Book ‘Em Right: Accounting Tips

If a business were to be divided into several parts, finances would comprise a sizable third of it. Funds are the lifeblood of a company. Without funding, a business wouldn’t exist. This is why it’s critical that financial matters be kept straight and proper at all times. Here are a number of important accounting measures to know if you’re a business owner.

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Always stay updated with tax laws.

Staying updated doesn’t just refer to the entries in the books, although they are important. Staying updated also means that the business accountant should know, at all times, the tax laws of the state in which the business is operating. Laws are amended all the time, and it’s only prudent to stay on top of them.

Treat the books as sacred.

This means that all the information accountants hold have to be entered in the correct manner at the proper time. There can be no room for error when entering information in the books. Books are always reviewed, and a wrong entry can have severe ramifications.

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Learn to be tech-savvy.

A lot of software have been developed for managing business finances. Newer accounting programs have taken the place of old-school methods simply because they are more time-efficient. This is a huge advantage, especially during circumstances wherein numbers have to be checked and re-checked.

George Ammar is into health and fitness, as well as business and finance. When not knee-deep in business dealings, he watches the games of Cleveland’s professional sports teams. For related reads, visit this blog.

The General Roles Of a CFO

For any business to be profitable or sustainable in the long run, it should have a strong financial foundation. One of the pillars of this foundation, no matter the size of the organization, is the Chief Financial Officer. 

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The CFO’s role may vary from company to company, but the tasks or duties they are generally responsible for are the following: 

Internal controls

Good financial decisions, forecasting, and strategies can only be made if pertinent, historical information is made reported and communicated properly, which is one of the duties of the CFO. They are responsible for ensuring that all financial data are accurate and updated through the supervision of staff and implementation of needed policies and procedures. 

External relationships with financial institutions 

Businesses need good working relationships with outside financial institutions, such as banks and investors. The CFO has the primary responsibility of creating a healthy communication line with these external parties to finance the business’s operations.

Compliance

The CFO ensures that his or her company is compliant with federal and state requirements. For example, filing and paying of taxes fall under the accountability of the CFO. Another responsibility is ensuring that obligations to shareholders are met, including issuing dividends and prevention of fraud or disclosure of financial information. 

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George Ammar is a well-rounded individual with a variety of interests. Read more articles on finding success in the business world by subscribing to this blog.