Why Are The Services of An Accountant Indispensable For Your Business?
Many businesses suffer from liquidation and bankruptcy on account of their inappropriate accounting practices. Moreover, an accountant plays a key role within an organization because money management is an important function besides maintenance of proper books of accounts for the routine activities. There are a number of reasons why any organization needs to hire an accountant.
The accountants ensure that the financial statements of an organization are consistent with the International Accepted Standards (IAS). The financial statements are prepared and presented according to the globally accepted accounting standards. Moreover, an accountant ensures that the standards are followed while preparing and presenting the financial statements. Therefore, the figures which are presented in financial statements provide an exact financial position of business.
Another important task performed by an accountant is regulating the utilization of funds in business. Therefore, an accountant is responsible for developing an internal control system that facilitates in preventing and controlling the misuse of funds in any business. Moreover, the system offers guidelines regarding the approach which needs to be utilized for handling transactions. This prevents possible misappropriation of funds. Primarily, internal control facilitates a business in achieving specific goals, tasks and objectives. Cash control systems are fundamental systems which business must develop.
Apart from these, businesses also hire an accountant for tax purposes. We all acknowledge that tax planning allows a business to plan for expected revenue during the coming years. These plans enable the management of funds in such a way that results in maximization of business tax benefits. Moreover, it also helps in reducing the time which is consumed in taxation process thereby utilizing the additional time for revenue-making activities. Filing for tax returns on time enables a business in avoiding the penalties due to late payments of taxes. Besides this, a business is also capable of avoiding overpayment of taxes.
An accountant is able to prepare the budgets together with forecasts for business revenues. This is because accountants have immense knowledge about operating expenses and flow of business revenues. Therefore, the combined process of budgeting and forecasting allows a business to prepare revenue projections for the coming years. The formulations help a business to realize the growth predictions besides planning for any anticipated disruption that might take place in cash flows.