Case Study: My Experience With Services

Importance of an Accountant to a Small Business Enterprise

Regardless of the geographical location the main objective of every business is to be profitable. Although all objectives are important, the firm must also be profitable to be a going concern. Good management contributes greatly towards the profitability of any trade. In order to achieve business management, a firm must have a proper bookkeeping operations. Many multinationals succeed because of implementing sophisticated bookkeeping mechanism unlike startups who undermine the value of good record keeping. Every growth oriented startup should consider hiring a reputable accountant. This article will discuss the importance of an accountant to a small business enterprise.

It is worth noting that an accountant goes through a comprehensive training in the area of finance. The primary objective of an accountant is to ensure a firm’s operation is in line with the State’s statutory obligations for every business. Each firm is expected to meet several statutory requirements which are not optional. The payment of corporate tax, the filing of returns, filling employee’s tax obligation and payment of directors personal taxes is a mandatory obligation.

An organization may be required to withdraw some taxes before they make payment to their creditors and submit the same to the government. Disregarding the laid down statutory obligation can put a business into a lot of problems. Even if the entrepreneur is ignorant of the statutory obligation, the IRS will not be lenient. In order to be in good books with the IRS, the proprietor should employ an accountant. To avoid stress that comes with dealing with a record’s management system a wise entrepreneur should hire a qualified accountant.

The proprietor or other personnel avoid multitasking when they hire an accountant. Once an accountant is on board the workforce can concentrate on their areas of strength in the organization. This may be dental services, general medicine, legal services, and retail services to mention but a few. The proprietor will have ample time to interact with customers and give them a great customer experience. The burden of managing a business solo is not sustainable as the individual will burn out within no time.

Remarkably, the accountant can also advice the proprietor on steps they can undertake to attain growth. The accountant can scrutinize the books of the business and indicate areas which can be improved on to attain more profits. When overheads are reduced the business becomes more profitable and hence a going concern.

Accountants are competent and organized when it comes to managing records. The firm will also avoid brushing shoulders with the law because of their ignorance of the numerous laws associated with record keeping.

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