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Importance of Employing an Accountant in a Small Business
A business is a profit making entity. When one starts business there are various staff that must include in the day today learning of the business. For a small business to run well it needs an accountant. An accountant is a person who is responsible in running an organizations finances. Since they account for all the finances of a business,they ensure it runs for along time. This article will discuss the advantages of hiring an accountant for a small business.
A business account is opened with the help of an accountant and they also help to manage it. When small businesses open, it is important that they have business account for business transactions only. Business finances and personal finances should not be mixed.
Tracking of business expenses is done by the accountants. Its important to know where money goes after it comes into the business. The record cash inflows and out flow. They are also able to advise the business on proper expenditure thereby preventing over expenditure. Accountants are very important since they help the business not collapse due to over spending.
Accounts department comes up with a way to run business finance smoothly by developing a bookkeeping system. Business finances are kept organized by the system. The system makes it easy to know the financial activities of the business. The systems saves the organisations time and effort. The auditors work is also made easier.
How people are going to be paid is organized by the accounts department. The accounts and HR departments collaborate in ensuring wages and salaries are paid on time. Accountants will calculate and deduct all the deductions necessary in order to avoid legal implications. They also remit the deductions to the government. Where payment is concerned in the HR department smooth running is enabled by the accountants.
Accountants are very key when it comes to filling and making tax returns. As we all know failure to pay taxes is an offence and may lead to the business being shut down. Tax owed to the government is calculated and paid by the account department. The accountants ensure that the monthly and yearly tax returns is done . An accountant is also able to advise the business on all matters that revolve around task such as tax discounts and tax reliefs.
The purpose of starting a business is to make profits. This is the key reason why businesses whether big or small are opened. The profit that the business makes is calculated by the accountants. Gross profit is also calculated by deducting the business expenses. The accountant will advise the business owners whether they are making profits or losses.

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