Most startups start by working with an external accountant who helps or even manages the bookkeeping business. The reasons are obvious: Extensive know-how, a full scope of services and last but not least flexible contract terms.
In the long term, however, it is worthwhile to refrain from external service providers and to build up an own, powerful finance department. An external accountant will never have a 360-degree overview. Even if he correctly accounts for expenses and revenues, it will always be difficult for an outside service provider to present them in the accounting system so that the management can get a clear picture of the company’s economic situation.
In the case of theft, loss, damage to the goods or property of the company, management will always know about it. The inventory, together with the financial statements, allows you to keep the business of the entire enterprise in order.
Not only inventory but also an elementary distribution of salaries among employees of enterprises is another function of accounting. Only qualified specialists will be able to calculate and accurately determine the salary of an employee.
Regulators are especially interested in the company’s financial audit. Today, in accordance with the laws of the country, its enterprises are simply obliged to provide their clients with the most complete financial statements. This procedure had to be introduced when some representatives of the manuals of the largest enterprises in America falsified their reports. All submitted reports are checked by independent specialists of regulatory authorities. If the report coincides with the assessment of the enterprise by specialists, then they give a positive verdict. In this case, investors can safely invest in the company.
Tax authorities also monitor the activities of the enterprise. Everyone knows that small and large businesses should transfer part of their annual profits as taxes. Since the tax authorities are provided with a lot of fabricated and incorrect reports, the tax authorities are forced to check each one manually. In the event that the report is fabricated and is actually unreliable, then the management of the enterprise will have serious problems.
What is the best way to organize the accounting department of the company?
First of all, you need to recruit qualified staff. These should be accountants with appropriate certificates of their ability to carry out accounting and auditing. The more prestigious the institution, the higher the value of the certificate obtained. Accordingly, the qualifications of graduates of the most prestigious educational institutions are always high.
Next, an experienced manager will bring together an independent accountant department that will take over the entire financial accounting of the company. Recruit only accountants from accounting agencies. It is necessary to form the top of the department, that is, the chief accountant and the lower top of the department, that is, the assistants to the chief accountant.
In the event that a company has several subsidiaries, then it is necessary to maintain separate financial records for each one. In the aggregate, they should not be considered in any case – so the entrepreneur will be deluded in the results of his own activities. A separate audit allows you to study in detail the strengths and weaknesses of any business.