The common perception of accountants is that they merely “keep accounts”. They work retrospectively, analysing and reporting on that which has already happened. Few people are aware just how important the accountant’s role is for the health and development of a company. The sort-sighted see the expense of employing accountant as unnecessary or as something that can bypassed. Those with their eye on the future and the well-being of their company turn to the expertise of a finance professional. For the benefit of the short-sighted, Holden Jones presents the top five reasons you are losing money by not employing an accountant:
- Business Planning
The end of the recession and the gradual recovery has seen companies enter new periods of expansion. To grow, an organisation must know its financial constraints. Does the reality of the present financial situation match with the goals of the directors? Where would be best to invest precious capital to maximise the gains of development? The best person to answer these questions is an accountant. Any form of business planning requires budgeting, analysing and monitoring and it is the company accountant or finance department that will undertake these functions.
It is in the nature of accountants to know what is and isn’t a good investment (not every accountant is a sage, but they have a keen eye). Guiding an organisation through the varied and numerous minefields of investing (tax, regulations etc), an accountant will use their skill and expertise to ensure your investments provide a sound, secure, and reasonable return.
3. Maximise Sales Revenue
Getting the price of what you sell correct is vital to the survival of your business. By constantly analysing internal and external factors, accountants provide a pricing structure for whatever goods or services are being sold. Working in conjunction with a sales team, an accountant (or department) is able to maximise sales revenue at any given time.
Tax law is incredibly confusing and constantly changing. To be able to navigate through the quagmire of rules and regulations for your company to may remain compliant, requires expertise that, unless, you are an accountant, is outside of your remit. A trained finance professional will ensure you operate within the boundaries of the law regarding your tax, investments, future planning, and a great deal more.
Whether you have an outsourced accountant, employ one in-house, or have an entire finance department, at the heart of each is an experienced, seasoned accountant that will have developed a substantial, mature and, most likely, very relevant professional network that you can access for business development, seeking fresh talent, or promoting your brand. No matter what size and organisation is, networking is a critical at every level of seniority.
Accountants are an important central pillar to every organisation. They generate indirect revenue for their employer, keep companies compliant, help to develop professional networks, advice on investments – the list goes on. If what we’ve said so far has not convinced you, we will leave you with one statistic: over 25% of FTSE 100 companies have a CEO who is also a chartered accountant, and if you include Chairmen, the number rises to 40%. The biggest companies on the London Stock Market already understand the important role finance professionals play at the heart of a company.