Keeping the accounting of your business is the main function that comes to mind when you think what does an accountant dobut there is other activities with which this professional adds value to your business and here we tell you what they are.
Sometimes, it seems that we resort to a counter when one approaches or we receive a notification from the , but the reality is that their participation it is relevant because it is responsible for the financial information of a business. In other words, his thing is numbers and money.
An accountant has the technical and legal knowledge to keep track of the financial and accounting activity of a company. So, if you are starting a business and you do not know if you should hire the services of an accountant, from now on I recommend that you do so.
In this article I will tell you why you should go to this professional —either by hiring him directly or with an external firm— and what value he adds to your business.
What is an accountant?
As its name says, an accountant is the person who handles the accounting of a company. This involves preparing all types of financial documents such as tax returns and balance sheets.
Also, they do accounting book audits and, in short, they are responsible for fully and accurately presenting all the financial information of a business, including tax returns and payments.
Sometimes people make the mistake of thinking that accounting doesn’t have the glamor of other professions, but the truth is that accountants are those unsung heroes you turn to when, for example, the Treasury plans to audit you.
We also love them when, in April of each year, the tax authority asks us to pay our taxes, and these professionals use their knowledge to demonstrate that just as we receive income, we also have expenses.
In every company, proper money management is key to good financial health. But this need is even greater in a small business or SME, where cash flow management is key to guaranteeing a good operation.
📢 Tip: In a subject as delicate as the management of the financial statements of a company or the accounting information of an annual exercise, I do not recommend applying the motto “do it yourself”.
What does an accountant do in a company?
What an accountant does in a company does not only have to do with numbers. This expert can also be an advisor on strategic tax issues. Among his main tasks are the following:
- Advice on financial and accounting strategy.
- Management of financial information.
- Payments to suppliers.
- Information about updating taxes and other laws.
- Preparation of financial budgets.
Now I explain all these activities in more detail. Accompany me.
Advice on financial and accounting strategy
Should your company be a SAPI or a Variable Capital Stock Company? Each one has peculiarities and advantages depending on the operating model of your business. It is the same case for entrepreneurs who seek to enroll in the tax regime and do not know which one is the most suitable for their needs. Don’t worry, you don’t have to know what type of company is the best for your business. For that and other things there are accountants.
Management of financial information
Perhaps it is the most obvious and the one that everyone would answer. It’s one of the most strategic tasks in a business, so trust me, you don’t want to leave it to just anyone.
This section includes the preparation of key documents such as financial statements, monthly and annual tax returns, registration and updating of accounting books, compliance with tax obligations, etc.
Payments to suppliers
“Send your bill to the accountant”, is a phrase that we have or have been told at some time. And this is because accountants are also responsible for making payments to suppliers, because who better than them to keep track of accounts payable and liabilities (debts).
Information about updating taxes and other laws
Every year there are changes to tax laws, miscellaneous tax, etc. What better than an expert to translate in pesos and cents what this or that tax change affects your business.
Preparation of financial budgets
It is one of its main functions, since this budget is basic to establish expenses, income, liabilities and assets, in such a way that it offers an overview of the level of profitability of a business. It is always good to know how to put together a properly.
What is the profile of an accountant?
Given the level of responsibility it has in terms of handling critical information, you will realize that an accountant is a professional who brings together highly specialized skills.
To be an accountant, a person needs to graduate from a Public Accounting degree or something similar —you should not confuse it with a private accountant, which I will tell you about later—.
As I said, this person is a specialist in analysis and preparation of financial statements, budgets, balance sheets, accounting books, compliance with tax obligations. In some cases, they even see issues related to payroll and employment benefits.
For these reasons, an accountant is not only a professional in handling Excel 😜 and specialized accounting software; This professional also knows about laws —such as the , VAT, Social Security, etc.—. And it goes without saying that they are people with strong data analytics and mathematical reasoning skills.
The skills and competencies of an accountant vary according to the position they hold in a company. That’s right: this professional can be a junior or senior accountant, but they can also find work as a financial analyst, auditor or, even, the most advanced and with the most complete profile are usually CFOs or CFOs —Chief Financial Officers—.
📢Tip: Something you may not have known, May 25th is Accountant’s Day. Run and congratulate yours, even if it’s late. Remember: unsung heroes.
How many types of counters are there?
Like any profession, an accountant has areas of specialization. Some of the most common types are:
- Certified Public Accountant
- Private accounter
- Auditor
- accounting consultant
- tax accountant
- government accountant
Now I will tell you briefly what each of them does.
Certified Public Accountant
It is the archetype of the professional that I have described in this blog. What a public accountant does is keep the accounts to take care of the financial health of the organization. Prepare financial statements, tax returns, accounting books, budgets, etc. It also interprets this information for the shareholders or owners, to show the profit or loss in the period.
Private accounter
As I also told you before, you should not confuse it with the public accountant. The private is an accounting assistant who contributes to the preparation of the financial statements, but does not present them to the partners or shareholders. In any case, he talks about the financial situation of the company before directors. Although he keeps the accounts in the books, he will never be able to sign them because he does not have the power to do so.
Auditor
What an auditor accountant does is examine all the financial records of a business or organization to verify that no one has made mistakes and that the entire operation complies with tax regulations. They are quick to point out any anomalies or discrepancies in the information, but they can also provide guidance to correct the problem. The auditor can be internal —an employee who is on the company’s payroll— or external —through a firm specialized in these services—.
accounting consultant
They generally work in offices that offer advice and consultancy to companies on issues that are not usually easy to digest. Especially what has to do with financial strategy and regulatory frameworks that are related to insurance, banks, laws or even international regulations in the case of companies that have global operations.
tax accountant
What this expert does has to do with compliance with laws, rules and regulations, as well as the calculation and payment of taxes, such as
government accountant
His name already tells you where he works: in any government institution. Its functions include administering public funds and carrying out audits. There are even those who tend to investigate alleged white collar crimes. Sometimes they also help budget funds for public works projects.
These are some of the most common types of accountants, but they also often specialize as financial or investment advisors, tax examiners and collectors, forensic accountants, and more.
What does an accountant do in a small business?
An accountant in a small business can cover a wide range of activities because, in addition to the accounting tasks, may assume some related to human resources.
As I said, it will be in charge of the financial analysis and statements, the accounting book, budgets, the fulfillment of fiscal obligations, as well as the monthly and annual declarations. If your profile is very specialized, you can also offer guidance and advice on tax strategies.
For a small business, an accountant may also take on duties related to employee payroll and social security issues, as well as making payments to outside vendors.
Given the an accountant works with sensitive information about your business, it goes without saying that you have to hire oneregardless of the line of business and size of your company.
How much does an accountant earn in Mexico?
The average salary for an accountant with startup experience can range from . However, this average figure should be taken with caution, because when searching and companies looking for these professionals, they offer salaries of up to $35,000 MXN.
However, it is important to consider that determining how much an accountant earns is not easy because, As in most jobs, the salary depends on several factors. Among them are the experience and skills of the applicant, the position to be filled —if he is an accountant senior either junior—, the size and line of business of the company, the region where the company that hires him operates and, above all, the responsibilities that the professional will assume.
Some of the main activities that an accountant performs in a company are:
- Manage cash flow
- Preparation of financial statements
- Projections and accounting variations
- Compliance with tax obligations
- Carrying out internal audits
- Accounting book record
I will briefly explain what each one consists of.
Manage cash flow
This includes making payments and even collecting from a company. This task is important to ensure that the business has money for its day-to-day operations.
Preparation of financial statements
This involves analyzing the…
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