As a small business, there is a possibility that either it is a startup or a sole proprietorship. In both scenarios, there is a need for an accountant to manage accounting practices of business. Over a while, a small business accountant not only came out as an accountant’s role but it plays many roles that we will discuss below-

General Accountant –

 On the front hand accounting is the main area of an accountant. For a small business, a small business accountant performs basic functions like budgeting, controlling expenditure, ledger, payables, etc. Generally, small business owners do not prefer to hire an accountant as they believe they do not need and can themselves do basic accounting functions but having an accountant can show a halfway to your success. 

Financial Manager –

 For a small business where there are fewer accounting practices as compared to a large firm, A accountant performs the role of the financial manager. A financial manager who manages all the financial transactions held in an organisation. As a financial manager of a small business, an accountant performs different practices-

Financial Planner – 

Financial planning is one of the essential tasks that financial managers practice. Planning for finances in advance makes achieving financial goals easy by controlling income and expenses. Financial Planning reduces uncertainties that a business can face while operating a business in a dynamic environment.  

Investment Advisor- 

As for small business that grows steadily, there are times when the owner plans to invest. Investing decisions are very crucial and can sooner or later add on to the owner’s assets. As a small business advisor, individuals analyze the opportunities and provide the best advice regarding security and legal compliances.

Business Structuring-

A small business where the owner is handling everything can be messed up with things and make practices complex. A financial manager contributes to business structuring or more specific financial structuring in business. Business structuring makes things organised and evades chances of mistakes while performing tasks.

Tax Accountant- 

While running a small business an owner has to lodge different tax time to time. Being busy with other operations owners might miss tax lodgement. Here a small business tax accountant with accurate documentation meets all the requirements of tax filing. Taxes are not limited to income tax or sole trader tax return but along with that, he pays late taxes that you have might miss or payroll taxes for you. With strategic tax planning, an accountant can plan taxes smartly for a smooth taxation process.

Fund Raiser-

Every business needs funds to grow and when it comes to small business it became more important. For a small business, we can picturise an accountant as a fundraiser also. For funds, we generally apply for loans or look for investors who can invest in our business. In both conditions, we have to show our financial statement that represents our goodwill in front of them. Maintaining financial records accurately and precise manner can help to attain the opportunity.

Ending Note-

Many small business owners ignore these factors and believe that an accountant’s work is only to keep books updated that anyone can do. But from the above-mentioned point, one can easily understand how important an accountant is for small businesses. Owner gets busy with their daily task and might forget about the financial factors that can affect adversely, in contrast with help of an accountant one can find many growth opportunities.