From the moment the first sale is completed in any business transaction, an accounting cycle begins. All businesses are required to keep records of revenue, assets, liabilities and payroll.
Accounting for business can vary greatly in the actual performance of accounting duties. Some businesses prefer to maintain their business accounting in house. Others outsource their accounting to licensed CPAs and auditors. The type of business operation usually determines the type of accounting, even with basic accounting principles in place.
In many small businesses, accounting can be done once a week. This assumes the business has a relatively low volume of daily accounting transactions. Other businesses require daily accounting due to high volume transactions.
Determine specific business accounting needs to engage accounting individuals who are licensed, knowledgeable and have a pro-active sense of planning and tracking accounting records. These individuals should be heavily detail-oriented and capable of spotting weaknesses in accounting transactions expediently.
While scientists study details in data, accountants study details in numbers. To hire a successful accountant, it’s important to review their experience and their specialty. Not all accountants perform general accounting duties, although they may be fully trained to do so. Many business accountants specialize in cost accounting, payables, receivables, general ledger or payroll. Most business owners choose a business accounting individual who has general accounting experience to cover a wider range of business accounting.
Why Hire a Licensed CPA or Auditor?
In businesses, accounting tracks daily revenues, profits and losses. At the end of each fiscal quarter, a report is produced on the full record of business quarterly, bi-annually and annually. These reports are required to validate and substantiate the financial state of the business to state and federal agencies. Financial reports must be validated by a licensed CPA or auditor. The job of a professional auditor is to verify all financial records for a designated length of time recorded by a licensed CPA, as required to comply with state or federal laws.
Other Duties of Business Accountants
Today’s business accountants take on the responsibility of creating projected reports based on prior fiscal quarter records. Basically, business accountants formulate reports based on actual, cumulative and projected financial records. This allows for a complete cycle of accounting that helps business owners accurately assess the state of growth of their revenue, profits and losses. Using financial and accounting tracking helps businesses plan for the future.…