You hear about accountants a lot, especially during tax season. What exactly do accountants do, and why are they important to small business owners?
Managing your business finances correctly and efficiently can mean the difference between business success and failure. That is where accountants come in.
Where an Accountant Fits Into Your Business
Not all business owners are savvy in the accounting field, so they outsource their accounting work to professionals. This gives business owners the chance to focus on building their business without having to figure out the numbers. Professional accountants ensure your finances are being handled properly. They keep track of your financial transactions and make suggestions to help you make as much money as possible.
Although professional accountants assist you in managing your business finances, you should not rely on them solely for your financial success. Create a plan and note your financial responsibilities to keep everything in order. Be sure to understand your financial situation so you know what to ask and expect of your professional accountant.
Along the way, always follow up to ensure your accountant is providing the best quality services for your business. As your business grows, your accountant should adapt as well.
Accountant Job Responsibilities
Accountants deal with the ongoing finances of a business and handle the finances that are already completed and closed out.
The five basic roles of accountants include:
- Accounts receivable
- Accounts payable
- Financial controls
- Financial reporting
These reports give businesses an idea of their financial progress and current standing. This helps to analyze the growth of a business and gauge any changes that may need to be made for improvement. Accountants also handle the tax portion of a business, providing tax planning and advice.
Is There a Difference Between Accountants and Bookkeepers?
Yes, there is a difference between accountants and bookkeepers. Bookkeepers maintain records while accountants translate those records. Accountants interpret the financial data that the bookkeeper documents and compiles the information into financial reports.
Hire an Accountant From PL Bookkeeping Plus
Our professionals at PL Consulting and Bookkeeping Plus will assist you in tax planning, accounting, tax returns, and more. Check out our list of accounting services.
Don’t see what you are looking for? We offer diverse services related to business, tax, and financial related matters. If we cannot assist you, we will refer you to the right place. We keep strong relationships with many individuals and firms.
We are your go-to resource for bookkeeping and accounting services. Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client. Your ideas are unique to your business, and we understand that. We help you maintain good records and financial statements.