A business accountant can help you understand your company’s finances. This will enable you to budget, forecast and make financial decisions. They will also ensure that your company stays in compliance with state and federal regulations. They will use double-entry bookkeeping and accounting methods to track your assets and liabilities, such as accounts payable and accounts receivable. They will also help you with costing and inventory management.

Tax Preparation

A business accountant can help you file your company’s taxes. They can also assist with tax planning and structuring investments to reduce your tax liability. They should have a strong understanding of accounting standards and regulations, including Generally Accepted Accounting Principles and International Financial Reporting Standards. They should also have experience handling complex tax issues. If you’re unsure who to hire, ask for recommendations from colleagues. You may also want to check the IRS’ directory of preparers who have PTINs and other credentials.

A business accountant will help you prepare an income statement, which gives a more detailed look at your expenses and incoming revenue. They can also provide you with information on eligible deductions, like health insurance, IRA contributions, home office, travel and charitable giving. They will also help you calculate your estimated tax payments throughout the year. They can file your taxes online or manually, depending on your preference. This is a crucial service, as incorrectly filed taxes can lead to penalties from the IRS.

Financial Statement Preparation

Financial statement preparation involves collecting all the relevant financial details and converting them into official documents that showcase your company's performance and financial health. These statements are crucial for stakeholders like investors and creditors, allowing them to make informed decisions about whether or not they should invest in your business. It also ensures compliance with accounting standards and regulations. An income statement, often referred to as a P&L, lists your company's total revenue and expenses over an accounting period, giving you a glimpse into the net income that was earned. This statement is important for tax purposes because it helps you determine your potentially taxable earnings.

A balance sheet is another financial document that shows the amount of assets, liabilities and equity you have over a specified time period. It also highlights your incoming cash and outgoing cash equivalents. The statement of cash flows is an additional document that includes the inflows and outflows of operating capital.

Budgeting

Preparing budgets is an important service offered by business accountants. These documents detail estimated income (money coming in) and expenditures for future periods. They also include estimates of financing needs such as predictions of loans. These reports help management determine if the company is meeting financial expectations, if it has the resources to carry out its plans and how the budget compares with actual performance. This information also helps management identify problems such as declining revenue, insufficient cash reserves or customers who fail to pay their invoices on time.

In addition to preparing budgets, financial accountants may perform other accounting tasks such as sales and expense reports, tracking customer payments, analyzing input-cost trends or auditing expense reports. As a result, they can offer more holistic accounting services to their clients. They can help companies reduce costs, improve productivity and grow profitably over the long term. Moreover, they can assist businesses with developing effective strategies for managing change and staying competitive in turbulent economic times.

Payroll

A business accountant helps you manage payroll and taxes, which includes calculating gross pay (total earnings before deductions) and net pay (take-home after deductions), deciding pay periods, determining the best tax deductions for health insurance and retirement contributions, recording employee time records and generating pay stubs. Keeping accurate payroll records helps you avoid costly fines and penalties from the federal, state and local governments. A comprehensive payroll service provider may also provide year-end tasks like providing W-2 and 1099-NEC forms to employees and contractors, as well as filing required tax reports with the IRS and state. This can save you a lot of time and effort.

Many providers of comprehensive payroll services have 24/7 customer support. This can be beneficial for small businesses that need access to customer service after traditional business hours. They may also offer integrated software that accelerates data entry. They are also often able to help with other aspects of financial management, such as accounts payable, receivable and inventory.

Conclusion

A business accountant oversees a company’s financial data and implements accounting systems. They also glean insights from bookkeeping data and assist with tax preparation. A great accountant can help businesses avoid paying more than they’re owed in taxes by analyzing entities and implementing strategies to maximize deductions. They can also handle payroll and manage cash flow.