Almost always business owners, particularly those who are managing small businesses and those under SME category, disregards to see the importance of having accountants. Oftentimes, they look for an Accountant when it’s already too late or worst the BIR had issued a letter of notice (LN) or letter of authority (LOA) for their business.
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.
The following will explain the importance of accountant in your business, no matter how big or 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 exactly what is happening in terms of financial standing. First, accountants 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 your business is on the profit side or losing end. 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. Yep, as a general rule, everything is taxable. As such, not having an accountant means you have to understand Taxation law of the Philippines in order to be tax compliant. Thus, this is another importance why you need an accountant. Seemingly, an accountant can compute and prepare BIR Tax Returns for you. It will save you time in studying tax law and computing your own tax return. Further, 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.