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Merit of Accountants in Small Business
Business is an entity that works to make and sell products or services for a profit. When one starts business there are various staff that must include in the day today learning of the business. A small business will require the services of an accountant in its day today running. An accountant is a person who is responsible in running an organizations finances. They are very important people who ensure that the small business becomes sustainable since they accountant for all its financial issues. This article will discuss the advantages of hiring an accountant for a small business.
Accountants assist the business open an account and manage the account on its behalf. Accounts for business operations only are important when small business start operations. Mixing personal finances with business finances is not advisable.
Tracking of business expenses is done by the accountants. Its important to know where money goes after it comes into the business. Inflow and outflow of money is recorded by the accountant. They assist the business not over spend by advising on how to properly manage the cash. A business may close due to overspending hence the importance of accountants.
Accounts department comes up with a way to run business finance smoothly by developing a bookkeeping system. Business finances are kept organized by the system. The system makes it easy to know the financial activities of the business. Book keeping system saves time and effort. The auditors work is also made easier.
The accountant prepares the payroll . HR and accountants work together to ensure employees are paid in good time. They also ensure that they calculate the deductions that are necessary so as to safe guard the business from legal issues. These deductions are paid to the government. Without the accountants it is hard to run the HR department smoothly
Accounts department is important since they help file and make tax returns. It is common knowledge that failure to make tax returns is an offence that may lead closure of the business. Accountants will calculate and remit the taxes due to the government. The accountants ensure that the monthly and yearly tax returns is done . The business is advised on tax matters such as tax relief and discounts by the accountants.
Businesses are mainly for profit making. Small or big businesses are opened for this reason. The profit that the business makes is calculated by the accountants. Gross profit is also calculated by deducting the business expenses. Whether the business in in profits or losses , accountants will be able to tell and advise the business owners on the next step.

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