Howard Ghedia

How do accountants add value to business?

Accounting is one of the most important functions for any business. The recorded and regulated income and expenditure helps in smooth running of a business and predict its future. A dedicated professional for this job makes it easier for the company to run a successful business by providing various value adding services.

Instead of hiring a personal accountant, companies can also choose to opt outsource the same services from accounting firms. A firm like that employs various specialised accountants and provide varied services like handling a client’s payroll, accounts receivable and accounts payable, taxes and more.

Roles and responsibilities of an accountant

There are different types of accountants like tax accountants, cost accountants, investment accountants and more. Whether working as a personal accountant for a company or in an accounting firm, the professional in the field has various roles and responsibilities that go beyond just maintaining the financial records. Here are a few reasons to why an accountant is a valuable asset to any business

Evaluating the business performance

For any business to thrive, it is important to understand its performance over the period. Accountants help the process by tracking the income and expenditure by maintaining a balance sheet, income statement and cash flow statement. All these records provide crucial information and determine the financial condition of the company.

Budgeting future

Only after determining its financial condition, can any company focus on planning and expanding its business. A financial record makes this job easier and even helps in budgeting for future plans and projects. It also helps with comparing the financial growth with similar businesses and in the industry. Accountants ensure the financial records of the company are well maintained and up to date.

Ensuring the statutory compliance and tax filing

The laws and legal obligations vary in different countries and even states. It could get difficult for the owner to juggle with new ideas and projects while keeping the legal complications in mind. A good accountant offers quality compliance including services like tax planning, preparing and lodging, ASIC annual reporting and more.

Planning cash flow and forecasting

Problem with managing the cash flow forces is the reason for almost 90% of the companies that shut. Therefore, a well maintained cash flow is crucial for any business. Accountants help with reviewing the cash flow forecast and can warn about any potential cash flow issues and reduce the chances of liquidity risk.

Filing of financial statements

Filing of financial statements with the Registrar of Companies is required by all businesses. The listed entities file them for stock exchanges and for tax, direct and indirect. And by now, we already know the role an accountant plays in this scenario.

So, it’s safe to say that with all that knowledge about the financial condition and understanding of your business and similar businesses, your accountant can provide you with valuable suggestions to enhance the growth of the business. They can identify the potential opportunities and threats, planning and saving the company even during difficult times. They give you the support, confidence and direction you need to work towards your business goals.

Whether you hire your own professional for your company or opt for a firm, it is an accountant’s hard work and skills that help shape the future of your business.