When starting a new business, you’ve probably heard people say “get a good accountant!” While you’re probably sick of hearing this, partnering with the right accountant can save you a lot of money and headaches in the long run.
A great business accountant helps you keep track of how the company is doing, and if you are making a profit. An accountant also provides vital financial information to stakeholders, management, creditors and investors.
Having accurate and timely data on hand allows you to make important and intelligent decisions; and accountants are the ones who produce and provide this information. They can also help interpret the meaning of reports and suggest ways to use them to solve problems.
Let’s discuss exactly what a company tax accountant can do for your business.
Responsibilities of a Company Tax Accountant
Ensuring your business is complaint with tax requirements is one of the core responsibilities of a company accountant. Further, a good accountant will offer more than simply preparing financial statements. We have broken down the core responsibilities of a business accountant:
- Produce financial statements, including balance sheets, and profit and loss
- Prepare BAS (business activity statements)
- Liaise between you and the ATO
- Prepare and file tax returns by required guidelines
- Provide tax and financial advice to you, as well as recommendations around business legal structure and setup
- Set up new legal entities, including companies and partnerships
- Answer tax and finance questions
- Create cashflow reports
As a result, this saves your business time and stress.
Financial Functions
A company accountant performs financial functions, including:
- Collecting and recording finances
- Analysing business finances
- Presenting financial reports
- Ensuring the accuracy of business financial reports
In a smaller business, an accountant may primarily collect financial data, as well as perform financial entry and report generation. Bigger companies may require their accountant to be an advisor and financial interpreter, as well as present the business’ financial data within and outside the business. Further, an accountant can also help manage third parties, like vendors, customers, and other institutions.
Company Tax Accountant and Financial Data Management
Having an excellent accounting structure is essential for any business. One of the primary roles of your accountant is to create this structure through the collection and maintenance of financial data. An accountant also ensures financial records are compliant, as well as keeping records in pristine condition. Managing financial data for an organisation includes developing, implementing and maintaining financial data bases, and monitor control procedures.
Business Accountant Advice and Analysis
Accountants are great analysts. As a result, they can assist you in making important business decisions, from basic supply ordering to the payment of bills. They can also advise on business operations, revenue, expenditure, and financial commitments
Their recommendations can help you develop efficient resources, procedures, and strategies for specific financial problems or situations.
Accounting also plays a significant role when evaluating the viability of investments. An investment demands a careful analysis of costs and projections for future cashflow. Your accountant will analyse figures for each possible investment, calculate the rate of return, and present findings to management.
Further, an accountant can help you in the planning process, providing projections on cash flow, sales planning, projecting inventory levels, and purchasing fixed assets.
Your Company Tax Accountant and Regulatory and Reporting Compliance
A company tax accountant is also responsible for ensuring your business makes all financial reporting deadlines. They ensure that all filings are accurate, and on time, to avoid fines and penalties.
Internal Accounting
Your company accountant produces important, internal reports for management and decision making. They are specifically adapted to the purposes, and needs of individual managers. These internal reports are rarely released to third parties. They include:
- Aging accounts receivable
- Inventory levels
- Monthly sales
- Status of accounts payable
- Budgets
- Forecasts
Budgeting and Cost Control
Budgeting and cost control are essential to running a successful business. Your accountant uses historical data to form the basis for future budgets and cost controls. This information also allows managers to prepare overhead expense budgets and sales plans, as well as cashflow projections. Further, your accountant can monitor regular accounting reports to make sure costs stay within budget.
Manufacturing companies also use cost accounting to calculate the cost of making products, determining break-even sales volumes, and set optimum inventory levels. Managers use data regarding the cost of their products, in order to develop pricing strategies that allow the company to make a profit.
Want to know more about how a business accountant can help you? Contact the team at Siragusa today to find out how we can help improve your business!