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Know Why Businesses Need An Accountant or Accounting Department

December 9, 2010

All businesses, it doesn’t matter how large or small require possibly an accounting division or an accountant and that includes New Jersey CPA.

For small businesses having a qualified accountant is essential. Some small businesses can also decide to have one employee with a background in finance, perhaps with a qualification such as AAT. This may enable the business to operate and adhere to most accounting policies set out by the UK Government (taxes), Europe (duties, EU trade) and the World wide policies. For any small company it is important that the accounts are correct and thus must be signed off by a competent accountant (CIMA or ACCA) at the end of every financial year.

For larger companies, it may perhaps be required to use a full department of accounts individuals. There are many functions within the company accounts department of a small business. And one company which could really help and guide you is New Jersey CPA.

There will normally be a small Credit Control Team, whose responsibility it is to chase payments from customers, deal with customer queries and allocate payments as they arrive within the business.

Another role to consider is the role of Purchase Ledger; often this will be a one person role (depending on the quantity of invoices being received). This role is here to handle all incoming invoices from suppliers, through getting authorization from the correct departments to make payments correctly so as to not have accounts put on “hold”.

Each accounts department will also have an accounts assistant, someone who can do several small jobs from the department, but this specific role is as vital as any other within the department.

The final role directly in the accounts department in a business will often be the Management Accountant, who oversees the day to day operating of the office, but additionally prepares the month-to-month accounts to be delivered to the directors/managers of the organization.

These accounts are called the Management Accountants, and comprise of a balance Sheet and a Profit and Loss Account. The information contained within these accounts are very important to the running of the businesses and allows managers, directors and even share holders to generate decisions based on the earnings of the company.

The last person in the line is the Financial Director, who the Management Accountant will are accountable to. The Financial Director will be the person in order that everyone adheres on the policies of accounting and will keep the accounts department up to date with any changes to them, such as changes in VAT rates.

These are the fundamental things you must always remember when you search for the perfect Accountant and one company it is possible to rely is New Jersey CPA.