The Scoop on Accountants and Why Your Business Needs One
Accountants do a lot more than crunch numbers and balance the books for businesses. In fact, an accountant can prove to be an intricate part of your company’s success. Although their roles mainly revolve around figures, their role in your business can stem well beyond adding, subtracting, and recording. If you’re thinking of outsourcing to or hiring an accountant, here are some of the ways you’ll benefit.
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Whether you have an online business or a brick and mortar location somewhere, the accounting structure of your organization is an essential component to running a successful business.
An accountant’s primary role in any business is typically to collect and maintain company financial data. It is their responsibility to make sure that your accounting processes follow the laws in your state.
That’s why choosing an accountant in your area is ideal to ensure they’re aware of these accounting laws.
So, if you lived in Utah, you might hire or outsource to an accountant Salt Lake City businesses trust.
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Your accountant will also play the role of analyst from time to time. As they manage your company financial data and perform certain processes they can review pertinent information and provide advice that will help to grow your business.
Whether it’s deciding on ordering office supplies, how many employees you can afford to hire, or giving advice on when you can expand, your accountant can determine a lot of things from reviewing your finances.
Through careful analyzing, your accountant can help you to make effective business decisions that won’t have you up to your nose in debt.
Financial Reporting and Preparation
Businesses are required to keep detailed information on their finances. At any given time, you could be asked for this information by the state government, IRS, banks or lending institutions, or even your investors.
An accountant can make this easy for you. They often generate monthly and annual reports based on the financial data from your company. These reports can then be easily accessed for gaining continual financial support, filing taxes, or making budgetary forecasts about the future.
Did you know that your accountant can make sure that your business remains in compliance with all local and federal tax laws? They are responsible for making sure that all financial reporting deadlines are met. For instance, the IRS expects businesses to file taxes on a quarterly basis.
Your accountant will compile those financial documents for you so that you are accurately recording your income and more importantly, paying those taxes on time.
Hire or Outsource an Accountant?
Didn’t realize how much of a role an accountant played to businesses? Don’t be ashamed, most assume they only do bookkeeping or provide tax help. Now that you see their roles can help to grow your business while also keeping your finances in order, bringing one onto the team is ideal. But, do you need to have an accountant on staff full time? Or could you outsource your accounting needs? Here is some advice:
Hire an accountant if….
- You have a large company
- You often need assistance with making purchase decisions
- You have the budget for it
Outsource your accounting needs if…
- You can’t afford to pay someone full time
- You don’t need a lot of help understanding your finances
- You have an in-house bookkeeper but want to add another accounting professional
- You have a small business with few accounting deadlines
Accountants are more than just number crunchers and bookkeepers.
They are analysts, decision-makers, auditors, and more. If your small business has gone without the help of an accountant, it may be worth considering. Their role is crucial to the success of your business and can help you take your company from one level to the next with their financial advice, accurate reporting, and experience.
If you can’t afford to hire an accountant full