What is an accountant for?

Accountancy

What is an accountant for?
Even if an enterprise has a simple structure, an entrepreneur must turn to an accountant for the development of an accounting system. Creating a good accounting system requires professional skills, especially in a growing company. The time was long gone when entrepreneurs could do everything themselves.

For example, One owner of a Greek restaurant in Montreal had his own accounting system. He kept the accounts of his creditors in a cigar box to the left of the cash journal, wrote down his daily earnings in the cash journal, and to his right, in another cigar box, kept receipts for paid bills.

When his youngest son finished his education and became a certified accountant, he was horrified by such primitive methods. “I don’t understand how you can do your business this way!” He exclaimed. “How can you find out how you make a profit?”

“Listen, son,” his father told him, “when I sailed here on a steamer from Greece, I was wearing nothing but pants. Now your brother is a doctor. You became an accountant. Your sister is a speech therapist. We have a mother a good car, one house in the center, and another outside the city. We have a good business, and everything is paid for. So add it all together, subtract the cost of my pants from it – and you will receive a profit that interests you.

Nowadays, no entrepreneur should start a business without resorting to the help of a qualified accountant whose services are really vital. As with the choice of a banker or lawyer, entrepreneurs must make every effort to find an experienced accountant. Often, however, businessmen view the role of an accountant as passive. In fact, accountants can do much more than just prepare tax returns. The most creative part of their work is as follows:

they develop an accounting system that best meets the needs of management;

they make changes in the accounting system as the company grows;

they help analyze financial reports to identify problems and development trends of the enterprise;

they facilitate capital inflows by preparing special financial statements for potential investors or lenders;

they help to predict the future of the enterprise, comparing current activities with financial estimates;

they help reduce enterprise taxes at both the federal and local levels.

An entrepreneur must search for a good accountant and find him long before he opens his business. Perhaps the best way is to find out the names of experienced accountants with a good reputation from other businessmen, and then choose from this list those who work mainly in small business and preferably in the same industry. It is best if it is a certified public

an accountant who received appropriate education and passed the tests of the state qualification commission. For the entrepreneur, this is an additional guarantee that the accountant is a professional. Note that only a certified public accountant can certify or officially confirm the correctness of the financial statements of this enterprise.

The art of financial management in a young company is therefore to strike the perfect balance between the speed of web reports and the accuracy of bookkeeping.