Why you should consider an Accountant

Why you should consider an Accountant

Every dollar counts for business owners, so if you don't know where you stand on a monthly basis, you may not be around at the end of the year. And while using do-it-yourself accounting software can help monitor costs, the benefits of hiring good accountants extend far beyond crunching numbers.

Potentially, they can be your company's financial partner for life, with intimate knowledge of not only how you're going to finance your next forklift, for instance, but also how you're going to finance college education for your family.

Before you hire one though, make sure you understand the four basic areas of expertise in a general accounting practice: Since an accountant should be knowledgeable about your business environment, your tax situation and your financial statements, it makes sense to ask them to pull all the pieces together and help you come up with a business plan and personal financial plan. Accountants can offer advice on everything from insurance (do you really need business interruption insurance or is it cheaper to lease a second site?) to expansion;how will additional capacity affect operating costs?. Accountants can bring a new level of insight, simply by virtue of their perspective. These are perhaps the most basic of accounting disciplines. While it makes sense for many business owners to manage their day-to-day records, an accountant can help set up bookkeeping and accounting systems and show you how to use them.
A good system allows you to evaluate profitability and modify prices. It also lets you monitor expenses, track a budget, spot trends and reduce accounting fees required to produce financial statements and tax returns. Accountants that provide assistance with tax-related issues usually can do so in two areas: tax compliance and tax planning.
Planning refers to reducing your overall tax burden. Compliance refers to obeying the tax laws. These services are most commonly required by banks as a condition of a loan.
There are many levels of auditing, ranging from simply preparing financial statements to an actual audit, where the accountant or other third party provides assurance that a  company’s financial information is accurate The best way to find a good accountant is to get a referral from your attorney, your banker or a business colleague. You can also check in with the Society of Certified Public Accountants in your state/province, which can make a referral.
While accountants usually work for large companies, CPA (certified public accountants) work for a variety of large and small businesses. Don't underestimate the importance of a CPA