Merit of Accountants in Small Business
A business is a profit making entity. There are various staff required to run business. For a small business to run well it needs an accountant. An accountant is responsible for managing business finances. Since they account for all the finances of a business,they ensure it runs for along time. This document will outline the importance of having an accountant for a small business.
Accountants assist the business open an account and manage the account on its behalf. When small businesses open, it is important that they have business account for business transactions only. Mixing personal finances with business finances is not advisable.
Accountants help in keep in track of business expenses. This is very important as there is need to know where money goes after in comes into the business. Inflow and outflow of money is recorded by the accountant. Business are advised on how tot to overspend by being trained on money management. A business may close due to overspending hence the importance of accountants.
Accountants in small business enable the business to have a bookkeeping system that is used to run the day to day activities. Business finances are kept organized by the system. Its easy to know the activities of the business without having to check each activity. Time and effort is saved by the book keeping system. It also makes it easy for the auditors to audit the business finances .
Payroll is organized by the accounts department. They liaise with the HR to ensure that the salaries are paid on time. Accountants will calculate and deduct all the deductions necessary in order to avoid legal implications. They also remit the deductions to the government. Without accountants there is no smooth running of the human resource especially when payments are concerned.
When it comes to filing taxes and making returns accountants are very important. As we all know failure to pay taxes is an offence and may lead to the business being shut down. Accountants will calculate and remit the taxes due to the government. They also ensure they do the monthly and yearly tax returns. The business is advised on tax matters such as tax relief and discounts by the accountants.
Businesses are started with the aim of making profits. Profits are the main reasons why a business regardless of size is opened. The profit that the business makes is calculated by the accountants. Gross profit is also calculated by deducting the business expenses. Whether the business in in profits or losses , accountants will be able to tell and advise the business owners on the next step.

The Path To Finding Better

5 Takeaways That I Learned About