Oct 15, 2018
Posted in Accounting
Accounting has been stereotyped for the longest time now. The moment we hear anything related to accountants-the words like tax, accounting nerds, numbers, and figures is all that strikes the mind. This is especially untrue in the technologically advanced world of today where accountants are capable of performing multiple tasks with the help of cloud accounting.
Accountants do more than just taking care of accounts and taxes for their clients. Of course, this is what we expect them to do, but there is a growing need to broaden our mindset just as accountants have widened their field of expertise.
Business owners, most importantly those who are starting a new venture, are always looking for ways to minimize their expenses. The goal primarily is to save as many bucks as possible, in as many areas as possible. As they intend to spend less, the owners are often seen doing their accounts on their own. Now, this may seem to be a great possibility if you are familiar with accounting or if you have years of experience in the field. Those who are new to accounting may need expert advice to avoid any unwanted surprises later.
Accounting is not everyone’s cup of tea. Especially when you own a business or are starting something new, most of your time will go into the planning and management of things. There is so much that an owner has to do. He has people to hire, he has to ensure that the business is running smoothly and also has losses to minimize. Apart from all this, the owner needs to be sure that his services and products are reaching where they are expected to. This is why a business needs to hire an accountant- for the sake of managing the accounts without making errors.
So you hired an accountant, and now your finances are being managed well. But is that all your learned accountant is capable of? Certainly not. An experienced accountant is worth a lot more and his capabilities need to be properly explored.
Entrepreneurs these days are looking to hire accountants who:
1. Can be trusted with business advice
2. Can use their expertise in formulating new business plans for the owners
3. Guide them through the good days and bad
4. Help them introduce the changing technology into their business
5. Guide them about tax compliance and help them implement the tax and accounting software
Accountants will obviously do what their title says- accounting. You may have hired an accountant because you were looking for a good credit score for your company. But who says there cannot be more to an accountant than just money and numbers? The perception obviously is already changing but we still have a long way to go.
Here are all the ways in which your accountant is going to optimize your business:
Start-ups fail more often than not. This happens when
1. The business structures are not determined correctly,
2. Finances are not properly managed,
3. Government regulations are not properly complied with,
4. Daily expenses are not tracked properly, etc.
Issues like these can be avoided with the help of an accountant. He can meet all formalities for you and can help you manage your personal and business expenses properly. He will also take you through a number of other legal procedures which you are otherwise not familiar with.
Businesses are volatile and the demands are ever changing. If the business is doing well, the owner is most likely to expand it. And in the case of loss-making, the business owner may prefer to shrink the process. In the case of expansion, the business owner will hire new employees and invest in infrastructure.
On the other hand, contracting the size of the business also needs to be a well-calculated move. These situations may pose certain challenges for the business owner. This is when expert advice is required. Having an accountant can guide you through all of these challenges in the best possible manner.
Your accountant will clear your plate of all the financial duties. He will take care of your balance sheets, calculate your profits and losses, prepare your yearly and monthly budget, and analyze your financial data to help you make informed business decisions in the future. The best part about hiring an accountant is that every step is taken while keeping in mind the financial regulations and laws.
Your business accountant will help you to reduce costs in a number of ways. He studies the internal working of the business to the depth and formulates policies that favor the interests of the owner. An accountant knows best about the financial health of the company and he advises the owner in a way so as to add value to the business as well as to the employees.
If not for other reasons, this one can be a real savior for you as a business owner. When you are starting a new business, you would definitely want some extra time at hand. Your accountant can take the stress of managing finances away from you.
An accountant can guide you through even the simplest of procedures. When expanding a business, you may be over or underestimating your finances. This is when your accountant can step in and clear the air for you. He builds strategies to provide expert solutions for the financial problems that your business faces and also perform a deep analysis to predict the future revenue possibilities related to the new ventures.
Accountants act as pillars of strength for a business. With their expert vision and expertise, accountants can guide their business owners in making decisions that are weighed-in and well informed. They not only add value to a business and help it flourish, but accountants also help to enhance the business image. They give valuable advice, audit your business internally to keep a check on performance, reduce costs to maximize profits and analyze a company’s financial position.
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