your accountant accepts paper works through emails.
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 - expert accountants are accurate in their work. Your accountant arranges and evaluates your accounting statements such as balance sheet, income statement and other financial statements before you submit your tax returns.
Business Development - your accountant can advise you on how you can develop your business by analysing your financial position and recommending effective advertising strategy, inventory and human resource management, asset allocation, 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:
Looking for a professional accounting service for corporations in Western Australia? Take a look at tax-accounting-perth.com.au.
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