An entrepreneur's accountant ought to be accomplishing more than simply keeping the books.
The entrepreneur's accountant ought to be increasing the value of the business by taking care of the following business matters, asking the following questions or giving the following services:
Reporting and Keeping the Books & Reporting
Information entered, accommodated, and "closing the books" on a month to month basis is an outright necessity. At the very least, the monthly reports ought to incorporate cash flows, monthly profit and loss and balance sheet reports.
Management of Cash Flows
An accountant can help an entrepreneur by keeping a consistent management of a weekly as well as monthly cash flow. The repetition period can be decided on the basis of how tight the budget can be.
Management of Payroll
An accountant knows who in the organization is obliged to take a Payroll and when, and can incorporate the entrepreneurs in certain corporate matters. Similarly he knows the IRS related guidelines, the workers’ compensation related guidelines and payroll. A CPA can augment expense reserve funds techniques to analyze various assessments.
Knowledge of Tax Reporting Rules and Deadlines
An accountant is well aware of tax reporting rules and deadlines regarding income taxes, property taxes, payroll taxes as well as sales taxes. Even if he does not file tax returns, he will push all the related information to the tax preparer way before the deadlines.
Obtaining Estimates for Tax Liabilities
An accountant can also help provide the tax preparers with the monthly or quarterly financial reports in order to obtain estimates for tax liabilities. He can then properly accrue for the liabilities as soon as they appear and communicate with the business owner so that the business can flourish.
Knowledge on Basic Legal Structures
A CPA questions and learns the advantages and disadvantages of the taxes and basic legal structures when choosing on entity over the other. They also know the appropriate time when they can incorporate their knowledge financially for profit. Through their knowledge, they can ensure legal protections, save taxes and simplify the structure of the company.
Knowledge of Deadlines for Legal Filing Deadlines
An accountant knows all deadlines for legal filings on all entities, which can include registering entities, foreign registrations as well as doing national businesses. Accountants can pay and file all the related annual filings.
Protection of Company Assets
An accountant can protect the assets of the company by preventing frauds that the assets could be internally or externally be risked at. He makes sure that all the equipment, check, supply and inventory is measured and accounted for to avoid any form of theft.
Updated On Non-Taxable Withdrawals
Many entrepreneurs can get involved in some personal activity and take advantage of their business tax savings. An accountant knows how to properly account all the transactions and keep himself updated on all non-taxable withdrawals.
Timely Financial Information
An accountant can assist the business owner by providing financial information on time and help him understand the rate of profit, design a specific forecast or budget, target profits as well as other financial ratios.
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