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.
On the positive side, there are professionals who can prepare, summarize, interpret, analyse and communicate these valuable financial information - accountants. Professional accountants, together with smart managers, are important for a business to operate well.
The Functions of Business Accountants
The primary functions of a business accountant are divided into 4 areas:
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.
4. Communicating the Results - business accountant practices accounting, considered to be the language of business and there are several transactions that are communicated through accounting. There are also various external parties who are interested in knowing the results of a company. Aside from owners and employees, investors, creditors and tax authorities are also interested. It is the job of the accountant to assess and analyse the financial position of the business at a particular time based on the financial information gathered. Then, he communicates the meaning of the financial information for the individuals or organizations who are interested.
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:
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.
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.
On the positive side, there are professionals who can prepare, summarize, interpret, analyse and communicate these valuable financial information - accountants. Professional accountants, together with smart managers, are important for a business to operate well.
The Functions of Business Accountants
The primary functions of a business accountant are divided into 4 areas:
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.
4. Communicating the Results - business accountant practices accounting, considered to be the language of business and there are several transactions that are communicated through accounting. There are also various external parties who are interested in knowing the results of a company. Aside from owners and employees, investors, creditors and tax authorities are also interested. It is the job of the accountant to assess and analyse the financial position of the business at a particular time based on the financial information gathered. Then, he communicates the meaning of the financial information for the individuals or organizations who are interested.
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:
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.
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:
Can't find a reliable and cost effective corporate accounting service in Western Australia? Visit Baggetta's website at www.tax-accounting-perth.com.au.
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