The accountant presents company’s financial figures to people within and outside of the organization. Most of the time, the accountants may also deal with third parties, such as investors, vendors, shareholders, customers and other financial institutions. Many functional areas are covered under the role of an accountant. Here are some of the functions performed by an accountant, such as:
- analysing budgets and other financial information to ascertain the amount of savings.
- an accountant plays a major in setting up of accounting procedures and practices for new startups.
- preparation of budgets and cost savings strategies.
- preparation of profit and loss statements to ascertain the amount of net profit or loss.
- preparation of the balance sheet to ascertain the actual position.
- ensuring timely preparation and filing of company accounts and tax returns.
In a small sized business, an accountant’s role may be restricted to financial data collection, entry and report generation but they may also need to act as financial adviser and interpreter in the middle to larger sized companies. Hence, it is important and essential that the accountants to have extensive knowledge in accounting standards. Otherwise, they will not be able to perform their role correctly.
A bookkeeper is crucial for writing up the daybooks for your enterprise. The daybook consists of all the records of purchase, sales, receipts and payments and much more. It is the obligation of bookkeepers to make sure that all financial ventures are documented accurately in the supplier’s ledger, customer ledger, and daybook. The bookkeeper is also responsible to bring the books to the balance trial phase for a financial account.
In addition, most the financial data which is being taken care of by the bookkeeper will be made use of at the period of filing the tax returns. It will guide you to pay out the taxes without having any trouble, and the tax will be paid before its due. The paying tax matters must not be neglected as it can give a bad outcome on your business. The bookkeeper is also required to do most of the accounting task very effectively that you desire him to do.
Tips for efficient Bookkeeping
To have an effective bookkeeping, here are some suggestions for business owners:
- File your receipts by categories. A structured file of receipts will save you the trouble of finding relevant financial transactions. Bookkeeping will be quick and straightforward when references are in sequence. It will also provide you with the chance of comparing various suppliers and companies if your receipts are held organized.
- Find out the size of your business. In case you happen to be a starting a small business, you may pick to use an outsource company to complete the filing of your income tax papers.
- Outsource bookkeeping to professional firms that can handle your books with a different level of efficiency and excellence. There are a lot of advantages in hiring an outsourced bookkeeper to take care of your accounting and bookkeeping. Choose wisely by doing a little research about outsource companies before hiring one to handle your bookkeeping.