Understanding The Role Of Accountants For Small Businesses

 

Hiring accountants for small businesses comes with a wide range of advantages due to the many roles and duties they perform in the workplace. Whether they’re maintaining the business’s financial records or offering valuable input when it comes to making decisions, accountants add value to small businesses in abundance. In this article, we’ll be exploring the many roles and responsibilities that accountants perform and understanding why they are so important in a small business. Interested in acquiring an accountant for your small business? At SureBooks, we’ve laid out the most important parts for you.

 

accounts-for-small-businesses-calculator-min

 

What Is The Job Description Of An Accountant?

 

When it comes to the financial management of a business, accountants are crucial. Accountants for small businesses are tasked with performing a variety of duties in the workplace that are focused on the financial health and records of a company. One of the main responsibilities that accountants for small businesses fulfill is interpreting the financial records to achieve success and growth.

 

Not only do accountants need to manage the finances of the business, but they also need to keep up to date with the tax laws and regulations that are constantly changing. Accountants ensure that the business is complying with these regulations by making the necessary financial and tax filings.

 

All in all, accountants for small businesses tackle all the financial tasks and are expected to help build financial growth. Additionally, they also help to recognize areas where processes in the business can be streamlined as well as supporting the overall daily operations.

 

Job Requirements For Accountants For Small Businesses

 

Before delving into the various roles that accountants are tasked with, it’s important to understand what the job requirements are for them. Typically, accountants for small businesses are expected to have three main requirements: experience and training, official certification and education.

 

At a foundational level, aspiring small business accountants must have a bachelor’s degree majoring in either accounting or an associated field. The level of education required for accountants differs from employer to employer. While some employers require an education level no higher than an undergraduate degree, others may prefer higher levels of education such as a master’s degree in accounting. Whether you choose to continue further pursue your studies in accounting or not, the most important thing is that you’re educated on the relevant coursework, namely auditing, accounting, business law and taxation.

 

In addition to the required education levels, accountants need to have prior experience and training in their field. Whether this experience is granted by other qualified accountants or by their employers during the training phase of hiring, it helps aspiring accountants to study and understand the procedures and processes that happen in a small business.

 

The final job requirement that is necessary for small business accountants when looking to be hired is having the proper licenses for accounting.

 

The Roles Of Small Business Accountants

 

Becoming a small business accountant is no small feat and comes with great responsibility. While the scale of work may differ to working in a firm or large business enterprise, accountants for small businesses have many roles and duties they fulfill in the workplace. Here are some of the most important roles that small business accountants are expected to perform:

 

Managing Cash Flow: One of the most important duties that accountants for small business are tasked with is managing cash flow. The cash flow relates to the money coming in and out of a business and provides a transparent view of the company’s financial health. Having enough money to stay afloat in a small business is crucial, which is why the management of cash flow needs to be monitored regularly.

 

Filing Financial Statements: In addition to maintaining the financial records of the company and spotting any potential mistakes, accountants also create annual financial statements. These statements ensure compliance with tax laws as well as provide employers with a comprehensive outlook into the financial health of their business. Financial statements are useful for various other reasons, such as mergers and audits.

 

Bookkeeping: Bookkeeping is a fundamental task for small business accountants. This role involves the organizing and recording of the business’s transactions, including all expenses, payroll and sales. Bookkeeping ensures that the business’s finances are up to date, accurately categorized and provides insight into the company’s financial status.

 

Budgeting: To best prepare for the upcoming expenses of a small business, accountants are tasked with budgeting. Budgeting includes the drafting up of budget plans for the business that are typically reviewed and adjusted according to the needs of the company. Having an accountant plan the budget for a small business is recommended over doing the work internally as it can use up a lot of energy and time.

 

Processing Payrolls: In a small business, many owners struggle with the management of payrolls as it can be a difficult process if you don’t have accounting experience. This is where accountants for small businesses play their part in processing and drawing out payrolls for other employees in the company.

 

Tax Compliance And Planning: Ensuring compliance with tax laws and regulations is mandatory for any business. Small business accountants perform several duties to ensure compliance, such as filing the business’s taxes thoroughly, planning for tax liabilities and helping owners better understand their tax duties. Failure to ensure tax compliance can lead to hefty penalties that the business incurs. Small business accountants not only ensure this compliance, but also help to plan the business’s financial strategy around tax deductions.

 

Preparing Audits: The audit of a business refers to the review of the company’s financial records that ensure compliance with official accounting regulations. Accountants review these records systematically, organize the documents and work together with the auditor. The accountant and auditor collaborate by assessing the documents together and resolving potential issues that may arise.

 

accounts-for-small-businesses-meeting-min

 

Skills Accountants For Small Businesses Should Have

 

While certain skills are not a prerequisite for becoming a small business accountant, they are helpful to have and can increase your chances of getting hired. If you’re hoping to become a successful accountant, we recommend learning these useful skills in addition to attaining the proper education and training:

 

Data Analysis: Accountants are working with numbers and fine print on a day-to-day basis, which is why the ability to understand and make decisions from financial data is incredibly useful. To make knowledgeable choices for the business, accountants need to have data analysis skills as it helps them to draw conclusions and create a plan based on the company’s financial data.

 

Accounting: It’s no surprise that a good small business accountant should have good accounting skills. Because accountants are responsible for the company’s finances, they need to have a good understanding of how the accounting process works as well as the many procedures that come with it. The more you know about the world of accounting, the more likely it is for you to get hired.

 

Business Knowledge: When it comes to the success of small businesses, every cent counts, which is why having knowledge about financial growth techniques bodes well for small business accountants. By understanding the world of business and the various practices involved, accountants can give business owners advice on how to increase their profits and progress their business. Additionally, accounting terminology and practices may seem complex to those outside of the accounting field, which is why being able to explain the business’s finances in a way that employers can understand is helpful.

 

Tax Preparation: As mentioned earlier, tax planning is a vital role that small business accountants perform. Having skills in tax preparation is a benefit for small business accountants as it makes compliance with tax laws and regulations easier to regulate. Skills in tax planning also give the accountant knowledge on the national tax laws and how to comply with them.

 

accounts-for-small-businesses-female-accountant-min

 

Why Are Small Business Accountants Important?

 

While it may seem like doing internal accounting work for your small business may save you money, hiring an accountant saves you money in the long run. Accountants help small business owners to understand the financial performance and procedures of their company, which, in turn, helps them to generate more profit. Accountants bring a range of benefits to any business, such as:

 

Allow You To Run Your Business Better: Running a small business is no small feat. It requires a great deal of time, money and energy, which should all be dedicated to the management and planning of the company. With an accountant, you’ll be able to focus solely on making sure the business is running smoothly without worrying about managing your finances. Accountants help business owners allocate their time to other important areas of the company, such as customer service and planning for the future of the business.

 

Save You Money And Resources: One of the biggest advantages that comes with hiring accountants for small businesses is the money that is saved in the long run. Hiring an in-house accountant for your small business may seem like a hefty expense at first, but the addition of an accountant means you’ll be able to earn more, save more, and maximize your tax benefits. Accountants handle all the financial data of the company, which means they’ll be able to find your opportunities for saving money as well as give you advice on how to manage your money in a more cost-effective way. Additionally, small business owners may not typically be privy to ways in which money is being wasted and how expenses can turn into ballooning debts.

 

Guarantee The Security Of Your Financial Records: Making sure that the sensitive financial data of a company is protected is a must for any successful company. Because the internet has become an especially crucial aspect of business exposure and, in turn, profit, accountants are useful for implementing cybersecurity for all your legal records, customer data and financial accounts. If left unprotected, hackers may be able to access your business’s financial data, which could be detrimental to the company.

 

Help You Achieve Clarify The Direction Of Your Business: By hiring an accountant, you’ll be able to have a better understanding of the path your business is on and the future of its success. This is because accountants can make revenue projections that account for industry developments.

 

The SureBooks Difference

 

In this article we have looked to clearly define accountants for small businesses, why they are important to a business set up and review the many tasks they can perform. We also examined the many benefits they can provide your business.

 

If you are looking for the best accountants for small businesses in the Cape Town area, then look no further than SureBooks. Our team of highly trained accountants will help you and your small business with all your financial needs. Contact us today either by phone or by visiting our website and let us see how we can help you today.

 

Latest From Your Small Business Learning Centre

Contact us to schedule your complimentary consultation.