The Importance of Good Accounting for Large Businesses
Many sources discuss the importance of having good accounting for small businesses, but what about large businesses?
The bigger your business gets, the more complicated your finances become. Large businesses have higher earnings, more vendors and clients, and in many cases, more employees with larger salaries and benefits packages compared to a small startup. They may also qualify for more tax credits and deductions as their business expense list grows.
The quality of your accounting and bookkeeping can make all the difference in your business’s bottom line, especially come tax season. That’s why it’s critical for any large business to invest in good financial professionals to stay on top of ever-changing regulations and help you manage your cash flow.
Here are a few key reasons why proper accounting for your large business is non-negotiable.
1. You’ll know where you can benefit from deductions.
A good business accountant will be able to find tax deductions for you that you may not have known about, or maximize the ones you did know about. Even small deductions can add up for big savings at the end of the year.
2. Good accounting can reduce your risk of an audit.
The thought of a tax audit by the Internal Revenue Service can cause even the most organized business owner a lot of stress. Audits can be expensive and overwhelming, but an accountant can help ensure your finances are on track to help you avoid an audit or, in the event you do get audited, help ensure a smooth process with the IRS.
3. It will help you maintain a realistic budget.
If you want to avoid overspending on your business, you’ll need to start with a realistic budget. An accountant can help you pare down your business expenses and set a budget that reflects your current and projected revenue.
4. You’ll remain compliant with changing tax laws.
Every U.S. business is required to follow certain federal and state regulations regarding their tax obligations. With insights from a trusted accountant, you’ll always be on top of your tax liabilities and understand what you owe.
5. It can make payroll easier.
A good accountant can help ease the burden of payroll. In addition to ensuring employees get paid on time and in the correct amounts, payroll assistance can include:
- Monitoring employee paid time off
- Managing payroll audits
- Ensuring payroll adheres to all local and state level laws such as overtime payments
- Resolving any payroll issues that may arise
6. You’ll be better able to manage and monitor cash flow.
Cash flow is an incredibly important part of any business’s financial health. The more efficient and accurate your accounting processes are, the better picture you will have of your company’s cash flow.
Formal cash flow statements include information on changes pertaining to all cash and cash flow equivalents of business. It also notates business cash flows through all financing, investing, and operating transactions. The accountant who helps you prepare these statements can help you interpret and analyze them to make better business decisions.
7. You can evaluate and improve business performance on an ongoing basis.
When you regularly evaluate business performance, you can understand how to improve it. A good accountant can provide insights on:
- Opportunities for your company to grow.
- Better business planning to help you meet your financial goals.
- Where to cut expenses and where to invest more.
Looking for a top-rated CPA firm to help with your large business accounting needs? Contact Miller & Company today to schedule your free consultation.