Lots of companies go through bankruptcy and liquidation on account of their improper accounting practices. An accountant performs an essential position in an organization since money administration is one of their key roles in addition to keeping proper accounting records for each and every activity. The reasons why a business needs an accountant are a lot and the next are a few of them:

Accountants make sure that monetary statements comply with the International Accepted Standards (IAS). Preparation and presentation of monetary statements follows a number of accounting standards which are accepted worldwide. An accountant makes certain that these standards are adhered to while preparation and presentation of the financial statements is being done. This ensures that the figures which can be offered within the financial statements give the accurate monetary position of the business.

Controlling of funds utilization is another task of the accountants in a business. Development of a system for internal control is the responsibility of the accountant. The system will prevent and management the embezzlement or misuse of cash in a business. It provides the guidelines on how transactions are to be dealt with thereby locking out any avenue that is likely to be used for funds misappropriation. Inner controls basically assist businesses to achieve certain goals, aims and tasks. Money management systems are crucial controls that companies have to develop. The accountant performs an essential role in attainment of this undertaking.

The opposite necessary reason why a enterprise wants an accountant is for taxation purposes. Tax planning permits the business to develop a plan for anticipated income in the years that follow. The plans may assist in the management of cash in a way that maximizes the companies tax benefits. The benefits of this embody spending less time in taxation processes and using the spare time in concentrating on different income producing activities. Timely filing of tax returns additionally assists the business in avoidance of penalties on late payment which saves some cash for the business. The enterprise will also be able to avoid overpayment of tax which implies that they will not have money that is tied in tax refunds.

Budgeting alongside with forecasting of enterprise revenues is capable of being prepared properly by accountants. This is attributed to the preciseity that the accountants have vast knowledge of operational prices as well as the flow of enterprise revenues. The above processes of forecasting plus budgeting permit the businesses to formulate projections of revenues into the near future. These formulations can lend a hand to the business to institute its development predictions in addition to planning for whichever anticipated disruptions which will happen in cash flows. This observe is normally founded on the idea of going concern which is part of the Generally Accepted Accounting Rules that each accountant is required to observe in the accounting profession.