Accountant Services & Debt Management

As a business, it is essential to maintain books of account for a number of reasons. First, it helps you keep track of all important information like how much you owe your creditors, how much debtors owe you, the profits or losses for specific periods and the return on investment. It is also an important tool to prove to creditors and potential investors how well your business is doing. But most start-up businesses do not have the expertise to maintain good books especially when the entrepreneur does not have a background in finance. However, you can outsource this work to accounting firms. But, what do is the benefit of contracting chartered accountant services

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Tax Computation, filing, Planning and reconciliation

Each year, all registered businesses are expected to pay their taxes. To do this, the businesses must compute their taxable incomes and the subsequent taxes. If not properly done, this may result in penalties that may cripple the business. There are so many tax laws that business could use to plan their taxes to reduce their obligation. This is known as tax planning and it is entirely legal. Accounting firms will help you in identifying these laws, taking advantage of them, filing taxes within the stipulated deadlines and making payments as and when they fall due. There are situations where the government owes businesses tax refunds. The firms will help you in reconciling the amounts refundable and follow up to ensure they are paid in time.


Debt management

One of the major reasons businesses fail is mismanagement of credit facilities and poor management of creditors and debtors. Debt management ensures that all your debt payments are up to date and that debtors pay up in good time. It ensures that you do not incur extra penalties due to late payments. In case of changes in the business's financial position, the accounting form can renegotiate your debt management terms and conditions. In cases where the business has many debts from the same financier, the accounting firm can negotiate for a consolidation to make it easier to keep up with the payments.


Auditing

In some instances, the business may have an internal accounting department or team. However, in order to ensure that the financial statements are true and that they reflect the true position of the business, the statements and operations should be audited by an independent party. These services can be sought from an accounting firm. However if the business is bigger, these services should be sought from a specialised auditing firms.


Other services

Some accounting firms offer training on different accounting policies and standards to ensure that the business is compliant with the legal requirements. They also offer management consulting services and training to their clients. Some offer forensic accounting and can be called upon to provide an expert opinion to investors, partners or even in a court of law when the businesses is caught up in a legal battle.