How do you view accountants? Some business owners view accountants as the tax collector and others believe they did not have taxes until they hired an accountant. Many business owners have no idea what an accountant does. Do you often wonder the purpose of an accountant or if you really need one?An Accountant is a partner in business. Not a business partner but walks alongside you to help you financially grow and manage your business. We help to reduce your tax bills, organize your finances, introduce you to accounting technology and digital tools. Accountants began as bean counters and tracked business activities in the bible. Tracking and documenting of transactions is the assignment of bookkeepers but evolved into more than just bookkeeping over the years.
The right fit with an accountant can be very helpful. I have created a list of services accountants provide to help you manage finances and increase profits.
Accountants Help Businesses with Profit Strategies to Increase Income
Profit strategies help the business control the feelings of endlessly trying to turn a nonprofitable service or product into profit. Profit strategies help to analyze the services and products that do not bring in enough income to cover the cost. Basically, this means you are paying clients and customers for your service when you do not charge enough to cover cost and labor. Accountants help to calculate cost, taxes, labor and encourage the business owner to ask for the actual price. This helps to reduce emotional pricing. Proverbs 12:11 - "He who tills his land will have plenty of bread, But he who pursues worthless things lacks sense."
Accountants Reveal Dishonesty and Keep the Faithful Accountable
Unfortunately, there are some individuals who are very dishonest when it comes to business dealings. We often find ourselves in a very costly situation when we do not document the business relationship and specifics. If you are considering a business deal with another person or persons, Accountants serve as a third party to review the financials for both parties. Each owners accountant would review the information and discuss the findings with each respective owner. The review can reveal inconsistencies and items that may need to be discussed prior to making the agreement. Proverbs 16:8 "Better is a little with righteousness Than great income with injustice."
Accountants Help to Build Future Budgets and Money Plans
Excitement over a dream or idea can create a financial disaster in the end when we venture out and call it faith without stopping to develop a plan for our money. I have often heard many believers say, "Oh don't worry about the money, God will take care of that cost." There are mixed feelings regarding this theory. Often, this same thinking believes the accountant holds them back. The adventurer usually will not share the idea until a tax bill comes or the business falls into the red. I agree that God will take care of the cost if it is something God has call you to do. However, God also said to count the cost. Luke 14:28 NIV"Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it?"Your accountant will help you to build out a schedule of the cost needed to support the venture, the accountant will help you create an effective spending plan, and help you to determine taxable income if the venture brings in revenue. No worry needed because a prayerful plan is a good money plan that will be multiplied.
Accountants Help Increase Investments, Savings, and Growth
Living life creates ups and downs in our money. On Payday we feel on top of the world and deeply sad and worried 2 days later when it is all gone. What happen? No savings? I have often heard many say I don't believe in savings because I can't take it with me. I agree but that money is supposed to stay and help others. You are also a conduit for money and money flows through you to support you and your family during the slow down seasons and for giving to help others. Constantly, living "high on the hog" as my grandmother use to say, will leave you ineffective, broke, busted, and disgusted. Accountants help you create and manage savings and reinvestment plans. Financial Planners will assist you with investments. Proverbs 6:6-8 "Go to the ant, O sluggard, Observe her ways and be wise, Which, having no chief, Officer or ruler, Prepares her food in the summer And gathers her provision in the harvest."
To Whom Much is Given much is expected
We also have to monitor our money. We have to determine a budget to develop a plan of spending. Developing a guide to savings and having an effective spending plan will help to save on taxes.We must remember that delegating all financial responsibility over to just one person is opening the doors to fraud. Some people do not live by ethical standards for various reasons. When one person is left with too much authority it can lead to a tempting situation. However, do not classify the actions of the few with the many honest individuals, just take action and pay attention when your accountant wants to share what's going on with your money.You may not have to complete the bookkeeping but you should be a part of reviewing your bank accounts, taxes, and the financial statements. You will keep more money in your personal and business life for more effective giving and spending.Managing money, bookkeeping, taxes, and accounting are not a set it and forget it or assign it and forget it situation...get active! You have been given the gift of money to manage and an Accountant is there to help.