Business

3 Reasons Accountants Are so Important

Accounting professionals play a vital role in the field of finance. Generally, they’re responsible for all financial matters in your company and help various industries attain their financial goals. According to the U.S. Bureau of Labor Statistics (BLS), over 1 million accountants existed in the United States as of 2020. Furthermore, typical entry-level employees can earn over $73,000 annually. BLS also predicts a growth in job prospects for both for-profit and non-profit accounting firms. Therefore, your dreams are valid if you want to become an expert accountant. Here are three reasons accountants are so important.

1. They handle all financial queries.

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Accountants can perform several functions in your company, including tax planning, budget monitoring, and preparing financial reports. A huge part of these functions will depend on your business type, size, and the number of accountants you have on board. The overarching role is to ensure your financial assets are in safe hands, affording business leaders and entrepreneurs peace of mind as they go about their daily business transactions.

Efficient accounts management can be crucial to a business’s existence, especially for startups trying to establish a solid business foundation. According to Forbes, about 10 percent of startups fail in their first year, and about 70 percent more never get to the fifth year in business. This is because many businesses face cash flow and several other financial management challenges due to poor accounting principles.

Furthermore, small business owners, especially sole proprietors, often don’t have the financial muscle to manage the lucrative salaries of established accounting firms and professionals. A recent report revealed that about 53 percent of small business owners don’t have an accountant. In comparison, 27 percent of the respondents use traditional approaches to manage their accounts, leading to ineffective results.

No doubt, for owners of small to medium-sized businesses, it’s tempting to reserve efficient accounting as a function for high net worth individuals and companies. However, opting for outsourced accounting solutions can be a good idea. These experts use cutting-edge accounting technology and software solutions to manage accounts with no hassle. That’s an advantage of outsourcing you can enjoy. It improves scalability and saves you from recruiting and training permanent staff accountants.

2. They’re highly skilled.

Generally speaking, most accounting professionals tend to be graduates from accredited institutions. Most also hold a certificate from the State Board of Accountancy. Today, prospective students can enroll in accounting programs online, which familiarizes them with essential accounting principles and helps them ramp up competency at their own pace. The added flexibility of online classes works better for online learners who are actively employed.

3. They assist with future planning.

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Financial planning is key to business growth, and businesses thrive on effective operations measured by established key performance indicators (KPIs). To maintain your business efficiency in the future, you’ll need a good accountant and auditor. Generally, your business attracts auditing if you’re guilty of consistent mistakes on your tax forms or engage in excessive write-offs. Your accountant will ask specific questions about your business’s financial health and accounting procedures to ensure future growth. For this reason, having an accountant in your company early on can never be a miss.

Additionally, collaborating with your accountants can help you make real-time decisions to leverage opportunities in your industry. With these insights, you can buy inventory, attract capital investments and remain competitive.

Ultimately, accountants are essential for your company now and in the future. They’re the best people to consult about scaling and expanding your business. Their efforts can be woven into every area of your business, from customer service to human resource departments, thus, clearing the road for your business’s success in the future.

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