So what is an accountant good for anyway? With recent developments of tax preparation and accounting software, you figure the duties of an accountant can be taken over by you. Right? Wrong.
Contrary to popular belief, a good accountant does more than just prepare taxes and handle payroll. An accountant is an invaluable asset to any business for a myriad of reasons, but lucky for you, I’ve narrowed them down to the top 3 that often go unnoticed.
1. Proper Bookkeeping
The keeping of accurate financial records is the most important factor that leads to dependable financial statements. Bookkeeping includes updating and maintaining accounting records, including those which calculate expenditures, receipts, accounts payable and receivable, and profit and loss. So, you must be wondering why you can’t just hire a bookkeeper to do all this. A simple bookkeeper’s job is much more mechanical and less subjective than an accountant’s job. An accountant can initially set up an adequate bookkeeping system, monitor it, and then interpret the results, three crucial things that most bookkeepers are just unable to do. Finally, an accountant presents the financial statements to the business management in a way that decisions can be made.
2. Tax Planning
One of the biggest advantages of having a great accountant is careful tax planning. As I mentioned before, this is much more than just preparing taxes. Your accountant should work with you throughout the year and provide advice on how to operate your business in a manner that will provide the most tax savings. This can save your business a substantial amount of money in the long run.
3. Business Consulting
A good accountant should be able to help your business grow. He or she should assess your current problems and offer specific solutions to fix them. This includes offering advice on internal controls, risk management, lease versus buy decisions, inventory strategy, and pricing. Furthermore, the accountant needs to truly understand your business from the inside out before providing you with this valuable information.
