Benefits Of Accountants
Yes, accountants are worth the expense as they play a key role on determining either the growth of or the collapse of a company, especially since they deal with finances which is a factor in all companies. These roles include:
This refers to the process of balancing the financial records of a company, whereby there is a sensible profit to loss ratio. In the case of more profits made, then the business is developing successfully, however if the losses are more then serious action needs to taken in order to reverse such an outcome. It is therefore the responsibility of the accountant to analyze and understand financial records, as this is a key factor in all companies, to understand how exactly money is spent, on what, and in the case of debts or loans to ensure that money is received or paid back in good time. Through this they ensure that companies are moving in the right direction with Footprints Quickbooks Training, and most importantly growing.
The main goal of a company is usually to make money, hence enabling growth and development. Money made however has to be taxed, and these taxed have to be filed on time and the required amount, failure to which there will be serious consequences, that if not addressed immediately could lead to the downfall of a company and if worse a length court case, and destroyed reputation. This is another responsibility of accountants, it is up to them to ensure that taxes have been filed and in good time. With growth of a company comes changes in how taxes are filed, therefore an accountant analyses and pays what is necessary. Being a professional at this, they cannot be taken advantage of and end up losing money as they fully understand the process of taxes, and of need be they know who to consult.
This is whereby the financial records over a required amount of time are analyzed and studied by professionals from taxation authoritiesor investigators in the case of suspecting criminal activities or tax evasion in a company. However audits are also recommended to be done annually by an accountant or an external accountant in other cases to ensure that the financial reports in a company are adding up and no illegal business in going on.
Therefore this ensures transparency in the financial dealings of a company’s and enables the heads of the company to fully understand how funds are utilized.
Companies sometimes tend to find themselves in problems with the law due to ignorance. Accountants offer legal advise, usually tax related or financial advise as they are more familiar with the law and can help curb a company from getting caught up and engaging in illegal deals. Hence the accountants are in a position to see through deals that might look good, but really are illegal dealings.
Proper planning leads to a successful business, and this is another issues that accountants play a key role in. This entails the results of the analysis done to the annual reports, and from this it is easy to see the direction the company is heading in. This also includes future investments and partnerships that a company hopes to initiate, the accountant gives their perspective, and thoughts whether the plans are risks worth taking or if not the case they table better alternatives that are discussed critically until the come to a consensus.
In every company the employees require to receive a month paycheck, and this yet again is the responsibility of the accountant. When it comes to a growing business, they help advise what is an appropriate amount for the employees, to ensure that they are not taken advantage of, but also that they are not paid too much that will lead to the collapse of the company. Therefore they help create a good balance of proper salaries in relation to amount earned in a company. More developed companies have to ensure the balance as well, and put that into consideration when advertising for vacancies of new opportunities, they salaries must be factored in. Along with this they need to ensure that payments are done on times, and everyone receives their salary.