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By Ellen Dec8,2021 #tax liabilities
tax liabilities

One might be thinking about why is it necessary to have an accountant to manage one’s business. Accounting is the detailed and systematic record of the financial transactions of a business. Woodward and Co business accountants in Brisbane help one manage one’s business efficiently.

Also Read: What can the performance planner assist you with

 Below is given in brief:

Role of Accountant: Accountants function is mainly collection, data analysis, accuracy, company’s financial operations, etc. Internal audit, statutory auditing and taxation are the roles of an accountant. Some of the roles are:

  • Maintenance of accounts: Financial book is essential for maintaining the records and data. This will help calculate the profit and loss and keep track of the business. Just maintaining a book is not sufficient. According to Brisbane’s accounting and law policy, maintaining a financial book is necessary. This book also helps in the future planning of the business.
  • Budgeting: Accountants plan and pre-prepare business activities to balance business expenses and incomes. The role of accounting is crucial while preparing the budget.
  • Taxation: Accountants manage tax matters of an entity, settle tax liabilities, file returns, etc.
  • Statutory Audit: A chartered accountant who manages the book of entities ensures the acceptance of financial statements in accounting principles, legal considerations and standards. The accountant also ensures a clear view of financial position through the financial information.
  • Investigation: The accounts also investigate the financial position of certain parties. Sometimes they do this themselves or can even hire a professional for it.
  • Advisory services management: Internal controls like advice, long-term plans, etc., are reported to the management. This is a significant responsibility of an accountant.

Why is accounting important in business?

Accounting is crucial for the smooth running of a business. It helps track expenditures and income, ensures legal compliance, and provides management, investors, and the Australian government with financial information used in making business decisions. The financial statements generated by the records include:

  • The income statement provides information about the loss or profit.
  • The cash flow statement reports the cash generated and spent in a specific period.
  • The balance sheet helps give a clear picture of the financial position of one’s business on a particular date.

Let’s discuss in brief the importance of an accountant in a business:

  • Evaluation of the performance in a business: Financial records reflect the financial position and the result of the operation. It provides a clean and up-to-date record of the financial status to help one keep track of their expenses, profit, gross margin, etc. It also helps compare current data with previous records. This will help compare statistics and give a clearer view of what’s going on.
  • It helps create a budget and future projections: Future and budget projections are the make or break of businesses. Financial records play a significant role here. These projections are based on previous financial data to keep one’s operations profitable. For an accurate database, an accountant is necessary.
  • Ensures legal compliance: Proper accounting processes and systems ensure business legal compliance. This accounting function ensures to mention liabilities like VAT, income tax, sales tax, pension funds, etc.

Finding the best accountants can be a task for many. Well, Woodward and Co business accountants in Brisbane are here to help one. They have a group of professional accountants who are experienced and assist one with the smooth functioning of their business. One can trust them, and they would see a positive growth rate in their business eventually over time.

By Ellen

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