What are the Different Accounting Tasks an Experienced Accountant Can Manage?
What makes an accountant important to your business? What type of services can an accountant provide? How do you find the right person? These are few of the important questions we will try to answer in next few sections so that you can make an informed decision while searching for an accountant.
Importance of Hiring an Accountant
From ensuring timely tax remittance
to avoiding audit and examining financial health of your business, an accountant plays an important role in your business success. Let us go through some important task an accountant performs.
• Ensure Time Saving
• Help Get Tax Deductions
• Track Financial Health
• Avoid Sanctions and Penalties
• Facilitate Faster Audit
A competent accountant can help you save your valuable time while filing tax returns or submitting HST/GST tax remittance
by ensuring that all your paperwork is in proper order well before time comes to file the returns.
An experienced accountant can ensure your books are maintained properly so that any available tax deductions are not missed. Accountant can also ensure that returns are filed properly with relevant paperwork so that deductions are not disallowed by the CRA.
Tracks Financial Health
Accountant ensures that income, as well as expenditures are properly recorded so that you have a clear picture of how much you are earning. Thus, by properly monitoring cash-out and cash-in, your accountant helps you take better business decisions.
Moreover, properly maintained books of accounts becomes useful in case you are planning sale of your business or want to acquire more capital to fuel growth of your company. Thus, having complete documentation of past performance would assist in proper valuation of your firm.
Avoid Sanctions and Penalties
It is possible that you may have to face sanctions or penalties being levied by CRA in case accounts are not maintained in right manner. Thus, by having proper work process, an accountant will be able to ensure that you do not have to face such sanctions or penalties.
In case of an audit, if the books of accounts are maintained properly then audit will take much less time and you will be able to resume your business operations sooner. It is a fact that companies lose several productive hours when audit takes place and results in significant loss of business. Thus, well maintained books will ensure minimum loss of time.
How to find the right accountant?
By asking right questions you will be able to ensure that you are hiring right person for the job. Let us look at few of the important you must ask while searching for a competent accountant.
• Do you have other clients with similar turnover?
• Do you provide business advisory services?
• What is your professional qualification and experience?
• What is your fees and how it will be calculated?
• Is there any type of conflict of interest I should know about?
Thus, to conclude it can be said that accountant certainly has an important role to play in business success. Your responsibility will be to find the right person with required competency to properly manage your accounts.