Many small businesses owners have probably heard the stat about business failure and hoe a high percentage of SME’s close up within the first 18 months. Extensive research has shown that one of the main reasons behind this stark statistic is poor financial management.
Despite these dire consequences, many business owners will still decide to go it alone when it comes to managing their money. A recent report found that 53 percent of small business owners don’t use an accountant at all. And even more shocking, 27 percent of these respondents simply use pen and paper to keep track of their finances.
While we shouldn’t conclude that these businesses are worse off for not having an accountant, we can’t underestimate the breadth of knowledge and experience an accountant can provide.
An accountant is a professional role filled with plentiful duties and busy days at the office. The general basis of business accounting involves helping sole proprietors, companies and corporations carry out the financial dealings of their daily business transactions. Although business accountants will help out greatly during tax season, their role is not only applicable during this time but throughout the year as well.
What Does a Business Accountant Do?
First and foremost, a Business accountant
will keep a tally of all financial transactions which the business handles on a daily basis. The accountant will record the transactions in order to have a concrete record for the company whenever they need it available to them. This is especially helpful when it comes time to pay taxes on the business and can easily be retrieved due to the excellent record-keeping skills of the accountant within the business.
Also, your business accounting expert will let you know which purchases are best to make, which ones have tax benefits related to them and, overall, how to make the most of your money. Your accountant in the business arena is your “go-to professional” when it comes to keeping track of spending and handling tax issues surrounding such expenditures.
Hiring a Business Accountant
You have a couple of options with regard to hiring an accountant for your business. One option is to hire an accountant and keep them on staff as a full-time employee and another option is to utilize the services of an accountant for your company or corporation on a part-time basis.
When considering which option works best for you, look at your business accounting needs as well as your budget in order to make the best decision. Some companies like to have their accountant present each and every day in order to help them make the best decisions while others are fine with having a part-time accounting professional on call where they can make use of their services on an as-needed basis.
Accountants in the business arena are extremely important professionals.
They help company officials to spend their company funds wisely, get the best tax benefits along the way and keep track of the income and expenditures which a company makes. Depending on your accountant, the duties of the company accountant can be as few or as voluminous as you desire. No matter what type of duties your accountant possesses, it is simply a good idea to ensure that you have a knowledgeable accounting professional on your staff in some capacity.
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