An accountant is a person, who is qualified in recording and keeping business transactions of an organisation, gives statements about finances to the management and issues a report on how the organization is performing. Many businesses could benefit from having an accountant. There are so many jobs that they could assist the business owner with, making their lives a lot more straightforward. For businesses who would like financial assistance from an accountant, it might be worth visiting https://www.eidebailly.com/locations/phoenix to see if their services could be beneficial. Below are reasons why one may need an accountant.
- Writing a Business Plan
An accountant is essential at this stage because he is knowledgeable in using accounting software to deal with some projections in your finances and similar reports in investments. Your business will succeed depending on how realistic and professional your business plan is set, and the accountant is vital in making it succeed. You might also consider investing in software such as ERP by contacting consulting firms similar to Syte Consulting Group, which can help you streamline your accounting needs along with automation, data analysis, financial management, CRM, etc. through data integration. Particularly, the accounting department can have easy access to data, and the credit goes to ERP technology. Organizations that use separate systems for accounting and sales must manually manage the data. On the other hand, there is an automatic data transfer for an integrated ERP system for accounting. As a result, you don’t have to manage data manually, which makes it faster, more accurate, and consistent.
- Advising About Legal Structure of Your Company
Different businesses have different business legal structures, and an accountant can help you through in understanding some of these legal structures and choosing which is best for you. For example, you should realise legal structures that are there in limited liability partnership, limited companies, sole trader or sole proprietorship, corporations etc. Accounts for limited companies are somehow complex to handle, and it requires an expert, an accountant. They are also familiar with different tax laws and will advise you in decision making.
- In Helping You with Your Finances
An accountant is necessary for managing your finances in your business, especially when you don’t have a track of your money circulation and when you and their debtors are unable to know who owes you and how much. He also helps in payrolls for your employees and balancing the company’s total revenues and employees’ salaries and other payments made in the company.
An accountant can also provide you suggestions and insight over business data and transaction security and privacy. A business can be vulnerable to information, identity, and money theft. Accounting and finance professionals can integrate security solutions to ensure business payment gateways (you can check out https://www.tokenex.com/blog/what-is-payment-gateway to learn more about payment gateways) and all the sensitive data stay safe and out of the public reach.
Other benefits of hiring an accountant are;
- He will advise you on deductions if there might arise and how you can differentiate between your expenditures from those of your business
- He analyses for you your financial statements at large for you to understand how your business is doing and plan better for the future of your business
- He can take you through an audit of your business if it is required and give you a piece of advice after that
- He will enable you to get enlisted in HMRC within the necessary time and pay for your company’s taxes correctly
- He will assist you in obtaining the required licences to run your business
An accountant can be hired on a short term basis depending on the scope of your business, especially for small scale businesses. Some opted in doing their accounting by using accounting software; however, some risks lie behind it. First of all, you won’t realise when you are making mistakes, and secondly, there might be a reduction in tax liabilities and allowances that you won’t be aware of.
Whether it is necessary one need an accountant or not lies in the hand of one who owns the business because he knows about his/her business. It is widely regarded that having the right accountant is the way to go because they will get into your business, guide you through and advise you on mistakes made and how to correct them.