There are many quality people that a business must have if it hopes to succeed. One of those people is a quality accountant. Without someone who can keep the books and file financial reports on time, a company could find itself in trouble with regulators and with tax authorities. What else can an accountant do for a business?
Accountants Help Find Ways to Save Money
Your accountant may be able to do an audit of your company’s finances to find ways to reduce costs such as cutting payroll. For instance, using computer software to keep track of inventory instead of hiring a person to do it could save thousands per year. In fact, just upgrading to newer inventory software could save money without having to let anyone go.
Accountants Can Reduce Loss Through Theft
Ideally, your accounting department will balance cash registers or otherwise regularly examine financial records. If they notice unusual or unexplained transactions, it could be a sign of theft. While it could also be that an employee pushed the wrong button when entering a sale, it is important to find the cause of these or other irregularities. Failing to do so may eat into a company’s profit margin and make it harder to succeed.
Keeping Good Records Is Vital
Let’s say that you are trying to get a loan for your business. If you tell them that your financial information is located on my site or on a social media page, that isn’t going to be enough to convince that lender to do business with you. What lenders and others who may provide capital want to see are organized records with objective data about the health of your company.
If you ever plan on taking your company public, it will need to adhere to certain accounting standards to help investors know what they are buying into. Failing to adhere to these standards or making other errors in keeping financial records could lead to being taken off a stock exchange.
Sloppy records or having no records at all may also jeopardize your chances of selling your company to private buyers when you are ready to exit. Therefore, it is critical that you pay whatever it takes to get a quality accountant or to train a quality accounting department within your organization.
Set Projections for the Future
If you don’t know how much money your company made last year, how do you know if your company is improving its revenues this year? Even if your company isn’t making more money than it did last year, it is important to know that too. This may allow your business to find the reason why this is happening and take steps to resolve the issue.
Any business owner who is serious about the success of his or her company needs to hire someone who can keep track of its numbers. Doing so helps an owner make educated decisions about how to help his or her company grow in the future and help overcome any obstacles that may be stopping that from happening now.