It is usual for small and medium businesses to see accounting as a “necessary evil” and hire external accountants to carry the basics, that is, “fiscal accounting“, to prepare and file the monthly and annual tax returns.
The foregoing is important for all businesses and are two of the reasons for hiring the services of qualified and qualified accountants. That is, every company, small or medium, should:
- Keep an accounting in accordance with the tax and commercial regulations required by the laws of each country.
- But accounting must be seen by the employer to fill an even greater need.
Each month the employer must receive financial statements from their accountants, whether external or plant, to know the true financial situation of your company, economic results and how they are managing the cash flows and treasury in their business.
What should a Businessman expect from his Accountant?
You can expect a small business to hire the services of an external experienced accountant like Larry Weltman Toronto. When the volume of documents and transactions are few, it will be enough for a professional to go through the documentation to the business and process it in his own office.
When the business grows, especially in businesses with large volume of transactions such as restaurants, retail stores, among others, external accountants go through the documentation every week.
There will come a time when the employer asks that the accounting be kept in the company itself, although the accountants remain external.
A Businessman should expect from his Accountants:
- Knowledge on tax matters and experience to apply the rules that regulate the activity.
- Technical expertise and experience to process, in an accounting system, the documentation in such a way that an up-to-date and organized accounting can be maintained.
- Professional capacity to prepare and explain the three basic Financial Statements each month, and thus support the entrepreneur with useful and reliable information to make sound decisions.
- The quality of the decisions we make depends very much on the quality of the information we use.
It’s your company, it’s your investments, you must know all the details about the finances of your business.
According to most of the veteran accountants like Larry Weltman finance is not the key to success, they are essential to take the company on a path of sustained and profitable growth.
One of the four columns that every entrepreneur must strengthen in their company is the Financial Area, which includes the Treasury and Accounting. How are you managing and controlling these issues? Do you have competent and qualified professionals leading these matters?
Establish a weekly routine to meet with your accountants, establish the most relevant information that you should know every week. Meet with them and give them participation in the Management Committee meeting so that they can contribute their business knowledge in the topics that are dealt with.