Why it is important for businesses to hire a great accountant?

Tolu Osinowo, CPA
10.04.19 12:03 PM Comment(s)

There's a reason why the big corporations invest heavily in accounting.  From day-to-day accounting, payroll to month-end accounting, to internal controls, cost accounting and auditing, all these are accounting that affect every business. You use it in every area of your business.


When you plan your sales by determining how many customers you want in a month and back trace that to how much marketing to do, that is accounting. Clearly, accounting helps you in your sales and marketing. It also helps you understand your pricing - are you charging too much or too little?


It helps you understand your tax obligations, what deductions can you get? You might have a sense of what your business brings in, and what your expenses are, but when you do the actual accounting, the picture is often vastly different from your "sense". You might discover you have more expenses than you thought and therefore your taxes can be much lower. Only a good accountant can help uncover the true revenue, true income and your true taxable.


A great accountant will help you establish accounting routines in your company in these three ways: 

1. What are the things you, as the business owner, need to do to fully, uncompromisingly, capture absolutely all the expenses your business incurs? If you are a small business owner, this is an incredibly tough process and ongoing learning that only a great accountant can support you in. 

2. Establish the accounting processes inside your company insofar as weekly, monthly, yearly routines to ensure timely accounting data and clean books. 

3. Capturing accounting data correctly, consistently, ie by coding the same transactions the same way, every time. For instance, when paying United Postal Service (UPS), a well-known vendor in shipping and postage, but which also offers copy and printing services, a poor accountant might enter the name twice as two different vendors, one under UPS and again under United Postal Service, and code the expenses under two different accounts (postage and copy/printing).

 When problems like this, (and much worse), are rampant in your books, it becomes a BIG problem, and quite frankly, your books become useless in utilizing it to run your business. This means your sales numbers, pricing, and marketing efforts are affected. This does not work.

 

A great accountant will provide help in compliance with all local laws, rules and regulations regarding your business. Beginning with how you organize your business to be compliant in state in which your business is registered as well as to reap the maximum tax benefit and what is most ideal for your business industry and business model, these must all be considered by your accountant. What to consider are also recurring tax filings that if missed can at minimum create huge penalties, and at worst, create criminal and civil liabilities. Again, these are things a great accountant will be able to advise you on. 

I advise tax filers and business owners to seek the help of a great CPA.  At T Osinowo CPA, Inc, we can help you in all these areas. Contact us. Phone: 346-291-3411. Email: info@tosinowocpa.com



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