What Do Accountants Do?
- October 9th, 2014
- Comments Off on What Do Accountants Do?
“What do accountants do?”
It’s a common question for business owners who are trying to decide where they can cut costs. On a very basic level, many people could dismiss the job of an accountant on the assumption that they merely add up numbers on a sheet of paper. “I can do that,” they’ll think to themselves, until tax time arrives and they come to find they’ve completely botched all of their financial records.
Hiring an experienced accountant goes a long way for business owners, because their depth of knowledge is so vast that they’re ready for any and all financial situations you may encounter. An event that affects your business that may seem catastrophic to you won’t rattle an experienced accountant, because chances are he’s seen it before, and knows just how to handle it.
But how exactly can an accountant help you?
What Do Accountants Do?
- Help you decide the type of entity and ownership structure you should establish when you first start your business.
- Design an accounting system that fits your needs so that your financial reporting at the end of the year will go smoothly.
- Ensure that you don’t over or under pay your taxes.
- Make sure that you correctly classify your employees and independent contractors, and distribute the necessary W2 and 1099 forms to the right people at the right time, so that there won’t be any issues with the IRS.
- Advise you on how to separate your business and personal expenses, and deductions to which you’re eligible.
- Provide guidance and advisement if you’re ever audited.
- Give advice as to whether it’s better to lease or buy, or other specific transactions in which you may partake.
- Compile your financial records during particular time periods, especially the period that’s passed most recently (and will be required when you file your taxes).
- Help you understand what your financial statements are showing you. This may be the most important job of all the tasks for which accountants are responsible. An experienced accountant is going to give you thorough, detailed explanations of every aspect of your financial statements so that you understand each and every part of them. You shouldn’t ever be confused about the documents that pertain to your business expenses, and a good accountant—such as one of the tax professionals at JRH & Associates—will never leave you in the dark about the important details related to your business.
- Answer any questions you have about which of your business expenses are deductible and which aren’t. You don’t get paid to know the intricacies of tax laws and staying current on their ever-changing rules and regulations—your accountant does. You need a reliable accountant who’s up-to-date on his tax knowledge so he can give you the most accurate information to help you save the most on your taxes.
Having an experienced accountant at your service is one of the most valuable tools in which any business owner can invest. Everyone knows that time is money, and the return on any investment needs to be a good one, and with both of those things in mind, hiring an experienced accountant is one of the smartest choices a business owner can make.
Call the tax professionals at JRH & Associates at (516) 794-5752 today to learn more about what accountants do and how we can help you!