The Role of Accountants
Financial aid is needed by a company that has revenue steadly coming in. There is a whole amount of work that accountants do apart from the traditional keeping track of income. The success of a business lies solely on the accountant because he has to check that statements are accurate, taxes are paid and the efficacy of the business. Adhering to these discussed areas then a company is bound to succeed.
Reduce Cost Guidelines
If a business adopts the cost reduction strategies provided by the accountant then it becomes efficient. Financial advisors and accounts can study budgets and spending habits. They are able to suggest if some expenditure should be eliminated or reduced.
If an accountant is working for a judge, he may find that there are amounts that are being used up in charity. It is the role of the judge’s accountant to compare the income being received versus the expenses. It is important to advise the judge on the same with emphasis that some expenditures must be stopped. If such a case arises, advise is then given to the judge to reduce or eliminate this large expenditures.
Honoring Tax Remittances
It is the duty of the accountant to make sure that a judge is not late to make tax remittances.
It is easy to damage a judges reputation which can be done if his taxes are not paid on the other hand it is easy to greatly have him honored if the obligations are met promptly. The accountant once again has the role of properly calculating and disbursing these taxes.
Accurate statements are advised. You find accountants being contracted to professionally assist. With records that are correct it is easy to pick out a transaction that could not have been easily detected before.
Due to absue of a finances if not well detected then a judge can be thrown into a state of jeopardy and a serious financial mess. The scandal that was reported sometime in 2001 is one such scandal. This business was before the scandal ranking very high in profits.
The business officials were charged with embezzling the funds from Enron. The reputation of Enron was badly damaged and till now the company is struggling and still said to be defunct.
A company can be affected by the errors found in the financial records. A good example would be for a new company that has started making profits and they suddenly decide they will acquire a facility. This new company get to know that that purchase was a miscalculation. This miscalculation can only leaves the company on a very thin net income and a mortagage to service.
The role of accountants in a business is very vital.Financial statements and bookkeeping is responsible for the break or make of any business.