When you start a small business, you may spend a lot of time figuring it out where to cut the cost and how it minimizes the expenses. business owners may be keen at keeping an eye on the money spent on business. If you’re an accountant and have a solid understanding of accounts procedures than you can calculate all the expenses. But if you have a lack of understanding of business finances then it may hurt your business financial transaction.
What are the consequences, if a business does not conduct accounting?
If accounting is not conducted in a company the business may lose a lot of money. There would be no manage records for all the financial transactions which may lead to misrepresentation and money embezzlements. Huge losses in money may cause the business to fall into risks.
Does every business need an accountant?
Every business whether it is a mall or big it may need a person who can financially advise them on the business activities and financial planning of a company.
Below are some of the ways where an accountant can help a business owner
During start up Process
When starting a business there are many situations where you need to take action and create the foundation for a successful business. An accountant can help in the during the start-up process in the following ways;
- Determine the structure of your business in your situation
- They can explain to you the importance of personal expenses and business expenses
- Help you in tracking expenses and your daily business activities
- They can assist you in business planning and financial analysis
- They can provide you with advice regarding accounting systems
- Assistance in opening a bank account
- Make sure that your accounting process comply with the business regulations
During regular business operation
Once the business has started its operations the owners need to maintain accounting records. There is some situation where an accountant can help you during the regular business operations:
- Explain your financial statements so that you can understand the in and out of business
- Ensure that your independent contractors are classified
- They keep a check on the company payroll and payment process
- Providing advice on estimated tax payments doing the year
- Closing out the books and sloop creating financial reports at the end of the year
- Compile and submit the taxes and all the necessary tax work
Business growth stage
When the business is a stage of growth an accountant can act a san integral part of your business and proved advice and helps you to manage the process. An account ta can:
- Determine the areas for growth by providing a picture of cash flow and business financing
- Advice on property and equipment and purchase
- Prevent you from unnecessary audits
- He guides your thorough an audit process
- Can help to create a forecast for your finance and make better decisions for your business
- Can help you create a business budget that will support the business goals
- Can provide advice and assist you with sales of business
Some additional way was an accountant can help you
They can help to fix your cash flow
The business may run out of money and cannot afford to pay staff or suppliers. Even a highly operative business does not last if the be cash flow is inactive a d the expenses are too high. Accounts are a good Knowledge of all the Cash flows and expenses and can manage the situation of the financial crunch by implementing strategies. They can create a budget plan for all your expenses and ensure that there is always money in the bank.
Manage your Debts
The accountants can also help you to manage your debts. They can find lead expensive strategist to get too relieved from debts and can help to make the payment as quickly a possible. They can also advise you on res structuring of debts can develop a specific strategy for your business.
Assist in managing inventory
If the business spends a lot of money in storage or loses money in damaged goods then managing inventory smartly can be critical in business. The accounts can assist you in identifying the cost of inventory also bring up techniques top save some money and can help to predict some stock needs.
If you are in search of an accountant to look after your accounting needs make sure you also consider the skills and knowledge.
Out team at Farahat and co is one of the best accounting firms in Dubai. Our experts can take care of all your accounting needs as per the client’s specifications