Importance of Accountants for a Firm

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Importance

Company Accountants play an important role in operating a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.

According to research, one of the main reasons that small businesses fail in the first 18 months of their business is due to Poor Financial Management. Many small firms do not have an accountant nor software to manage their accounts as they see the importance of accountants merely for the purpose of Filing Income Tax returns or for the purpose of license renewals whereas, there is much more to it.

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However, it should not be concluded that businesses are may be doomed if they do not have an accountant. Firms/ Companies may find it costly to hire an accountant, but they are not aware of the financial and non-financial benefits that they may get from hiring one.

If your firm/ company cannot afford or does not want to hire an accountant, you may outsource your accounting services to a firm that will handle your firm’s accounting services, file your tax and other statutory returns, etc.

Read Also: Importance of Outsourcing of accounting services

Company Accountants

Company accountants are among the most invaluable assets of a company. They assist the firm/ company in achieving their corporate strategies through analyzing their Financial Position and suggesting ways that may help in reducing the costs and maximize the revenues.

Company Accountants maintain a systematic and organized record of business transactions like where the company is generating income and where the company is spending. They do not just manage a company’s accounts but also look after other financial aspects like taxation.

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They may help the company efficient tax management while staying in the legal framework. Moreover, they also handle the company’s tax filing since they have knowledge of tax law. An accountant may save the company from future losses as well as penalties that may be levied upon the company for regulatory violations.

The brief list of activities performed by Company Accountants are listed below:

  • Bookkeeping i.e. keeping a record of all transactions that take place on a day-to-day basis in the company.
  • Analyze and reconcile bank statements with the general ledger of the Company.
  • Reconciling expenses with receipts and vouchers.
  • Keeping proper records of accounts receivable as well as accounts payables and maintaining a proper track of it.
  • Calculate the company’s taxes and file income tax returns for the company.
  • Prepare budget plans and forecast future cash flows.
  • Formulating Financial Reports of the company and reporting them to the company management.
  • Analyzing the Company’s Financial Health and suggesting possible cost reductions to reduce losses.

So, in short, company accountants help the company in efficient Financial Management to achieve overall organizational goals.

Outsourcing Accounting Services

Outsourcing is when a company or firm hires the accounting services of another firm or company to perform a certain function for the company or firm. Outsourcing Accounting Services means acquiring the services of an accounting firm to use their expertise to handle the accounting of your firm or company.

It usually includes everything from bookkeeping services to audit and filing of regulatory or statutory reports and Income Tax returns.

Nowadays, where every firm or company is trying to curtail their costs, outsourcing accounting services is getting more popular so that they do not have to hire a full-time accountant or create an accounting department to look after the financial matter of the company or firm.

Outsourcing Accounting Services has many benefits, some of them are:

  • You will have access to professional accountants who are well versed in their field; have in-depth knowledge of laws, rules and regulations, regulatory compliance, taxation laws and are up to date if there is any change in the laws or rules and regulations.
  • Cost reduction in terms of hiring full-time accountants
  • Cost reduction in terms of training your own accountants
  • Real-time access with no holidays, no sick leave, or any other holiday. You will have access to your accountant round the clock 365 days a year.
  • You will be relieved from the stress of filing your tax returns as you will have access to your personal tax accountant, who will file your Income Tax Returns.

Accounting Services offered by Fairview accountants at Watford:

Fairview Accountants is a group of highly competent, professional, and top-notch accounts who provide various accounting services to firms or companies. Some of the services offered are:

  • Bookkeeping: It is very difficult to keep track of all incomes or expenses of your business without having an accountant. We will provide you with access to a handy wallet where you will be input your income or expenses. Moreover, if you have access to the internet you can utilize our online system where you can enter your income and expenses. This way you can access your data from anywhere. This will enable you to efficiently and accurately do bookkeeping of your business and monitor the progress of your company.

We can help you generate any report that you may require from your data.

  • Year-End Accounts: Carrying out the year-end accounts is more than just playing with numbers. No matter what period you decide as starting or ending of your financial year, at the end of a financial year, it is very important to know what you have gained in the year and at what cost so that you have a fair idea about the direction of your firm or company at the end of the financial year. Our team of professional accountants look after detail of every income and expense incurred during the year including accounts payable and accounts receivable and make financial statements for your firm or company that will give you an overview of the financial position.
  • Personal tax accountant Watford: We will act as your Personal Tax Accountant and will help in filing Income Tax Returns. Moreover, as your Personal Tax Accountant Watford we will help you in availing tax exemption while staying within the regulatory framework hence increasing the revenue of your firm/ company.
  • Payroll Management: Payroll management is not merely generating a salary slip but instead maintaining an entire record of salaries, bonuses, deductions, income deductions, and much more. Our dedicated team will handle your entire payroll and will give you peace of mind by providing you with the best payroll services.
  • Audit & Assurance: Our team of highly competent accountants with vast experience in audit will help you highlight any discrepancies in the company accounts not just financial discrepancies but also any deviations from regulations that may lead to penalties or legal action against the firm/company. Fairview account will help you in Audit & Assurance.
  • VAT Returns & Corporate Taxation: Our team of experts can help you in efficient tax management and help you avail tax exemption for your firm/ company while staying in the regulatory framework.

It is difficult to find an accountant who is competent enough to carry out all accounting and related financial activities. Besides this, it is costly to find an accountant and hire a full-time accountant. Fairview accountants will help you find an accountant that will help you in efficient Financial Management, Taxation Management, Audit, and Assurance.

(1) Comment

  • Karan Bhalla October 8, 2021 @ 1:30 pm

    Thanks for sharing own exp. with us. I think this article is helpful for everyone.

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