Accounting is the process of handling and recording financial and non-financial information of any organization. It is very important to ensure the efficient operation and management of your account system. In other words, accountancy is capable of managing the economic front of the business and presenting the results in various reports.
Every commercial corporation has significant functions like record cash inflows and outflows, evaluate the company’s assets and liabilities, pay salaries to employees and many more. These all are possible with the help of an accountant as they can effectively measure and summarizes the activities of the company. In addition, a professional accountant can manage a company’s financial performance and overall viability. With the help of an accounting system, a business person can reasonably keep data and information current and accurate.
The business accountants Gold Coast, plus specialists of other cities provide many different financial and taxation services to a different organization. Their list of functions includes payroll, orders, inventories, cash inflows and outflows, investment, control and all other financial elements.
So, let’s have a look at the following 5 amazing roles played by an accountant in every business:
Table of Content
- Handle Payroll Activities
- Manage Cash Inflow
- Keep Records Up-to-date
- Maintain the Inventory System
- Accounting for Fixed Assets and Property
Handle Payroll Activities
An important function of accounting is payroll, which is called gross wage or gross income paid to employees. The accountant department can measure all the profit and loss statements, bonuses, commissions, cash flow statements, and many more. They track and update workdays, holidays, and sick leave. Bookkeeping is the access to the information that records the financial transactions and other business-related information, which is contained in personal files.
Based on this information, accountants can calculate the amount of income tax, union fees, and other various gross income reductions in order to keep the accounting system of business well-maintained. The company needs to stay updated and calculate their various accounting norms according to rules, which are stated by the government. This concludes that payroll is an essential subject while focusing on business management.
Manage Cash Inflow
Cash inflow refers to that financial process where all profit and cash earned from sales, payments, financing, investments and other sources. All sources of cash should be identified and entered in the ledgers, where they are balanced with the expenses of the company. Bookkeeping keeps a detailed record of all receipts.
Accountants ensure that all cash receipts are accurately recorded in the correct business current accounts. They keep track of any amounts in the form of dues, including unpaid bills. In addition, they will clear all the invoices on time that customers have to pay. At the end of the term, accountants balance the chequebook to get the company’s annual profit or loss.
Keep Records Up-to-Date
In addition to payroll, a business incurs many different types of expenses throughout the year. The costs of buying and shipping, paying taxes, buying new assets, paying off loans for one purpose or another. The accounting department prepares all these checks and transfers them to the intended person for signature.
It keeps up-to-date records of all cleared payments and all outstanding payments. For smooth operation, the business must have good relations with suppliers. The business must make sure that all its payments are cleared on time otherwise its reputation may be affected.
Maintain the Inventory System
Inventory is a list of items that a company stores for the ultimate purpose of resale. It includes raw material, finished products and other semi-finished products. Bookkeeping is responsible for maintaining accurate accounts and ensures that the cost of raw material and overhead does not adversely affect the company’s cash flows.
Accountants must decide on balanced inventory levels for the company, that is not so high as to increase costs and not so low that customers remain dissatisfied.
Accounting for Fixed Assets and Property
Each company must have some long-term assets, such as land, buildings, tools and equipment, machinery, vehicles, and more in order to function effectively. A business must keep a detailed record of all of its fixed assets, tracking the depreciation that it undergoes over time.
This is both for calculating the tax payable to the authorities, and for controlling the use of assets. Bookkeeping is capable of handling and compiling these accounts. They are reflected in the client balance sheet, which is used to calculate the total assets, liabilities and capital of the company for any given period.
In this case, accountants can constantly update the financial statements of the company. In order to remain competitive in the market, every business needs to install the modernized equipment. It can be possible with the help of a professional accountant as he/she will keep the financial statements and balance sheet up-to-date in order to calculate the total value.
The above-mentioned functions show how accountants play an amazing role in every business. No business can operate without an accurate and timely payment to its employees or without a detailed account of its assets and liabilities, received and paid cash.
In a literal sense, a company will not able to work effectively if its accounting department does not perform these functions efficiently and on time. It is very concluded that a business accountant in Gold Coast can maintain a good accounting system and update it regularly.