An organization that makes profit is a business. When one starts business there are various staff that must include in the day today learning of the business. An accountant is required in order to run a business. An accountant is responsible for managing business finances. They are very important people who ensure that the small business becomes sustainable since they accountant for all its financial issues. This document will outline the importance of having an accountant for a small business.
Accountants assist the business open an account and manage the account on its behalf. Accounts for business operations only are important when small business start operations. Mixing personal finances with business finances is not advisable.
Tracking of business expenses is done by the accountants. Tracking inflows and out flows of cash Is important. The record cash inflows and out flow. They are also able to advise the business on proper expenditure thereby preventing over expenditure. A business may close due to overspending hence the importance of accountants.
Accounts department comes up with a way to run business finance smoothly by developing a bookkeeping system. With a system in place it easier to keep the finances of the business organized. One can be able to know how the business is doing very easily without having to go through each activity. Time and effort is saved by the book keeping system. The auditors work is also made easier.
How people are going to be paid is organized by the accounts department. They liaise with the HR to ensure that the salaries are paid on time. Accountants will calculate and deduct all the deductions necessary in order to avoid legal implications. The government is paid the remittances from the deductions by accountants on behalf of the business. Where payment is concerned in the HR department smooth running is enabled by the accountants.
Accountants are very key when it comes to filling and making tax returns. It is common knowledge that failure to make tax returns is an offence that may lead closure of the business. Tax owed to the government is calculated and paid by the account department. They also ensure they do the monthly and yearly tax returns. An accountant is also able to advise the business on all matters that revolve around task such as tax discounts and tax reliefs.
Businesses are started with the aim of making profits. Profits are the main reasons why a business regardless of size is opened. The calculation of profit margins is done by the accountant. They also deduct the expenses so as to come up with the gross profit. The accountant will advise the business owners whether they are making profits or losses.
