The value of a small business largely hinge on the quality of business advisors that input into the decision making process of an organization. An accountant being the professional finance communicators that fluently speaks the language of businesses all over the world knows businesses more than all other business catalysts.
The modern day accountants do more than preparing the financial statements of an entity. They now acts as strategic partners of businesses thereby forming an alliance that will help propel the business to greater height. Accountants are like giants that vibrant businesses stand on their shoulders in order to have farther horizon.
Accountants through brainstorming with small business owners do come up with efficient, reliable and better way of re-engineering business processes. Just like businesses coaches that help bring out the best in your ventures, accountants using their business valuation techniques and fundamental analysis skills help filter the noise that infiltrate business environment thereby making it easy for entrepreneurs to identify good investment opportunities.
Just like compasses directs the journey of a treasure hunter in the wilderness, accountants directs every step taken by small business owners in the often rough road of business life cycle. Profitable companies do have their ups and downs and do need good people with verified analytical mind that is combined with business studies acumen which are picked up both from practice and professional training that would help the business they are representing overcome all sorts of hardship.
I have seen people question the value and importance of accountants in many ways; there argument is based only on the cost implication of employing an accountant. Well, when you consider the improvement in business processes that qualified accountants bring into the business, you will find out that the money that is spent in employing the accountant is a peanut when compared to the dividend that would be enjoyed by the small business. Some people even point to the fact that some accountants do steal, well who doesn’t steal when given the opportunity. Accounting frauds can be stopped if certain measures on how to prevent accountants from stealing can be followed.
WHY SHOULD I HIRE A SMALL BUSINESS ACCOUNTANT?
Knowledgeable in information management and processing: there is no doubt that information processing has become integrated into all types of businesses. You hire accountants for your small business as they are very knowledgeable in managing information system. Accounting information system acts as a major contributor to the overall information management of a company. Without employing an accountant, you will find it difficult to find someone who does not have the required accountancy qualifications and skills.
Accountants are trained to add value to businesses: accountants are trained professionals that are trained to add value to a business through investment appraisal process for example. Another way that accountants can add value to a business is by participating in developing management accounting tools like balanced scorecard that helps managers make highly informed decision.
Help to save costs: accounting as a discipline is centred on cost savings. This is typified in the philosophies of; JIT, TQM, etc. In lease or buy situation for example, accountant advices management on the best possible option that would save the enterprise money. Also, accountants bring in valuable input when it comes to cash management process to save money.
Add credibility to your business: the reputation of small businesses would be improved in the eyes of many when they are aware that someone with accounting training is on the leadership board to advice management on best practices. Banks for example would prefer extending loan facilities to entrepreneurs that have their financial statements prepared by a certified accountant.
Ensure the survival of a business in the long run: accountant analysis events using ratio analysis tools to analyse, interpret and evaluate business risks. In fact, ensuring the long-term survival of a business is an important role of accountants.
Protecting businesses from litigations (tax): tax preparation and filling of returns is one of the vulnerable areas prone to default. The law in some countries allows self tax assessment thereby making it possible for small business owners to makes mistakes that would them get involved in litigations.
Business planning: planning cannot be done rightly without the right information in the right format. Managers rely on accountants to provide valuable information that would aid them in making business planning and investment decision.
Qualities and qualifications of a small business accountant: accountants cannot do any of the above without being qualified and in possession of certain qualities. There are many professional bodies that a professional accountant can subscribe to, pass the relevant exams and gain the required experience. The Association of Chartered Certified Accountants (ACCA) is one of such professional accountancy body that one has to be a member before being able to deliver professional services. You can read up another article that has been written to discuss the qualities of a professional accountant before selecting an accountant.
If you have read through to this point, you would have appreciated the importance and value of accountants and their consultancy services in the overall success of a small business.