Do I Need An Accountant In My Business?

Bigger companies set up accounting departments which are fully supported to execute book keeping, recording of transactions, reconciliation of books and preparation of financial statements consistently and continuously. They also set up control mechanisms through policies that govern the management of resources, procedures for resource utilization and a calendar for performing functions such as budgeting, large scale purchasing, stock taking and reconciliation of bank statements. Internal audit teams are also key in helping the accounting department and other personnel involved in operations to adhere to policies of your business regarding financial management.

Regardless of size, the accountant for your business should be competent enough to understand the Generally Accepted Accounting Principles (GAAPs), International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and for public institutions and bodies; your accountant should have the full knowledge of International Public Sector Accounting Standards (IPSAS). These set of policies will help in creating a business whose financial reporting is of good quality and reliable for use in decision making by owners, managers, the tax man and the strategy team. 

While it is desirable to all entrepreneurs that they organize their books of accountants professionally, it is also important to note that hiring an accountant may not be affordable to many small and medium-sized entities. These implies that alternative routes to the Promised Land should be employed. The first route is installing accounting software in the computer of a staff member in charge of operations or administration where an accountant is absent. Accounting software such as QuickBooks, Sage, Tally and SAP are easy to use given proper training to your staff members. Second, train your staff to accurately capture data and to conduct librarianship for your accounting files for easy retrieval. You also need to train your staff on how to navigate the KRA itax portal, how to prepare budgets, how to do bank reconciliations and how to run ETR receipts. Training works well for a fairly big staff of at least five people. For smaller companies, the best option could be outsourcing a firm that can perform tax advisory, bookkeeping and financial management at a fee. iGrand Business Plans Limited is one such firm and your accountant is reachable via okinda.p@igrandbp.com.

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