Business owners most of the time feel the need of an accountant at the time of tax filing. But do you an accountant can add more value to your business.
In this competitive world, it’s very important for a business owner to maintain a cordial relationship with his accountant as he/she can advise or suggest ideas on product pricing, negotiation, investment etc.
So. let’s dig on the key role & responsibilities of an accountant in business growth:
1- Helps in in-depth business analysis
2- Helps in getting more revenue
3- In understanding business health scenario
4- Getting updated with recent tax laws & regulations
5- To save money on costs & expenses
6- Helps in tax preparation & business planning
- Helps in in-depth business analysis
An accountant deals with cash flow, business accounts management, tax filing etc. So. he has all the knowledge of money investment, revenue etc. A business owner before going for any investment should always seek his advice like whether to invest or not, how much should invest and where to invest. For example: If a business spent money on advertisement, PR activity etc. and the only accountant can tell how much revenue that business earned from these spendings as he has all details of cash flow. This way an accountant can help the business owner in doing an in-depth business analysis of where the money goes and how much earned out of it.
- Helps in getting more revenue
How an accountant could help a business in earning more revenue as he is not associated with business planning or business strategy? Let’s find out the answer. An accountant always tracks the movement of an each & every penny of a business. So he is the right person to suggest whether to increase the product price or not, during which period discount should be given to get most out of it etc. Now how would he be able to give answers to these tough questions? He has past as well as present business transaction data with him and he knows at what period company earns more in number in giving discounts etc. So, now we can say an accountant can help in escalating business revenue.
- In understanding business, health scenario
Business health can be depicted by analyzing business annual reports, balance sheet, and other financial reports. But mostly startup entrepreneurs & small business owners are from IT backgrounds. So its difficult for them to analyze & understand business financial reports. To solve this issue they always look for an accountant to make them understand these financial reports to know the financial situation of a business, which called business health.
- Getting updated with recent tax laws & regulations
Small business owners & startup entrepreneurs usually spend their time doing business analysis & making strong business marketing strategies. So, they don’t have time to keep themselves updated with new tax laws & regulations. Business owners & entrepreneurs can get all updated information from the accountant as he always keeps himself updated with various tax laws to do tax filing, return filing etc.
- To save money on costs & expenses
Every year business owners lost a lot of money on tax filing as they don’t aware about deductions, input tax credit claim, tax laws etc. A professional & experienced accountant would be able to save money on tax filing. So, entrepreneurs do proper scrutinize and hire a knowledgeable accountant to do tax preparation & filing in a proper way to avoid any money wastage.
- Helps in tax preparation & business planning
Last but not the least tax filing and managing business accounts is the main responsibility and job of an accountant. So, always hire an accountant who has experience in tax filing, preparing various financial reports & more. I hope all business owners & entrepreneurs who reading this article got an idea of the importance of an accountant & how to use their skill to maximize business profitability.
Still its also the responsibility of the business owner to provide best tools to the accountant in order to lessen his work burden. The best tool would be an accounting software as he mostly works on maintaining & updating accounts. First, find out a list of best accounting software in India and then select the best one. In this GST regime getting a GST accounting software is a must for easy & seamless accounting, as well as GST, return filing.