What Does an Accountant Do on a Daily Basis (And Why Businesses Need One)

what does an accountant do on a daily basis

Are you struggling with your business finances? Perhaps you need to stay organized. 

If so, an accountant can help you. What does an accountant do on a daily basis? The basics of accounting include filing taxes, organizing financial records, honoring payroll, providing financial advice, creating budgets, among other duties. 

You can do accounting on your own, but a trained professional can be an objective voice. They will also spare you the hassle of financial management, giving you more time to devote energies elsewhere. 

Accountants work for individuals and businesses. For companies, accountants preserve the financial health of the entity. 

This article will explain why a business can benefit from the services of an accountant. Let's explore a day in the life of an accountant. 

What Does an Account Manager Do on a Daily Basis for Startups? 

Accountants can help start-ups and new businesses build solid foundations. For one, they can help you determine the right business structure

Business entities (i.e. corporations, LLCs, or sole proprietorships) have various pros and cons. Accountants can highlight the benefits and drawbacks, allowing you to choose the correct entity. 

Moreover, account managers can help you craft a viable financial plan that coincides with your business plan. A financial plan is a blueprint of your current finances and financial projections. 

They can also help you find a business bank account. Business accounts separate your business assets and personal assets. 

Accountants will stress the importance of asset divisions. 

Note: Accountants can show you how to divide your personal and business assets. Mixing the two can muddy the waters legally. If you mix personal and business assets, you may become personally liable for activities done in the company's name. 

Moreover, financial advisors can help you navigate business regulations and protect your business from litigation. In addition to legal advice, an accountant lend advice to startups obtaining business funding. Accounting professionals will determine if a loan is a right fit for your business. 

If you obtain funding, they can help you establish a payment plan to avoid default. Above all, they'll help you maximize the funds given to you. 

Software Management 

Overall, they will track the everyday expenses of your new operation using the latest technologies. Account professionals will also recommend the best tax software that will automate your company's operations. Plus, they will use the software on your behalf, sparing you the drudgery of software training. 

Business Expansion 

Accountants can help you foster long-term growth. They will analyze your cash flow and provide insight into future revenue growth. 

Finance managers are also integral in the realm of inventory management, conveying how to price your products and services properly. If you receive business loans, they can channel the funds to crucial areas that will grow your operations. 

Example: To grow your business further, you may need to invest in new equipment or upgrades. 

Account professionals provide guidance during real estate transactions, especially if you intend to purchase additional store locations. 

Budget Advice 

Even though accountants can take your business to new heights, they will do so from a realistic perspective. They will tell you what you can accomplish based on the current state of your finances. 

Accountants also draft business budgets for your company to follow. A sound business budget from an accountant will help you accomplish the following: 

• Plan for unexpected expenses 
• Analyze the financial profile of your company 
• Highlight areas where you need to improve 

Within the budget, you can plan for expansion, repairs, and upgrades. Expanding from your budget prevents overspending and premature investments. 

Tax Advice 

Accountants can file taxes for your company. They also handle a bulk of the tax paperwork. Additionally, account managers are useful allies in case your business faces an audit. 

On average, one percent of individual taxpayers receive an audit. For businesses, the number is 2.5%. 

Therefore, hire an accountant who can prepare you for a potential audit. They will help you gather the necessary paperwork and help you weather the storm. 

More importantly, they can prevent audits by organizing and preparing tax returns accurately. Account managers will also invoke the correct tax deductions, reducing your tax balance. 

Staff Classification 

Whether you own a young or old business, you must classify your workers accordingly. Accounting advisors can determine if you should classify your workers as employees or contractors. 

Depending on the nature of your business, an accountant can determine if you should hire contractors instead of employees. When it comes to contractors, they can enlighten you in the following areas: 

Taxation: You don't have to withhold taxes from contractors. 

Labor Laws: You don't have to abide by labor laws when hiring contractors. 

If you choose to hire employees, accountants can help you draft a pension plan and a benefits plan. In addition, they'll provide advice on vacation times, employee bonuses, employee stocks, among other benefits. 

Financial managers can also assess the best wages or fees for your workers. Further, they can ensure all workers receive payment on time. If you need an accountant for your business, check out Finvisor for more information. 

What Does an Accountant Do on a Daily Basis for Small and Large Businesses? 

If you want to know, "What does an accountant do on a daily basis for companies of all sizes?", the quick answer is that accountants manage company finances. They're useful in such areas as taxes, staffing, funding, etc. 

Accountants can help owners choose the right business structure. Further, they can help prominent businesses through tough times, especially if the business faces an audit. 

Account managers can also nurture long-term growth within start-ups and established businesses. At the same time, they're realistic about your business aspirations, providing realistic scenarios for your business. 

Interested in reading more about accounting? Read more on our blog to gain insight into other financial topics. Visit the Finance section of the Bootstrap Business Blog right now.

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