Many first time business owners do not realize that an accountant is one of the most important business professionals they will need to help them run their ventures successfully. A large percentage of accountants are qualified to do much more than file tax returns, maintain financial records and generate reports. They are also invaluable business consultants. A good accountant will be able to interpret the financial and operational data of a new business and offer sound advice for further operations and growth.
Here is a more detailed look at what a qualified accountant can do for a new business:
General Bookkeeping
All accountants should be trained to maintain a business' financial records and to generate standard financial documents or reports. They can also assist in opening a business bank account and setting up a direct deposit system for vendor payment and employee compensation.
Compliance with Government Legislation
For the first-time business owner, trying to navigate the sea of government-based rules and regulations may at best lead to some confusion and at worst the loss of a lot of money. Most accountants, especially if they are Certified Public Accountants (CPA's), are familiar with several areas of corporate and tax law, and they keep up to date with any pertinent changes to the legislation. They can assist a business in several ways including: determining the appropriate business structure for a venture and assisting with its setup, taxation registration and lodgment, and filing corporate tax returns.
Tax Planning
In addition to standard tax reporting, a good accountant should be able to offer general tax planning advice to maximize business tax deductions, such as when and how to acquire equipment.
General Financial Consulting
As stated above, an accountant can be a valuable business consultant offering counsel on cash flow management, inventory management, price control, and suitable finance options for a new or growing business.
Advice on Technology
There are many powerful software applications, services, and business tools on the market these days that cater specifically to small business needs. Armed with this technology, small businesses are getting a leg up on even their big business competitors. A good accountant should be familiar with the major accounting software packages and services, such as MYOB, Peachtree, and Quickbooks, and should be able to offer advice on bringing this technology into a business.
Networking
If the accountant either lives or works in the local community, then he or she can be a vital source of business and financing contacts as well as other community connections.
In short, there is much that a good accountant can do to enhance a business' performance. Knowing what to look for from the begining can help to ensure that the business gets the most for its money.
Susan Brown - Susie Brown is a small business consultant and freelance writer specializing in business and personal finance.
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