What You should know about the Purpose of an Accountant and How they can Help You

There’s a common misconception among us about accountants – that they’re just bean counters, men and women who tally everything up at the end of the month and tell us exactly, in neat format, what our financial bottom line adds up to. But nothing could be further from the truth. Accountants are individuals who warn us of dangers, who save us money, who ensure our compliance with the law – and who often save the hide of our company and the livelihood of our employees.  But still, what exactly do accountants do?

 

Accountants give you organised information

That, of course, is the common conception: that accountants list down expenses and income and organise it, tabulate it, so they can give you the bottom line in a methodical manner. True enough, that’s what they do. But they do more – they provide income statements, balance sheets, ledgers, and reports that actually make sense. 1A good accountant will be able to tell you at any time of day or night how much you’ve spent on transportation, what profit percentage your goods are currently selling at, the turnover rate on inventory, and the net income between last week and yesterday. Accountants are organised – they put numbers into their proper place and can churn out useful information with a few strokes on a keyboard or a few clicks with a mouse.

Accountants keep the government at bay

Governance has its use – where would we be without it? But a government looking over your shoulder every quarter and at the end of the year can be a nuisance. It’s a necessity every business has to deal with, but accountants ensure that every little detail of your business is presented according to government regulations. An inspector from the Queen’s treasury who sees your books are in order and that your affairs are properly documented will be pleased to let you go on your way without a second glance. Accountants give you freedom and deal with the nitty-gritty that managers don’t often have time for.

Accountants save you money

Yes – accountants save you money. You have to pay your accountant, but the money you spend on a good accountant is returned exponentially when you think of how much tax you save, the risk reduction in decision-making based on reliable information, and valuable time spent properly because you have financial experts to bounce your ideas off. Your accountant is not just a person crunching numbers. Your accountant is your friend, a lifesaving friend at times.

Accountants give you tools

Your business will inevitably be bound by cycles – whether they’re yearly, seasonal, or monthly, your accountant is sure to be the first to notice this. Before making any decisions, consult your accountant. They should be able to tell you when you can expect a lot of expenses coming your way and when your income will rise. Your accountant can tell you which advertising was most profitable and in what month, and they will tell you why a certain decision did not give the proper results whilst other courses of action were extremely profitable. Your accountant will give you tools of measurement and invaluable resources for decision-making.

No, an accountant is not just a ‘bean counter’. An accountant is a person intrinsically involved in your business. They are your mathematician, your organiser, your protector, and your enabler – all rolled up into one. For more information about accounting and how to find a great accountant, especially when it comes to central London accountants, you can always visit GSM & Co.

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