How an Accounting Specialist Will Improve Your Business
As a business grows, managing the various financial aspects of doing business can become very difficult for management and staff to handle. Accounting specialists can quickly and easily take control of the tedious record keeping that keeps a business organized. By adding an accounting specialist to the team, business owners can be sure their finances are always on track. It may be tempting, and it may even seem like a cost-effective idea for the business owner to handle the books on their own, but it is often financially worth the investment to hire a trained professional to perform accounting responsibilities.
Some aspects of business are simply done better by the trained accounting professional. Just as chefs know their way around the most complicated delicacies, accounting specialists know their way around the bookkeeping aspect of business better than any other member of a team. Though they have many skills, there are several skilled areas accounting specialists can overhaul to improve the way a business functions.
1. Processing Accounts Payable and Accounts Receivable
Accounts payable is money owed by the company, while accounts receivable is money owed to the company. An accounting specialist will sort invoices to determine what must be paid to and by the company, calculate costs vs. cash flow, verify the status of all accounts, remind delinquent account holders of their debts, and ensure all debts owed by the business are in good standing.
Even though the business health is closely tied to the cash flow of the business, business owners often find themselves forgetting to mind their accounts receivable when they get busy.
Sending invoices is only one piece of ensuring cash flow stays healthy but following up on them is an equally important part of the process. When businesses are too busy to stay on top of their accounts receivable, it likely signifies that it is time to hire a dedicated accounting specialist.
2. Handling Payroll
Many accounting specialists are also trained to do the duties of a payroll clerk.
These responsibilities include:
- Calculating the time worked by employees
- Computing each employee's wages and tax deductions
- Preparing payroll checks for disbursement
- Keeping track of production and commission where applicable
- Preparing employee income tax documents for the end of the fiscal year
An accounting specialist will also be able to navigate the very complex and complicated waters of payroll taxes and reporting requirements. They can work with a payroll processing company to make sure the company payroll is on the right side of the law.
3. General Ledger Bookkeeping
The general ledger is the main form of the accounting department's record keeping. A company's general ledger will keep track of assets, liabilities, revenue, expenses, and equity.
This part of the job requires the accounting specialist to create journal entries and compile financial documentation, as well as write related disclosures, ensuring management can quickly and easily find the financial information they need regarding any aspect of the business. In the case of an audit, the accounting specialist will help the auditor examine the information in the journal entries, disclosures, and other financial documentation.
4. Managing Bank Statement Reconciliation
Accounting specialists also commonly take on the arduous task of confirming that the amounts credited and debited on the bank statements match the bookkeeping in the business' general ledger. Depending on the size of the business and the number of different accounts and transactions, this can be one of the accounting specialist's most valuable areas of expertise because the process is time-consuming and requires precision.
Can an Accounting Specialist Help Your Business?
If the financial record keeping of your business is becoming a full-time job on its own, it is most likely time to hire on an accounting specialist. Every successful businesses owner knows their finances need to be 100 percent accurate to ensure their continued success. Giving up control of your bookkeeping may be difficult, but juggling the responsibilities of entrepreneur and accountant of a prosperous business makes the success more burdensome than enjoyable.
Hire someone with the training to help you keep the fruits of your labor thriving. An accounting specialist will change your business for the better.