Posted By 
By Neil Coleman
(Sponsored Content)
Exceptional financial management is necessary for any company, whether large or small. As a business owner, you have your hands full with the operations and marketing strategies that should be implemented for the growth of your company. Fortunately, you can delegate finance and bookkeeping tasks to an accountant.
You have two options of hiring accountants for your enterprise. One way is to outsource it to a team of trustworthy certified public accountants (CPAs) like the experts from http://www.daviekaplan.com/. Another method is to hire in-house employees who can contribute their skills and previous experiences to monitoring this particular department.
Regardless of how you go about in recruiting accounting staff, here are the reasons why you should invest in them:
1.) They help you maximize profit early on
Accountants are beneficial during the early stages of your company as they can advise you on what business model will be most useful for your venture and help you set attainable goals. They can also help calculate the pricing structure of your products and services to maximize profits. Moreover, accountants know the ins and outs of the banking system so they can set up your account successfully and determine if you need to open a merchant account.
2.) They organize your financial reports
Your income statement or profit-and-loss account is a crucial financial document that showcases your business’ revenues and expenses during a specified time. By having an accountant onboard from day one, you can have the reports organized so that you can track your progress without difficulty.
Aside from the statement containing your profits and losses, these are two other essential financial reports that every business must have:
- Balance Sheet: This gives you a glimpse of your company’s assets, liabilities, and shareholders’ equity. Assets are the valuable things owned by your business that are already in cash or can be converted to currency. Liabilities, also known as debts, are the amounts of money you owe others, whereas shareholders’ equity is the amount that you would end up with if you sold all your assets and paid off all the debts.
- Cash-Flow Statement: This document details the company’s inflows and outflows of cash. It informs you if your company generates income or loses money during a period. Operating, investing, and financing activities can be found in this file.
These financial reports are vital for the compilation of annual reports. This document summarizes the performance of your business during the year and projections for the next twelve months. It includes audited financial statements that inform you and your investors about how well your company is doing.
3.) They save you from penalties
Your accountants can focus on the deadlines of government-mandated processes, such as taxes and social security contributions. The IRS can be exceptionally nitpicky about filing deadlines and audits. Penalties for delayed payments and filing can be such a burden. Save yourself from the stress of remembering all those deadlines by hiring a dedicated team of accounting staff.
4.) They lend a hand in making smart financial decisions
As a business owner, you have multiple roles to take on each day. Your employees would ask for solutions on company-related matters, such as who to hire among the candidates and what marketing strategies to implement this week. In every decision you make, it’s imperative that you have accurate information to make the right choices. Accountants can provide you with the exact state of your finances, which can help you assess your venture’s situation better.
5.) They facilitate your company’s growth the right way
Some owners get so overwhelmed when their businesses grow too rapidly that they make poor financial decisions. An accountant can help you plan for the future by giving you the situations that would happen if you were to add more items to your product line or branch out to new locations. They prevent you from making hasty decisions and taking significant risks that may not end favorably for your enterprise. This way, you can manage your growth successfully without falling into bankruptcy.
Conclusion
Accountants play a crucial role in every organization. They can lead you into the path of greatest profitability without compromising your standards. Numbers are a substantial way to measure the performance of your company. The expert eyes of an accountant can spot red flags and avoid potential problems in the business before they blow up into a massive scale.
Neil Coleman is a Certified Public Accountant and has been helping startup businesses make the most of their finances. As an experienced accountant, Neil believes that a business can thrive and succeed once it knows how to handle its finances properly. His article contributions to Davie Kaplan has been focused on this topic. During his leisure, Neil loves to play golf and go fishing with his friends and family.
