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The accounting function of the company should improve at the correct time

The accounting function of a firm is important. Because that is a supportive structure that keeps your business running. So after starting a business it is essential to continue the account function of the company if you want to reach success. And if you want to remain in your business for a long period, you must think of account function.

Initially account functions of a company commence with the effort of one or two people. Then grow in a regular manner to midsize. There is no need for a chief financial officer on the very first day. But gradually you need people with accounting experience for your help.

Account function at the beginning can be handled by part-time finance professional
At the commencement of the business, it is not easy to wish the contribution of a full-time finance person. But it needs to keep correct account details from day one. If you are not able to do it, it is better to take the service of a part-time professional.

You should accomplish the following facts regarding accounts;
  • Setup and observe your accounting system – it is better to use accounting packages such as QuickBooks. Start the company set up by making a chart of accounts and the format for financial reports.
  • Bookkeeping – entering day to day transactions and preparing checks and invoices include for bookkeeping.
  • Protecting from fraud – fraud in small businesses is not easy to control. According to reports, more than 60% of small businesses suffer from fraud and theft. So periodic checks will safeguard your business.
  • Tax preparing – you need a person for tax preparation for your company. In this case you need to take the support of an expert. Because, you will want to pay sales taxes, payroll taxes etc.
Take the assistance of a full-time bookkeeper with a part-time CFO
With the growth of the company, the necessity of a full-time bookkeeper appears. The help of a bookkeeper will not be enough. So there may be a need for an external or part-time Chief Financial Officer. The CFO should take care of the bookkeeper’s work and must ready to answer questions.

And also CFO has to work with owners in other financial activities such as; improving financial strategies, study tax planning, developing budgets, comprehend financial statements, develop internal controls, handle compliance problems etc.

Keep a full-time CFO.
At these final steps, you will get to know keeping a full-time CFO is more profitable than a part-time. At this level you have a grown internal accounting staff. Bookkeeping must be accurate for small business to survive. You need to improve your accounting staff as your company grows. Otherwise, your company will run towards danger.

Account functions of a company should start with the very first day at a foundation level. Then with the growth of the company, account functions also must build on that foundation. If it is not so, the survival of the business is at a risk. Because a successful business has a stable account functions. Therefore, to protect the glory of the company, its account section should be powerful. So as mentioned in this text; it is better to follow the regular steps of developing the accounting sector of the company.
The accounting function of the company should improve at the correct time The accounting function of the company should improve at the correct time Reviewed by ViralBlossom on July 18, 2020 Rating: 5

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