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Importance of Employing an Accountant in a Small Business
An organization that makes profit is a business. There are various staff required to run business. An accountant is required in order to run a business. An accountant is a person who is responsible in running an organizations finances. Since they account for all the finances of a business,they ensure it runs for along time. This article will discuss the advantages of hiring an accountant for a small business.
A business account is opened with the help of an accountant and they also help to manage it. 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. Tracking inflows and out flows of cash Is important. The accountant keeps the records of money in and money out. Business are advised on how tot to overspend by being trained on money management. Accountants are very important since they help the business not collapse due to over spending.
Accountants in small business enable the business to have a bookkeeping system that is used to run the day to day activities. With a system in place it easier to keep the finances of the business organized. Its easy to know the activities of the business without having to check each activity. The systems saves the organisations time and effort. Auditing the business becomes easy.
How people are going to be paid is organized by the accounts department. The accounts and HR departments collaborate in ensuring wages and salaries are paid on time. Accountants will calculate and deduct all the deductions necessary in order to avoid legal implications. They also remit the deductions to the government. Without the accountants it is hard to run the HR department smoothly
When it comes to filing taxes and making returns accountants are very important. It is common knowledge that failure to make tax returns is an offence that may lead closure of the business. Tax owed to the government is calculated and paid by the account department. The accountants ensure that the monthly and yearly tax returns is done . An accountant is also able to advise the business on all matters that revolve around task such as tax discounts and tax reliefs.
Businesses are started with the aim of making profits. Small or big businesses are opened for this reason. Accountants help in calculating the profit margins of the business. They also deduct the expenses so as to come up with the gross profit. 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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