Importance of Accountants: Why You Should Hire One for Your Business?

Many business owners, especially those who manage small businesses, neglects to see the importance of accountants in their business. They only realize the importance of accountants in the following circumstances:

• Filing of Income Tax Returns and Audited Financial Statements;
• Renewal of business permits and licenses; and
• BIR or Other Government Agencies Audit

Oftentimes, they look for an Accountant when it’s already too late; they cram to find whoever will help them quickly.

As an Accountant, we understand that small business owners find it costly to maintain a retainer to do the monthly bookkeeping and tax preparation for their business. But what they don’t realize is the monetary and non-monetary benefits of maintaining one. In this article, we’ll try to explain the importance of accountant in business, no matter how small it is.

1. Organized Record of Financial Data

Most business owners want to focus their time and energy operating and growing their business. As such, their financial documents for personal and business often mixed up. Having an unorganized financial documents create stress and headaches to business owners because they don’t know if their profiting or losing.

First importance of accountants is that they maintain an organized record and filing of business day to day financial records. This is often referred to as Bookkeeping. When the business has a systematized and organized record keeping of business transactions, it will save you time worrying about whether you are profiting or losing. Also, you don’t need to worry on how to organize all the receipts you need to file and record.

2. BIR Tax Compliance and Other Reportorial Requirements

All income earners are required to pay monthly taxes, even small business owners. As such, not having an accountant means you have to understand Taxation law of the Philippines in order to be tax compliant.

This is another importance of accountant; they can compute and prepare BIR Tax Returns for you. It will save you time in studying tax law and computing your own tax return.  Also, Accountants can also give advice on effective tax management.

3. Save Time to Focus on Growth of Business

Keeping track of your financial data, recording and filing it can be time consuming, especially if you are not used to it.

If you have an accountant, you can save a lot of time to focus on growing your business instead of worrying about tax deadlines and keeping an organized accounting records.

4. Save Money

When you don’t have an Accountant, there will be high possibility of future penalties, plus interest, on government reports you missed filing or incorrectly filed. Having an accountant can save you cost on these future penalties and charges of correcting your accounting books and tax returns on time.

5. Peace of Mind

The last but not least importance of an accountant in business is for owners to have peace of mind. When you have an accountant who does the record keeping and tax compliance, you don’t need to worry that if somebody comes to your business to do Audit. You are somehow confident that you have records to show you are complying with accounting and government reportorial requirements.