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.
Controlling of funds usage is another task of the accountants in a business. Development of a system for internal control is the responsibility of the accountant. The system will prevent and control the embezzlement or misuse of money in a business. It gives the guidelines on how transactions are to be handled thereby locking out any avenue that might be used for funds misappropriation. Internal controls basically help businesses to achieve certain goals, objectives and tasks. Cash control systems are crucial controls that businesses need to develop. The accountant plays an important role in attainment of this undertaking.
Business taxation makes the services of accountants' all the more necessary for a business. Tax planning let businesses to formulate plans for any expected revenues. This normally assists in the management of funds which makes the business to maximize the benefits of taxation. A number of the benefits include time savings out of which the time saved could have been used in focusing on other income generating activities by the firm. The filing of tax returns can also be done in the correct time frame resulting in avoidance of penalties and other late payment fees which might prove costly to the business. Proper tax accounting can also prevent money from being tied in form of tax refunds to the business since the correct amounts will be paid.
Accountants are very knowledgeable in relation to business revenue forecasting and budgeting. They have an understanding of the operations costs and the flow of revenue into the business. These processes permit the businesses to come up with future revenue projections. This gives the business assistance in establishing its prospects of growth in the years to come as well as plan for future anticipated disruptions on the cash flow. The concept of going concern acts as the principle on which this is based and is one among the Generally Accepted Accounting Principles.
The discussion above shows that an accountant is important in any business since they make sure that cash flow is monitored closely. It is believed that the individual who has control over the money normally controls the whole business. It makes sense since profit maximization is the major goal of most businesses and this might be difficult to achieve without an accountant to control the funds. Consequently, successful businesses are those that have an accountant. - 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.
Controlling of funds usage is another task of the accountants in a business. Development of a system for internal control is the responsibility of the accountant. The system will prevent and control the embezzlement or misuse of money in a business. It gives the guidelines on how transactions are to be handled thereby locking out any avenue that might be used for funds misappropriation. Internal controls basically help businesses to achieve certain goals, objectives and tasks. Cash control systems are crucial controls that businesses need to develop. The accountant plays an important role in attainment of this undertaking.
Business taxation makes the services of accountants' all the more necessary for a business. Tax planning let businesses to formulate plans for any expected revenues. This normally assists in the management of funds which makes the business to maximize the benefits of taxation. A number of the benefits include time savings out of which the time saved could have been used in focusing on other income generating activities by the firm. The filing of tax returns can also be done in the correct time frame resulting in avoidance of penalties and other late payment fees which might prove costly to the business. Proper tax accounting can also prevent money from being tied in form of tax refunds to the business since the correct amounts will be paid.
Accountants are very knowledgeable in relation to business revenue forecasting and budgeting. They have an understanding of the operations costs and the flow of revenue into the business. These processes permit the businesses to come up with future revenue projections. This gives the business assistance in establishing its prospects of growth in the years to come as well as plan for future anticipated disruptions on the cash flow. The concept of going concern acts as the principle on which this is based and is one among the Generally Accepted Accounting Principles.
The discussion above shows that an accountant is important in any business since they make sure that cash flow is monitored closely. It is believed that the individual who has control over the money normally controls the whole business. It makes sense since profit maximization is the major goal of most businesses and this might be difficult to achieve without an accountant to control the funds. Consequently, successful businesses are those that have an accountant. - 31821
About the Author:
Want to find out more about an experienced CPA in Tucson, then visit Flowers Rieger and Associates.
