The objective of every business is to earn money. But money cannot be earned by just doing the business operations, for efficient money-making, keep track of the finances is mandatory. To do this job at best, the business hires accountants. The role of the accountant is equally important as of other people in any business personal like sales, production, operation etc. Undoubtedly no business can run smoothly without a trained and qualified accountant. Certain jobs can only be performed better by a competent accountant.
Bookkeeping: Running the business and bookkeeping are completely two different domains. Bookkeeping involves a financial transaction, cash, ledger and expenses. This is critical to maintain the record of each transaction because no transaction can go unaccounted, which can lead to theft or fraud. As the number of transactions increases, the complexity increase. Proper mechanism and process have to devise for bookkeeping purpose.
Financial Advice: The accountant knows about the company financial health. They are in a better position to suggest about cash stream, which will help to make the calculated decision for upcoming expenses. Even if the business owner wants to venture in something new, they need to know the financial situation to make the right decision. The accountant also helps to chalk down the business plans. Link here https://www.easytax.com.au/small-business-tax/ provide a high standard of financial service that will give a proper tax needs.
Taxation: After the bookkeeping, the second thing is taxation. Every business has to pay taxes and nobody wants to pay more than required. If they are paying taxes, they will want a proper return on their income tax. Here the role of the accountant is critical. They have better knowledge about taxation law. Also, they will be dealing with tax officers and revenue departments, they try to maintain a healthy relationship with them. No business wants to attract attention towards undue audits and financial implication due to taxation. The accountant ensures that all the records are updated and as per taxation law.
Business Valuation: The accountant will ensure to record all the business assets, liability and revenue. This is very important for business valuation. This can increase the prospects of future investment and enhances the trust of current stakeholders. Also, if the business owner is not informed about their business resources, they will never be able to make a better decision.
Cost Saving: Recording all the business transaction and expenses. This data will help to make smart decisions about the business. There will be a certain area where the cost can be reduced, this will be highlighted with the right reporting of expenses. The accountants can highlight the high-cost area to management and then they can make strategies to reduce their cost in the respective area. This will increase make business more cost-efficient and enhances the profit margin.
Business growth: Business can grow, with the right resources and applying those resources in the right way. Finance is one of the most important resources for any business. If it will be effectively recorded and visible to management, then they will able to decide to grow their business. An effective accountant will help in the growth of the business.