Importance Of An Accountant To The Success Of Your Business

All growing business can use the help of a good local accountant. A good accountant who has a great knowledge about the accounting profession can help you in putting into place a good bookkeeping system.

Every single business needs some sort of accounting system for its daily operation, so it’s very important to choose wisely when you want to hire an accountant; otherwise, their finances can get away from them. You should have a system for recording all what you spent, and also if you can expect a profit or loss out of your business in a given period. You also need to remember accounting essentially is the information compiled from a good bookkeeping system in which details are released periodically in the form of profit and loss statements.

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A good accountant will regularly measure the profit as well as loss of your business organisation on a monthly, quarterly, and yearly basis depending on how you want it. Some of the statements of account that an accountant will prepare will get somewhat complicated and confusing too. According to so many top professional accountants in New York that we interviewed, apart from profit and loss documents, there can be several other issues such as balances payable, accounts receivable, retained earnings, accelerated depreciation, and several other complex issues.

Although the documents of your accountant may seem quite complicated, they rely mainly on a good basic bookkeeping system. A good bookkeeping system is essentially the process that records every financial transaction that your business organisation performs on a daily basis.

Several people believe that accounting and bookkeeping are the same things which is not true. Bookkeeping is only a small part of accounting, we can say that bookkeeping is the child while accounting is the parent. Bookkeeping will not be relevant without accounting. Many accounting firms employ  bookkeepers on their office staff to help maintain your books of account or to advice you on how they would like you to do the bookkeeping if you choose to do it yourself.

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A good local accountant prepares his reports based on the information made available to him from the bookkeeper. Bookkeeping covers preparing basic reports that the accountant can use in his many tasks while preparing the account of the business. The bookkeeper will prepare what is known as source documents which include invoice, receipts and other proofs of payment. Source documents keep track of all the basic operations of the business such as the buying and selling, and the paying and collecting. Your accountant collects all the information made available to him by the bookkeeper and periodically turns that information into a profit and loss statement. The statement could be on a monthly or quarterly or fiscal year basis depending on how you as the business owner wants it. A Financial statement will summarize the company’s assets, liabilities, the profitability of the company, and in some cases the projected profits of the company over a period of time.

Furthermore, they will get to know you and your business as well. For a small business, the accountant may often provide the bookkeeping. As a small business owner trying to do your bookkeeping could be a costly mistake since your business is still at the growing stage. If your local accountant can not provide bookkeeping services for your business, he can certainly recommend another accountant that he works with. A good local accountant with vast knowledge about accounting working with you and your business can mean the difference between success and failure especially in the area of your finance.

It is very important to remember that your local accountant is aware of the area your business is in and has had much experience with local businesses in the area. Finance of your business play a big roll in the success of any business, so before setting up your business, make sure finding a quality accountant is one of the first things you do.