An accountant plays one of the most vital roles in a company. Without them, your company’s financial information will not be compiled, translated, and recorded to sustain your good business standing and financial health.
As a small business owner, you’re still probably learning about your accountant’s primary responsibilities. Perhaps you fulfill the role yourself since you’re still starting out, and you want to ensure that all duties are accomplished.
If you want to become proficient in your accounting duties, here’s a guide on knowing the essential accountant responsibilities year-round.
1. Checking Bank Positions – Accountants must stay updated with the company’s financial standing, so it’s essential to check it every day to ensure no fraudulent transactions are happening.
2. Recording Incoming and Outgoing Payments – It’s a basic rule for an accountant to record any payment transactions to keep track of how much money goes in and out.
1. Double-Checking Payroll – Sometimes, accountants become complacent with the payroll system that they fail to notice wrong input of information. Ensure you do this weekly to keep it up-to-date. While accounting software can make the process easier, there’s no harm in double-checking payroll so you can pay your employees on time.
2. Sending Out Invoices – Doing this weekly can help your company settle payments to maintain good cash flow in the company. Send out invoices all at once so you can track each status easily.
3. Monitoring Cash Flow – Monitoring cash flow is like budgeting your income. You need to ensure that you have prepared your payment requirements for next week and review unpaid bills from last week. Doing this weekly can avoid missing payments, making cash flow as smooth and timely as possible.
1. Balancing Books – Balancing books at the end of the month will help you track your growth from the previous month. You must also ensure that your bank balance matches your accounting package to avoid complications in your record.
2. Reminding Debtors – Payment reminders for debtors are also good to do every month, especially for the late payers, since this can also improve and sustain your company’s smooth cash flow.
3. Paying Bills – Make time to check if you have settled all outstanding balances of your company and make sure that you pay your suppliers immediately. In this way, you can maintain a good relationship for a smooth transaction in the future.
4. Inventory Tracking – Inventory tracking will help you avoid falling short on supplies since your window time for restocking is systematic. Ensure that your inventory is updated every month so you won’t have a hard time fulfilling the stock loss, especially if you are a retail or manufacturing business.
1. Settling Quarterly Tax and BAS – This responsibility is one of the most critical tasks that should be done quarterly to maintain a good record and reputation. Failure to do so may result in incurring fines and bad records.
2. Analyzing Profit and Loss – As an accountant, you must know the status of the company’s profit-versus-loss. This is so you can take the proper course of action to make up if the loss is greater than profit. Do this every three months to garner quality results.
1. Updating Accounting Software – There’s a chance that your last year’s accounting software is already outdated and can’t meet the demands of the current year. Review if it needs updating and upgrades, so it will be suitable for the current year’s business accounting demand.
2. Preparing Year-End Financial Statements – Having systematic calendar plans of your tasks will make your year-end preparation easier because you have compiled and organized reports during the year. All you have to do is double-check all the records, and everything is ready for filing.
After knowing all the complicated responsibilities of an accountant, it’s time to give them importance and value since they are the ones keeping your company in place and legally compliant. If you manage the accounting aspect yourself, consider hiring a professional accounting company to provide efficient accounting services. When you let the experts handle your accounting, you can focus on the core of your business.
Bianchi & Associates, LLC can help you handle all your accounting responsibilities and perform your business’s financial functions. You don’t have to do it yourself; we are experts in handling bookkeeping, tax services, and accounting services for various companies. Get in touch with us to know how we can help you! We serve clients in Rochester, NY and beyond.