What Do Accountants Do?
There is a revenue breakthrough which if a business achieves financial assistance is vital. 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.
Assistance on Cost Reduction
The efficiency of a business is guaranteed if a business follows the strategies to reduce costs introduced by the accountant. The ability to analyze income and expenditure records the same way a financial advisors can. After studying these records, they can suggest reduction or elimination of certain expenditure.
By example, an accountant attached to a Judge may find that large amounts of money are being spent in charitable expenses. It is the role of the judge’s accountant to compare the income being received versus the expenses. By so doing a judge is advised accordingly on the expenditure which he has to eliminate or reduce. In such a scenario, the judge can be advised to channel the monies to other plans and completely adjust the expenditure.
Honoring Tax Remittances
Judges pay taxes too and the role of their accountant is to ensure they honor their obligations.
A judges reputation greatly benefits if they honor their tax obligations because if this is not done then the credibility of the judge can easily be damaged. The accountant once again has the role of properly calculating and disbursing these taxes.
Statements that are accurate are emphasized. Accountants offer professional assistance if they are contracted. Arresting any activities that are being carried out in a company can easily be detected from the accurate records.
If finances are abused the judge can be left in jeopardy and in a financial mess. There is the Enron scandal that was reported in CNN.com back in 2001. This business was before the scandal ranking very high in profits.
Many officials were involved in the embezzlement. The reputation of Enron was badly damaged and till now the company is struggling and still said to be defunct.
Minimizing Financial Errors
Businesses can be jeopardized by financial errors. In the case of a new company that acquires a property due to the income that they are receiving. But it soon realizes after the purchase that they miscalculated the value of the assets. This is a situation which such a company finds itself in.
An accountants role is important.Financial statements and bookkeeping is responsible for the break or make of any business.