In finance and accounting departments, you will come across posts like bookkeeper, accountant, controller, financial analysts, VP of finance, and CFO. How do they help their organization? What are their job responsibilities? Can they help grow your business? How your organization benefits if you outsource your finance and accounting jobs to an outside accounting firm?
Running a business involves lots of financial transactions and processes. There are invoices, salaries, expenses, incomes, and other financial matters. You have to generate financial reports from your account data, analyze your business operations, and order different types of supplies. A startup company generally does not have a trained and certified accountant to handle its financial transactions. This job requires a person who has training and experience in accounting.
The transactions with your customers, suppliers, and others will become complex as your business grows. The volume of sales will increase substantially. You will see the growth and profits, but soon you will start viewing trouble due to poor accounting practices. This is where the new business owner starts feeling the need for a professional accountant. Assigning this job to someone who never had any formal training in accounting can be detrimental to the health of your business. People who have not studied accounting face difficulty in understanding it. They often make errors that prove costly for their organization.
Accountants are hired when the transaction process becomes difficult to manage. It becomes necessary to hire a professional accountant to manage the accounts payable, accounts receivable, payrolls, and other financial transactions. There is a professional to handle the finance and accounting functions. Now you will hear words like account reconciliations, accrual, month-end, and year-end financial statements, and other accounting jargon. Now your organization requires a trained and certified professional accountant.
Establishing the accounting department becomes necessary when you feel the need for a Controller. This professional is capable of handling more sophisticated accounting and financial jobs. The professional can prepare the necessary budget, forecast economic trends, analyze financial data, prepare financial reports, develop proper accounting processes, and manage the relationship with the accounting firm. Now you will hear words like audit, compliance, review, and GAAP. The robust accounting procedures are put in place, and analysis of financial data becomes essential.
It is time to appoint a VP of finance for financial analysis. There are some jobs that require business intelligence expertise. Now the business model becomes complex, and there is a need for interactions with the investors and lenders.
A CFO is appointed after establishing the finance team. Now the focus shifts to future strategies. It becomes necessary to identify the new business areas for growth. Determine the business goals and develop plans for the future. The CFO has to focus on strategic planning, interact with the executives, forecast business prospects, and connect with the capital market.
Outsourcing Account and Finance Jobs
If any of these tasks look complicated and intimidating to you, think of hiring the Ribeyre Chang Haylock team. The firm has experience in all sectors of accounting and finance. We offer you customized services. You can hire us only for the services you need. You do not have to devote unnecessary resources to hiring the staff for the accounting jobs.
We offer services of experienced and talented accountants and financial experts. They will complement your accounting staff. At the same time, we have the capacity, resources, and staff to handle all jobs of an accounting department in an organization. We can offer you services of all accounting professionals, from CFO to accountants, at short notice and only for the periods or projects you need them. Contact us if you need the services of any staff for accounting and financial jobs.
Will your business ever need to hire an accountant?
A new business may not have enough paperwork to justify hiring someone to check all the numbers, and there is little legal recourse to spending money. It is pretty simple to do your accounting when the receipts are few, and all spending goes out of a single account. The need for verification does increase with the scope of a business, and creating a small corporation means being responsible with other people’s investment.
The nature of the business strongly affects the need to bring in an accountant. Self-employed people often get away with relatively lax finances because income is personal, and so are expenses. The situation changes whenever securities are sold to investors or whenever an employee is hired. While online websites exist for filing individual taxes, handling receipts for a complex business is often beyond these services. Interested parties need to see an appropriate accounting ledger.
It is easy to end up in trouble when counting receipts and miscellaneous expenditures. It is easy to trouble people who want to know what is going on with their investment. Having an employee is also legal trouble because of all the related fees such as taxes and insurance. Accounting gets real serious when payroll taxes and liability gets involved.
Another point is that an accountant can give excellent advice before starting a business. They have worked with quite a few businesses in the past and understand a wide variety of financial needs. Not only can they balance books but understand a lot of ways to cut expenses or else to prepare for the costs and revenue shocks of attempting to run a business.
A company needs its finances to be documented and handled professionally. This is to reassure people and institutions who have a legal and financial interest in the accounting of a business. Some paperwork can be handled directly by the owner, while others are better handled by an employee or a professional third party. The worker needs to be certified in public accounting.
The first step is to get in contact with a real accountant or consultant who is certified in accounting. Finding someone should be a priority before starting a business if a fair amount of money is at stake. Some financial experts bill themselves as consultants, but most advertised accountants also know a fair bit about the business. Having a good plan for creating a business and allocating capital is important.
These financial experts can help to develop a chart of accounts. This is tailored to the business being built and is apart of the whole business plan. These consultants will tell you what they expect and what you will need to do before they examine your business again. They can recommend accounting software and perhaps other consultants.
The second step is to start running the business and keeping track of receipts in the meantime. Partly this means keeping a tab on electronic accounts and separately it means keeping all hard copies of receipts and immediately recording sales in a ledger. Expenses are important, and income is very important for accounting.
Services such as a bank account and online shopping accounts do allow the spender to review an accurate history, but inserting expenditures into the books as soon as they are made is good practice. One example of different payment methods are writing checks versus using a credit card number for online payments. A lot of customers or vendors still accept checks as a harder solution to running a card scanner.
Making sure that all the numbers are consistent at the end of the month is called bookkeeping and must be maintained regularly for the entire lifetime of the business. Having a neat and updated ledger is key to answering financial questions whenever they arise and are also key to impressing investors and debtors as to the profitability or solvency of a business, and a professional accountant can help with this. Professional experience shows that up to 95 percent of companies get professional assistance for their finances.
The good news is that there are many options. Many people have simple certificates in accounting, and many freelancers are available to do basic bookkeeping. This is possibly the best option for a small business that does not have complicated finances and does not yet need the more expensive services of a seasoned financial expert. The only thing that matters is that all the receipts have been kept and can be counted.
The need for financial services depends on the workload. A startup with just a few customers might at best need an accountant once every few months. With a growing workload, hiring a freelancer accountant might become a biweekly or weekly affair. Freelancers are very convenient because they substitute for employees.
The flip side is that growing businesses have traditionally hired secretaries that were able to both make payments and balance books. Such a traditional role has historically created the opportunity for embezzlement, so it very much pays to hire someone to balance the books and make all purchases in person.
The final step is to turn numbers into financial statements that can be inspected by investors, creditors, and the tax collector. A good idea of a company’s numbers is also essential to strategic planning. While revenue will vary every year, growth can be predictable enough to conclude optimal investment. This might mean increasing inventory or expanding capacity by hiring new workers.
You have decided to start a small business with a limited budget. In such a case, it becomes necessary to find all possible ways to save money. How can you stretch your business investment fund? Which expenses can be cut without affecting the health of your business?
Accounting is one area where you can save money if you do it yourself. It can be a good way to save money if you understand business financial practices and have a background in the field of accounting. However, if you lack expertise and experience in account keeping, this is not the right course of action. In place of saving money, you may incur expenses in damages and claims. Poor financial record keeping will affect your business negatively. It will damage your future business prospects, and your brand reputation will suffer.
What are the advantages of hiring a professional accountant? Will this professional deliver on the promises? The following information will help you decide if you should go ahead and hire a professional accountant for your business.
How Does an Accountant Help an Entrepreneur Starting a New Business?
You have to take several actions when starting a new business. Some robust systems and setups should be established to ensure your business has a solid foundation. It will increase the prospects of your business venture succeeding. An accountant can help you in several ways when you are starting a business:
- Determine which business structure (partnership, corporation, LLC, or sole
- proprietorship) is best for you.
- Analyze your business plan from the perspective of an accountant.
- Help select the right accounting software based on your business needs.
- Help open a bank account for business.
- Make sure your accounting practices comply with government regulations.
- Guide you in tracking daily business expenses.
- Educate you on keeping business and personal accounts separate.
- Help with some types of regular business operations.
Once you start your business operations, keep using the same accounting system that your accountant set up for you. Your accountant may take some specific actions to assist you. These actions and guidance may include:
- Help you identify the independent contractors and avoid classifying them as
- Explain your business financial statements to you in simple terms.
- Manage your payment and payroll processes.
- Help determine the taxes applicable to your business.
- Determine the entities who should receive 1099 and W2 forms from you.
- Create financial reports and close your books at the year-end.
- Handle all paperwork related to the taxes, financial reports, and IRS.
Help at the Growth Stage
A professional accountant will become an integral part of your business. The professional will provide valuable services and guidance to keep your business accounts in order. The accountant will help you in the following ways during the growth stage of your business:
- Help you discover the possible growth areas by providing you insights into business financing, pricing, inventory management, and cash flow patterns.
- Advise on equipment and property purchase and leasing.
- Prevent IRS audit of your business.
- Help you when an audit is due.
- Create business financial forecasts that let you take better decisions.
- Help prepare the business budget that meets your business goals.
- Provide advice and support if you decide to sell your business.
These are some of the services accountants provide to the small business owners. You can hire an accountant to handle all financial activities or only specific tasks of your business. It all depends on your specific account and bookkeeping requirements. A certified accountant provides invaluable services at the time of starting your business. You can hand over your annual reporting, regular bookkeeping, and other accounting jobs to the accountant. It leaves you to focus on your core business. You avoid mistakes that new business owners often make when they try to handle their accounting jobs by self.
As a business owner, you should know when to seek the help of a professional accountant. Keep your financial records to comply with the tax and financial laws. Your loan and fund applications will elicit positive responses from the banks and investors if you have maintained your financial records properly.