What Does An Accountant Do For A Business?

If you own a business, you want your accounting to be accurate and up to date. When you're busy taking care of the day-to-day functions, you don't have the time or energy to worry that all of the financial documents and transactions are also being managed properly. This is why an accountant can help.

We're going to take a look at the benefits of hiring an accountant if you haven't done so already as well as how their duties differ from those of a bookkeeper. As we explore this, we'll also let you know how McNeill Financial Services can help your business.

How Do Accountants Fit Into A Business?

Accountants play a vital role in running a business because they not only help to track income and expenditures, but also provide investors, management, and the government with financial information that can be used to make business decisions. Accountants also ensure statutory compliance and that all government regulations are being followed. They assure that the proper financial statements are being generated by your records.

Income statement

Gives information about profit and loss so that you can see how much you're making versus how much your business is spending. You'll be able to see business trends with this statement.

Balance sheet

This details the financial position of your business on a particular date.

Cash flow statement

This is the bridge between the income statement and the balance sheet. It reports the cash generated and spent during certain periods.

While you could try to keep track of all of these on your own, you may make mistakes that could hurt your business. Hiring a reputable accountant to take care of your financial data can give you peace of mind that all of these things are being done properly.

Accountant Roles And Responsibilities

The typical daily duties of an accountant will vary by position and organization, but common accounting tasks include:

• Preparing and managing financial reports

• Ensuring accuracy of financial transactions and documents and making sure they comply with current laws and rules

• Evaluating financial operations to recommend best practices and identify any issues

• Prepare tax returns and ensure that taxes are paid on time

• Conduct risk analysis assessments

Accountants are also responsible for ensuring that their client's financial records are compliant with government regulations and tax laws. Accountants are also legally obligated to act honestly.

Are Bookkeepers Accountants?

Some people use the terms bookkeeper and accountant interchangeably, but there are several key differences between these jobs. Bookkeepers handle recording financial transactions and have at least an associate degree. They organize the sales, purchases, payments, and receipts of a business. They also record the information in accounting software to help you make sense of your transactions.

An accountant has at least earned a bachelor's degree in accounting and can interpret financial information rather than just getting it together. Accountants can be bookkeepers but not all bookkeepers can be accountants. You need to decide what type of financial help you want for your business so that you hire the right person.

Advantages of a bookkeeper

There are several advantages of having a bookkeeper. These include:

Saving You Time

Keeping track of all of your financial transactions and tax filings can be tedious. Having someone dedicated to taking care of these types of things can make all the difference.

They Can Spot Cash Flow Issues

When you hire a bookkeeper, they can watch for any cash flow issues. They'll look at your spending habits and make sure that everything is in check.

Keep Up to Date with Invoices

A bookkeeper will keep an eye on unpaid bills and make sure that invoices are paid when they're supposed to.

Advantages of an accountant

Hiring an accountant also has its advantages. These include:

Getting sound financial advice

When your accountant has all the financial information about your business, they can give you the best financial advice.

They can help you make the best financial decisions to make your business thrive.

Prevent tax penalties and fines

If you're unaware of when taxes are due or if your tax returns are processed wrong, it can result in penalties and fines. An accountant knows how business taxes work and can ensure everything is filed on time.

Provide security

A qualified account will know how to keep your financial information secure. They will use special software to assure you have the most secure, professional service.

Knowing your financial information and financial records are secure is reassuring for your business. Security is crucial for your business finances.

What qualifications do accountants need?

Accountants need a bachelor's degree in accounting or business to begin working in the field. Many accountants also have other types of qualifications and credentials that pertain to specific types of accountants.

CIA credentials

To become a certified internal auditor, a bachelor's degree and no less than two years of work experience in a field related to internal auditing are required. This can be in internal control, compliance, and quality assurance.

CFA credentials

Those with a Chartered Financial Analyst (CFA) designation have completed the CFA program and completed the work experience requirements that are acceptable. The CFA program is a three-part exam that tests the fundamentals of investment tools, wealth planning, portfolio management, and valuing assets.

CPA credentials

A CPA is a certified public accountant who is licensed by a state board of accountancy. Certified public accountants must pass the CPA exam and complete a specific amount of general accounting experience.

The two most important parts of becoming a CPA are passing the CPA exam and meeting licensing requirements where you live.

Do You Need An Accountant If You Have A Business?

While it's not mandatory to have an accountant if you have a business, it is strongly recommended. Business owners who have an accountant have more time to focus on their business and should feel confident that their accountant will be able to manage their finances accurately.

Accounting professionals can help a small business owner, or any size business run more efficiently.

Contact McNeill Financial Services For Your Accounting And Bookkeeping Needs

Whether you need accounting services or bookkeeping services, you can count on McNeill Financial Services. Our team is here to help your business run smoother, no matter the size. Call us today at [phone] or reach out to us online to learn more about how we can help streamline your business's accounting and financial services.