A Surrey accountant plays a key role in the matters of commerce and business. Without the ability to accurately keep track of expenses and profits, a business would have no idea how effectively they were performing.
If a business has a good accountant and a well-designed accounting system it is possible to see what business practices are working and which ones are not working. If a product is not selling there could be a reason for it and perhaps a review of some of the expenses will reveal which advertising practices are working and which are not.
A review of advertising expenses might reveal an inordinate amount of ad expense in the wrong place. There may be an inventory problem that is slowing down delivery, which could affect profits. A good accountant will discover this and help management correct the situation.
They Help With Payroll And Taxes
Accountants also keep track payroll, offer tax advice, and monitor all financial matters on an ongoing basis. The day to day is scrutinized as well as the weekly, monthly and annual figures. All items and transactions weaves a story of progress, stagnation or setback.
A Surrey accountant is well versed with basic accounting principles, and today everything is computerized. When accounting used to be done manually, way back in the day, every thing was kept in paper ledgers and account books. Of course the process was very slow compared to today’s computerized systems, but the process is the same.
Assets and Liabilities
Keeping track of company assets and liabilities, or what is owned and what is owed, and profits and expenses to know the pulse of the business activity is the core of any accounting effort.
The accountant then needs to know how to interpret the results of all of the company transactions as reports are compiled and presented to management. Since the sole purpose of running any business is to make a profit, keeping a close watch in that area is a primary concern.
Tax management is another important function of the accountant and his or her staff. How the collection and payment of payroll taxes, income taxes for both Federal and state can have an impact of profits. If efficiency is not achieved in this process, it can directly affect profits.
Depreciation, proper leveraging of inventory, inventory timing, the way inventory is valued, either LIFO, FIFO or as received, can also have a very significant impact on profits. In fact, all of the accounting principles and techniques are used by the accountant to study, decipher and make adjustments in order to maximize profits.
Certified Public Accountant
An accountant will normally take business courses in high school and college, along with the standard accounting courses as a preparatory start on the career. In the USA, the additional scholastic and professional designations would include the CPA designation, or Certified Public Accountant, considered to be a preferred advanced designation.
Many CPAs will hang out their own shingle and go into their own practice and build a stable of their own clients. Accountants are certainly an important and valuable group of professionals who have a great deal to do with business success.