Have you ever wondered what exactly an accountant does? Why they charge the rates they do? And what the benefits of having one are? If so, you’ll want to read the rest of this article.
So what exactly are these number geniuses doing behind the scenes that make them crucial to a business’s success? As a business owner you should know the ins and outs of the benefits of having a great accountant. After all, the work of an accountant can turn any average business into a successful one.
Let’s be honest, you’ve probably took the time to study an accountant course you found online and you’re also most likely managing your own books, and you think you’ve got this! But let’s also be honest, this doesn’t make you an accountant.
Accountancy is a standalone trade for a reason, and it comes with many complexities and skills that cannot be learnt or taught overnight. Let’s explore the main functions.
What does an accountant do?
An accountant is the person reliable for the financial state and accounting books of a company or sole trader, and this can be within the private or public sector.
Let’s assume you know absolutely nothing about what this profession entails. Their main task is to record income and expenses in a firm’s accounts, whilst remaining compliant to ensure that all transactions are following the legal framework and standardised procedure of the country you are business operates in.
The day-to-day tasks include audits, monitoring income and expenses balances, analysing accounting records, ensuring both income and costs are being properly recorded, verifying the business books and making sure they remain legally compliant, preparing budgets, managing payroll, and tax reporting.
The functions of an accountant
Still looking for more explanation? Let’s take a look at the functions in more detail by exploring seven basic functions…
- Commercial operations. Analyse budgets for company expenses and compare them so that the decision-makers can choose the most optimal.
- Inventory. Keep track of business assets and liabilities.
- Billing. Preparation of invoices and ensuring that they comply with the current legalities of the country your business operates in.
- Bank Reconciliation. Bank accounts of the company are controlled by the accountant, so make sure you choose one that you are certain can do the job. They will monitor if there are any discrepancies in the income and expense records.
- Tax Returns. Ensure all the relevant taxes and obligations are filed correctly and comply with the current laws.
- Accounting reports. This function results in a set of reports that will be fed back to the relevant decision-makers in the respective departments.
- Financial projections. These projections will be vital for predicting and establishing the company’s future strategies.
If your business has got this far without having a trained accountant at your disposal then kudos to you. However, for future growth you may want to invest in a professional and an accounting system to drive your business in the upwards position. If you’ve decided you want to invest in an accounting guru or you want to continue to manage the books yourself, you may want to become a master of Holded’s accounting tool.