subject: Delving Into The Duties Of Accountant In Small Businesses [print this page] SME is an acronym for Small and Medium Sized Enterprises. Even though loads of of the multinational organizations and government trying to engage he services of this group for supporting them on finance issues, there is no explanation for a SME globally.
For the purpose of accounting, sections 382 and 465 of the Companies Act 2006 regards a small company as the one that has a turnover of less than 6.5 million, a balance sheet total below the threshold of 3.26 million and about 50 employees or less. A medium-sized company has a turnover of about 25.9 million or low, a balance sheet total of not in excess of 12.9 million and not over 250 employees.
In simple words, one can say that small business is a business which is started with no or a low capital. In this situation, the most important things a business owner considers are how to cut the expenses of the business and ways to expand the funds.
The major area a business owner should mull over is accounting. They have two options- hire an accountant small business or doing the task themselves. If the person starting the business has a strong accounting background and a deep understanding of managing business finances, then accountants' service is not needed. On the other hand, if he or she lacks the solid knowledge of accounting, then it would be wise to hire an accountant as accounting operations are needed to be handled accurately in order to achieve success in the short-term as well as long-term. An accountant performs vital responsibilities at the time of commencement of business and during the routine business process.
At the time of starting-up of the business, the accountant has to determine the suitable form of business ownership-sole proprietorship or partnership or company or some other form. Conducting the financial analysis in the business strategy and decision regarding the type of accounting software to be used is also the task to be performed by the accountant at that time. In addition, they give advice regarding the opening of a bank account for business and ensure that accounting procedures are in accordance with the government regulations.
During the normal course of business, accountant is required to record the business transactions in an apt manner. He or she also has to manage the payroll systems. In addition, taking care of the taxes due and their timely payment is the responsibility of accountant.
Thus, the services of accountants East London are needed at every point in the life of the business from its birth to its end. A small business also has the option of engaging services of chartered accountants East London to enhance its development.
