Why is an Accountant Needed in a Company? – What is Accounting? Accounting is the activity of recording, processing and presenting data, ranging from transactions and events related to finance to the formation of financial statements. In the accounting classification has a purpose and usefulness, its own activities to achieve relevant information.
Accounting can also be said as a form of accountability for funds entrusted to a company by fund providers such as shareholders or investors. That is why it is important to present financial information relating to the trust fund through the accounting process. In order to fulfill the obligations and rights of each party related to the business activities of a company.
The Importance of an Accountant for a Company
1. Helps in evaluating business performance.
Financial records that provide a clear picture of the company’s operations and financial position will help better understand the company’s financial status. Accountant not only helps pay attention to your expenses, gross margins, and net income, but also helps allocate your budget correctly by comparing previous data.
2. Ensuring legal compliance.
The right accountant will help keep legal complaints when it comes to business. Liabilities such as GST, income tax, pension funds and others will be handled properly. Non-maintenance of books and accounts is a violation of the law that can be punished. If the company fails to comply with legal compliance, the company will incur a large penalty.
3. Make the right budget and future projections.
Business financial records play an important role in terms of budgeting and futuristic projects. Previous financial data is used to provide a basis for business trends. With the right financial records, it is possible to make business decisions regarding budgeting and the commencement of future projects.
4. Make a financial report.
An accountant plays an important role when submitting financial statements with the Registrar of companies. Financial statements are needed, among others, for stock exchange and also for the purpose of filing direct and indirect taxes.
Financial statements build trust in a company. The company’s financial statements act as a basis for investors to decide whether to invest their hard-earned money in the company.
Outsource Accounting Service
For newly established companies or for start-ups with an accounting team not yet in place, using an outsourcing accounting service can be an option with the following advantages offered.
1. Reduce company expenses.
Many company operating costs can be saved when you outsource a company’s accountant services. Outsource accounting services will be relatively cheaper than hiring a full-time accountant. This will help save funds for the company’s future needs.
2. Minimize the Risk of Fraud.
Outsource accounting services will reduce the risk of fraud that is sure to occur when you have an internal team that takes care of your accountant services. Professional accountants will ensure to provide good quality work and are responsible for the transaction process.
The right accounting outsourcing service will help you handle financial problems better. Accounting requires accuracy and good quality work. When you decide to outsource your accounting services, you will find more time to work on your business growth opportunities.
At Indoservice, we have a team of dedicated professionals who will work with your business accounting needs. Our reliable team will provide quality services that suit your needs. We can also do accounting services online. Contact us now for a special offer.