The main work of accountants is assessing, recording and analyzing financial data for an individual, a business, or government institutions. By extension, they help prepare financial reports such as Balance Sheets, profit and loss accounts, and consequently give financial advice and recommend policies and procedures pertaining to accounting.
For an accountant to perform their functions effectively, they need access to certain information such as, but not limited to, your assets, liabilities, equities, expenses, and income.
As an individual, you do not need an accountant especially if you can handle your accounting needs yourself. However, if you have large amounts of financial transaction data or you’re a big enough business, then having an accountant is important in order to ensure your accounts are accurate and processed on time and to high standards.
As a business, you’re obliged by law to provide accurate financial data through accounting records and reports to the government. An accountant has extensive knowledge of best practices and will help you avoid errors that might land you in legal trouble. Furthermore, accountants will help you make better financial decisions through analyzing data as well as help you save on taxes.
Your business is in to make profits and if your finances are poorly managed, you risk running into losses. An accountant will create accurate financial information about your business and advise you on areas of improvement, recommend policies, and identify areas of weaknesses. Furthermore, starting a business involves a lot of tasks best handled with an experienced accountant to avoid errors that could plunge the business into losses. Furthermore, if you plan to expand the business, an accountant will analyze your plan and help determine whether it’s viable.
Depending on the type of financial information we deal in, you can check in with your accountant as regularly as you desire. However, it’s good to keep tabs on a regular basis to ensure everyone is on the same page.
Accountants have extensive knowledge on tax filing, pension, and salary changes. These all require expert knowledge in order to be well handled. If you have large sums of money such as an inheritance or a mortgage, an accountant will help you plan accordingly to avoid loss of funds.