Guess What!? The day has come yet again.
On this same day, in 1494, the Father of Accounting (Luca Pacioli) published the first-ever double-entry bookkeeping system and several years later, it was celebrated as International Accounting Day. So, turn around with a smile and tell the accountant you know “Happy International Accounting Day”. As many non-accountants wonder why this day exists, Jali Partners takes this opportunity to highlight to you the importance of accountants and why you need them as an individual and in your business.
In only one minute, you can read the points below and know the importance of accountants and why you need one for yourself or your business.
How much money did you earn yesterday, last week, or last month? I am sure you should be knowing this. But how much money did you spend is a question that many fail to answer because they never take the time to note this. But after all, they are not bookkeepers.
If you are reading this page, you must agree with me that money is one of the biggest factors of success. To those who have managed their money well, life has been amazing. To those who have not managed their money well, life has been somehow stubborn. In a long run, they are left bankrupt without any savings. A few who have means tend to hire financial advisors who in most cases are accountants, yet some do not find the reason for having financial advisors. For businesses, you either have an accountant or you close doors shortly after the start. It is amazing how accountants are hyped, but why do they really matter?
Accounting helps you evaluate your business’s financial health. A good accounting team/system makes it easier for business owners to look back in the past and make comparisons of what took place in the past and what is taking place in the present. As a business owner, you need to know whether your firm is progressing or declining. This is done by evaluating the transactions that have taken place in your firm in terms of how much money you have generated or used. This then helps you to think about the possibilities of diversifying your business. Many business owners tend to track all these transactions by themselves, but this has not always been fruitful because they end up making poor financial projections that could have been solved by an accountant if they had one.
Working within the law. Having a skilled accounting team/system helps your firm to keep operating within the standards of the law. To make a small reflection on this, just imagine how many tax regulations you know. Do you know the consequences of violating them? These and other finance-related guidelines are all mastered by accountants. That is why you need to have at least one in your business and avoid sweating in front of law enforcers when you unknowingly violate tax regulatory guidelines.
Managing budgets and business loans. At a certain point in business life, you will need to get a certain amount of money to upgrade your business, and this is amazing. However, the issue comes in when you fail to manage the money and end up using it on projects that were not planned. An accountant in this place will help you plan and execute the money accordingly. If the money was got from a loan, then the accountant will make wonders for your business. This is the time you will forget about what many call loans stress. It is all for the accountants.
“Accountants are the silent architects of financial order, meticulously translating complex numbers into the elegant language of balance. Their precision, dedication, and unwavering commitment keep the heartbeat of commerce steady and strong.”
Jali Partners Ltd.
Several more issues are handled by accountants and these exclusively include helping you to get more tax deductions, saving time, improving decision-making, auditing, and placing your business in the best view of financial investors.