Accountants are an asset to every sort of business whether on small or large scale. Those starting business on small scale have limited budget. So they need to figure out the ways to cut costs for ensuring maximum saving and hence investment. For any business there are three stages start up, regular operations, growth and expansion. During each phase, an accountant can better account for all assets, liabilities, income, expenses and related concerns. Following are the roles that an accountant can play for a small business during its different phases.
BUSINESS START UP
When a person starts a business, many actions need to be taken with setup of many systems as a foundation to ensure successful business. Accountants can help in this phase by:
- Figuring our business structure such as LLC, corporation, sole proprietorship, partnership etc.
- Carrying out financial analysis of the business plan
- Advising on the use of accounting software
- Advising and assisting for opening bank account for the business
- Ensuring compliance of accounting procedures with that of legal requirements
- Advising for tracking expenses during routine business activities
- Ensuring separate recording of personal & business expenses
In this phase accountants help by:
- Ensuring independent classification of work source such as independent contractors & employees
- Making owners understand financial statements with clear details of ins & outs
- Ensuring proper recording of payroll & payment processes
- Advising on the tax payments to be made during the year
- Closure of books of accounts and creating financials at year end
- Preparing & submission of tax returns, financial reports as well as necessary paperwork required
During this phase, accountants become integral source and provide advice with assistance for managing all processes. They also:
- Assist to determine growth areas
- Provide insights about cash flows, pricing, business financing, inventory management etc.
- Advise for purchase and leasing of property & equipment
- Help in going through audit procedures easily
- Prepare financial forecasts to facilitate better decisions in future
- Assist in creating business budgets for supporting business goals
- Advise and provide resource for boosting business sales
These are few out of many tasks that accountants can do for business owners at small scale. Accountants can monitor financial activities and provide a suitable approach for solving related matters. They are a true asset for such businesses because with their help small owners can expand their businesses.