No matter how large or small your company may be, it is critical that you have a dedicated accounting department. Ideally, it will be staffed by a person or group of people who understand basic accounting principles and how they apply to your business. Whether you choose to hire an in-house staff or decide to outsource this function, you won’t be able to survive without a good accountant on your company’s payroll.
Your Accounting Department Can Identify Wasteful Spending
An accounting department will do more than just create payroll checks and collect invoices. In addition to those tasks, it can take a detailed look at your company’s expenses to find ways in which the company may be wasting money. For instance, it may be paying workers more than the industry average or putting too many workers on the sales floor during slower times of the day. Identifying wasteful spending and making adjustments can save a business thousands of dollars or more per year.
Accounting Professionals Can Create Financial Records
If you are looking to get a bank loan or want investor capital, it will be necessary to reveal information about the company’s financial health. For instance, a lender may want to know how much money the business has made in the last quarter or what its future projections are. Investors may want to know how many customers the company has or how much it costs to acquire those customers. An accounting team can gather that information and put it into a format that lenders and investors understand.
You May Not Be Qualified To Be an Accountant
There is a good chance that you aren’t qualified to work as an accountant. While you may have basic math skills, accounting requires a sophisticated knowledge of accepted reporting and other best practices. If you oversee a growing company, it may not be enough to have an accounting software program helping to manage your books. Instead, it may be best to have a boutique consulting firm to oversee this department.
An Accountant Can Help With Compliance Issues
If your company operates as a corporation, there are likely monthly and quarterly forms that must be supplied to the government. Furthermore, sales and other taxes may need to be deposited regularly. Those who operate as a publicly traded company may need to submit regulatory filings with the SEC as well as state oversight agencies. While you may have an understanding of what your obligations are, it may still be easier to have a dedicated team ensuring that you are compliant at all times. Even a small mistake could result in a large fine or a tarnished public image.
A business is generally more successful when it has good people at key positions within the organization. Therefore, it is in your best interest as a business owner to hire a dedicated accounting team. This team can make it easier for you to focus on growing the business instead of worrying about financial or compliance issues.