We’ve heard this line time and again. “Business Accountants are needed in all companies big or small, new or established.” Quite frankly, this is true and a well-accepted fact in the business world. Have you ever wondered what exactly do these individuals do? Whether you are the student choosing his or her options, a business owner looking for a professional to employ or simply a curious being with a mind looking for new information, this list is for you.
1. RECORDING AND CLASSIFICATION OF DAY TO DAY TRANSACTIONS
One of the basic tasks and duties of accountants is to record and classify all the transactions of the business. This entails knowledge in classifying accounts into assets, liabilities or equity and as income or expenses. Are they balance sheet or income statement accounts? Are they current or non-current? All these and more are dealt with by these individuals.
2. ANALYSIS OF FIGURES
Apart from the classifying or journalizing of transactions into the company books, they also take care of the analysis and interpretation of such figures. What does a low receivables to equity ratio signify? Are the prices of goods reasonable against its cost of production? Is inventory accurate and up to date? They do more than just compute, they also do a lot of analysis.
3. FINANCIAL PLANNING AND BUDGETING
Likewise, business accountants aid business owners and management in making their annual, semi-annual, quarterly and/or monthly financial plans and budgets. For every company, having a carefully laid out and studied budget is a must. You cannot simply have your usual operations without putting into mind if you have enough resources to fund it. Plus you have to know if you have access to such funds. This also includes proper and careful allocation of your resources to the different departments, operations and projects.
4. TAXATION AND OTHER GOVERNMENT DUES
Not everyone is well acquainted with the tax laws as well as the procedures and processes that come with it. You must already know by now that you risk getting penalized with fines or be put under serious legal consequences if you fail to follow the said legalities. Business accountants are well equipped in this area. They handle the filing, payments, and assessments and they also make sure that you meet the stated deadlines.
These are only four of the many responsibilities given to these professionals and even with only these on our list, it is safe to say that no business will thrive without a good accountant.