Why A Business Needs An Accountant

Why does an enterprise need an accountant?

The activity of any organization requires the availability of accounting, which systematizes the work of the company, compiles accounting registers, where documents are selected in a specific order. On the basis of these tables, the reporting of the enterprise as a whole for the management, other departments, the tax inspection is formed. After analyzing the reports received, the company’s management is determined in making management decisions.

Today, many companies are increasingly doing without an accountant or using various websites, programs, and services that help to issue electronic reporting.

Large companies have a financial department in their staff for analyzing information and accounting, fixing documents and issuing certain reports, in small organizations in most cases the accountant combines these two functions.

Every entrepreneur, starting a business, needs the services of a qualified accountant. In most cases, businessmen do not always have available permanent accounting, which qualitatively organizes the documentary reflection of the company’s activities.

The duties of an experienced accountant include:

– development of an accounting system at the request of the management;

– development and implementation of changes in accounting as the company grows;

– assistance to management in the analysis of financial reports in order to identify problems and development strategy of the enterprise;

– facilitating the inflow of capital through the formation of specialized financial statements for potential investors and creditors;

– forecasting the development of the enterprise.

At the request of management, accounting should promptly provide information about the financial and economic status of the company. As a rule, management is interested in the data:

– the financial condition of the company;
– cash flow;
– income and expenses of the enterprise;
– inventory of warehouses;
– planning future expenses and revenues.

All of the above indicators are evaluated by management for the main goal – the effective management of the company’s financial assets, cost optimization, and are taken from the financial statements of the organization, such as:

– balance;
– report on income and expenses;
– cash flow statement;
– report on the movement of authorized capital;
– Explanatory note.

Every accountant should be able to:

– analyze the company’s activities, which will be useful in assessing excessively high costs, loss of potential profits;
– to organize the work of accounting (if there are several accountants for the sites);
– draw up a management and tax accounting policy;
– competently and quickly prepare financial statements;
– to make clear for management reports on demand.

To work effectively together, an accountant must:

– recognize the commercial component is fundamental to the business;

– be able to propose solutions to a situation based on professional judgment;

– on the basis of the approved accounting policy of the enterprise, organize the activities of the accounting department, observing the basic principles of accounting and tax accounting.

Well-coordinated and efficient teamwork between management and accounting helps to achieve a high level of managerial awareness of the current financial situation of the company. As a result, management will make the right management decisions, which will result in the achievement of the main goal of the company’s existence – making a profit.