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Successful business entrepreneurs almost always start out with an idea for a product or service that they believe will fill a gap in the market that the public will want to purchase. They build the business from the ground up through hard work, taking risks, knowing their market and being excited about what they are achieving. Nowhere in this heady mix have they ever seen the daily grind of keeping track of the finances as exciting. They do understand how vital this is to their success, but they prefer to hand the function over to someone who actually likes doing it, so they can get back to what they enjoy. Depending on how far along these entrepreneurs are in their business building cycle, they may initially employ a competent bookkeeper to record all the transactions, pay the bills and reconcile the accounts. As the business grows, however, they find they need more professional help and at this point, they may employ a corporate accountant. With this accounting professional on board, the business is now able to move up to the next level. A corporate accountant will establish systems to control cash flow and monitor the movement of cash through the business. These systems should include sound debtor management to ensure that customers pay their accounts within the agreed trading terms, and develop strategies to recover outstanding debts. A key part of this role is to ensure that all financial transactions are being recorded accurately and within the right time frame. Having checks and balances in place to verify accuracy of the data will allow management to make important decisions based on the financial reports they are being presented. It also enables accurate reporting of ROI (return on investment) and other key business indicators. Establishing budgets is another cost control measure that an accountant will introduce. By identifying and estimating every possible expense likely to be incurred over a financial year, and comparing these budget figures against actual expenses, management can quickly identify any areas that are underperforming, and take corrective action immediately. With the accounting software available today, it is possible to run these reports on a weekly basis and a corporate accountant would most likely do that to ensure that costs don’t spiral out of control. A successful business builds genuine relationships with suppliers and stakeholders, and ensuring that the business debts are met within trading terms is a key part of those relationships. The corporate accountant Narangba views this as a cost saving measure, since paying on time does not incur late payment penalties or damage to the business reputation. It would be very difficult for the business owner or manager to keep track of the financial detail without the additional skills a corporate accountant brings to the business. At some point, every growing business will need these skills, and they should be regarded as an asset and not a cost. http://www.charterpartners.com.au
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