An accountant is a major player in any business whether large or small. He/She is tasked with the responsibility of monitoring and recording the flow of money in the business.An accountant is expected to verify money transactions and ensure that they are legal and adhere to the set guidelines regarding accounting procedure. Therefore, an accountant helps the employer to engage in fair business practices by advising him/her on legal requirements of their business. This information will also help the business owner to file legal reports and also produce them when called upon to do so by authorities.
Through the use of financial statements and numbers, they help companies, individuals to describe the health of the business, by using their skillset in finance, math, law and accounting.Accountants will analyze profits and losses for your business, thereby providing information that you require in order to evaluate the performance of your business over a specific period of time, especially for business owners with inadequate accounting knowledge to prepare financial statements such as balance sheets and income statements.
An accountant will also help someone to analyze their revenue and expenditure. Analyzing revenue and expenditure is important to the business owner since it helps in the projection of future revenues and expenses . With that kind of information, the owner will be in a better position to develop appropriate budget levels by following a recommendation from the accountant.
An accountant will also identify accounting discrepancies that may exist in someone’s business. It is difficult for business owners to identify such discrepancies since most employers lack advanced accounting knowledge. Such vital information can help someone to prevent losses in their business, that would otherwise, be incurred without the help of an accountant.
They can also help employers to prepare monthly payrolls for other employees in the business. In the event financial transactions do not add up, the employer can inquire from the accounting team. This makes accountants liable for financial transactions in the business that might have been done in bad faith.