Numerous businesses file for bankruptcy or fall into liquidation and all of this can be attributed to the improper book keeping practices. Management of funds is a crucial role that accountants perform very well in addition to the recording of all business transactions in a proper manner. There exist many reasons as to why a business requires the services of an accountant and some of them are as follows:
Accountants make sure that financial statements comply with the International Accepted Standards (IAS). Preparation and presentation of financial statements follows a number of accounting standards which are accepted worldwide. An accountant makes sure that these standards are adhered to while preparation and presentation of the financial statements is being done. This ensures that the figures that are presented in the financial statements give the accurate financial position of the business.
The accountant assists in the control of funds within the organization. The accountant is responsible for coming up with an internal control system that will control and prevent the misuse or embezzlement of funds in the business. This ensures that there are prescribed procedures of how things are done which does not leave room for any misappropriation of funds. The internal controls assist the business to accomplish certain tasks, goals and objectives. Control of money is the most crucial internal control that a business needs to set-up and the accountant is needed for the accomplishment of this task.
The other important reason why a business needs an accountant is for taxation purposes. Tax planning permits the business to develop a plan for anticipated revenue in the years that follow. The plans may assist in the management of money in a way that maximizes the businesses tax benefits. The benefits of this include spending less time in taxation processes and using the spare time in concentrating on other income generating activities. Timely filing of tax returns also assists the business in avoidance of penalties on late payment which saves some money for the business. The business will also be able to avoid overpayment of tax which means that they will not have money that is tied in tax refunds.
Budgeting along with forecasting of business revenues is capable of being prepared properly by accountants. This is attributed to the actuality that the accountants have vast knowledge of operational costs as well as the flow of business revenues. The above processes of forecasting plus budgeting permit the businesses to formulate projections of revenues into the near future. These formulations can lend a hand to the business to institute its growth predictions in addition to planning for whichever anticipated disruptions that may occur in cash flows. This practice is usually founded on the concept of going concern which is part of the Generally Accepted Accounting Principles that each and every accountant is required to follow in the accounting profession.
As discussed above, an accountant is required in all businesses to ensure that the cash flow is closely monitored. It is rumored that the person who has control of the money in a business is the one who controls the business. This is true since all businesses have profit maximization as an objective and it would be difficult to achieve this goal without an accountant being present to control the use of money. Therefore, a business with an accountant will probably be a successful business. - 31821
Accountants make sure that financial statements comply with the International Accepted Standards (IAS). Preparation and presentation of financial statements follows a number of accounting standards which are accepted worldwide. An accountant makes sure that these standards are adhered to while preparation and presentation of the financial statements is being done. This ensures that the figures that are presented in the financial statements give the accurate financial position of the business.
The accountant assists in the control of funds within the organization. The accountant is responsible for coming up with an internal control system that will control and prevent the misuse or embezzlement of funds in the business. This ensures that there are prescribed procedures of how things are done which does not leave room for any misappropriation of funds. The internal controls assist the business to accomplish certain tasks, goals and objectives. Control of money is the most crucial internal control that a business needs to set-up and the accountant is needed for the accomplishment of this task.
The other important reason why a business needs an accountant is for taxation purposes. Tax planning permits the business to develop a plan for anticipated revenue in the years that follow. The plans may assist in the management of money in a way that maximizes the businesses tax benefits. The benefits of this include spending less time in taxation processes and using the spare time in concentrating on other income generating activities. Timely filing of tax returns also assists the business in avoidance of penalties on late payment which saves some money for the business. The business will also be able to avoid overpayment of tax which means that they will not have money that is tied in tax refunds.
Budgeting along with forecasting of business revenues is capable of being prepared properly by accountants. This is attributed to the actuality that the accountants have vast knowledge of operational costs as well as the flow of business revenues. The above processes of forecasting plus budgeting permit the businesses to formulate projections of revenues into the near future. These formulations can lend a hand to the business to institute its growth predictions in addition to planning for whichever anticipated disruptions that may occur in cash flows. This practice is usually founded on the concept of going concern which is part of the Generally Accepted Accounting Principles that each and every accountant is required to follow in the accounting profession.
As discussed above, an accountant is required in all businesses to ensure that the cash flow is closely monitored. It is rumored that the person who has control of the money in a business is the one who controls the business. This is true since all businesses have profit maximization as an objective and it would be difficult to achieve this goal without an accountant being present to control the use of money. Therefore, a business with an accountant will probably be a successful business. - 31821
