When you work in accounting and finance, there are many tools and resources that can make your job more efficient. Without good systems and reporting procedures in place, it's difficult for a business to be truly successful.
Accounting and Finance Resources
An accountant's role covers all aspects of a company's finances, including payroll, accounts payable and receivable, handling bookkeeping processes, overseeing budgetary tracking and reporting, and assisting your company's management with securing funding for the business.
Managing a Company's Finances
When an accountant manages a company finances, there are many "hats" they wear to accomplish this critical role. Especially with a small business, it's vital to monitor a company's bottom line to make sure the company can meet payroll, cover the cost of goods and services, and become profitable. An important aspect of this role is following GAAP which stands for Generally Accepted Accounting Principles. Another aspect is creating policies and procedures for a company such as a credit card use policy and handling cash deposits.
Finding Funding for a Business
Particularly for new businesses, securing funding may be necessary for continued growth. An accountant can help with creative financing ideas if traditional loans are not an option. Business loans from a bank or venture capital firm are also possibilities. Some businesses may be eligible for government loans from the Small Business Administration and some are even geared toward promoting women-owned businesses.
If you have one or more employees, it will be necessary to set payroll system. This includes getting your tax ID number, having employees fill out a W9, and setting up clear procedures for your payroll system. The better your process is, the easier it will be to do required tax forms.
It used to be that accountants had to prepare all of their reports by hand in an accounting ledger. Times have changed and now there is complex accounting software that can handle everything from payroll processing, tracking accounts payable and receivable and preparing financial statements. A good accounting software package can make reporting for management a breeze, easily creating in second common reports like income statements, balance sheets and cash-flow statements.
Become an Effective Accountant
Managing your role as an accountant entails using the latest software to improve efficiency, learning and following GAAP, and making use of the many resources available for small to large businesses. A good accountant can develop processes that ensure a company can turn a profit and know their financial position at any time.