Why having an accountant is important for your business.

Aug 10, 2021
Why having an accountant is important for your business.

What does an accountant mean to you?

Summarising the definitions for accountant from different sources, an accountant means business. Accountants make your business run better.

Have you ever asked yourself why you need accounting for your business, even if it is a small business?

To understand why having an accountant is important for your business, we need to understand what accounting objectives are, and their purpose for business. 

To measure business performance

Business performance could be defined as the capacity of an organization to create the most extreme business benefit from the material and human resources available to it. Accounting is aimed to communicate and quantify the performance of the business. An accountant taking a gander at your books can likewise conjecture approaching costs and assessment imposes that you haven't figured in. An accountant can assist you with doing that.

To have a better understanding of business money flow

Money represents the fuel for your business. You have to keep a track of the cash flow to control it and to be able to make the right decisions in any critical situation. You will need a good plan for managing business money flow and implementing efficient policies for cash flow tracking. Therefore, the accounting goal is to have a financial strategy and a plan B for any situation. Employing an accountant increases the chances that the financial side of your business is in good control and even that your company is ready for fundraising or any sort of investing. 

To detect and avoid money loss and other risks

Being sentenced for tax avoidance draws fines going from half to 200% of the sidestepped charges and as long as years in prison. 

The results of tax evasion include audit reassessments, civil penalties, criminal tax investigations, and jail time. Accountants know how tax laws work and could reduce your tax worries. Also, an accountant could help you to detect any fraud and avoid them. Hiring an accountant can likewise carry worth to your business and help you set aside cash. 

To be better prepared to face audits

Accountant represents your ally when preparing for an audit. Therefore, this logical ally plays a key role in your internal business process, being focused on reducing risks and detecting fields where savings could be made. To ensure accurate company accounts, and for an efficient and effective method of finances distribution, you will need audit accounting.

Reasons why having an accountant is important for your business

An accountant plays a vital role in running a business by helping you to track income and expenditures, provide investors, and work with quantitative financial information which can be used in making better business decisions.

Save your time and money

Your time is a value, and you could save it by hiring an accountant for your company. The accountant will be the person who takes care of deadlines, taxes, audits, and other important stuff for a healthy business process. Also, an accountant is responsible for the cash flow and business performance measures.

Reduce your tax responsibility

No more stress regarding the tax. A good accountant knows how to take care of your company and how to save its money. The tax won’t be your headache anymore.

Help in your business development

Having an accountant is crucial for the future of your company. One of the accountant’s duties is to analyze the input and output data and to identify the areas of future development or improvement. 

Provide useful business advice

Accountants are skilled and have the necessary knowledge for doing the right analysis, expertise, and could use different accounting tools to assist as business advisers. Their advice is valuable for a healthy business. Having an accountant as an employee in your company will add further value to your business decisions.

Some online tools are going to help you in improving your business and making each process from your company easier. For example, Oklyx provides all-in-one tools to create, store and send invoices just within a few clicks. Our clients say that such platforms as Oklyx, made their invoicing process much easier and simple, avoiding communication loops between them and their accountant. Also, such platforms are very comfortable to use for freelancers, who do not need an accountant. Moreover, as accountants might save your time doing almost all the paperwork, online platforms come to reduce paper usage and help to find all documents you need. An interesting feature of digital tools is that you could easily find what you need by applying some filters. Also, important things in accounting are reports and graphical representation of cash flow. And these reports could be automated and generated. Nowadays, through such technologies, you can link the bank account easily to the invoice and let your customers pay you directly via PayPal, Stripe, Braintree.

Here are some useful tools you could use in your business process:

  1. Oklyx. is the platform that can help you keep track of your expenses and invoices in a single place. Also, it is a free app.
  2. Freshbooks. Another good application for invoicing and expense tracking.
  3. Quickbooks. This application is considered to be a good one for small business owners.
  4. Turbotax. This one, helps you get your taxes done right.
  5. Goodbudget. This one is recommended for beginners.

That is amazing, how accounting tools and other software could help you and your business. Therefore, alongside employing an accountant, entrepreneurs are progressively using digital software tools.