Marketing and branding are passions of mine. I find them truly interesting and to tell you the truth, I am pretty good at them. I am the idea person, the creative, not the accountant. As an Entrepreneur I know my strengths, my weaknesses and how to plan accordingly. Balance sheets, cash flow statements, and the thought of payroll are essential, but daunting. With the possibility of a start-up venture on the horizon, finding the right accountant is essential to the success of my business. As an entrepreneur, I know my limits and accounting is just outside of my reach.
Choosing an accountant that is the right fit for your business is essential to the daily operations that venture. Your accountant is privy to private financial, personal and business information. He or she will gain detailed information on your business overtime and they can either become your best ally or your biggest problem. As with most professionals, all accountants are not created equal and personally, I would like the best accountant for my business that I can work into my budget.
Your accountant will not only take charge of recording your financial information and formatting it into Financial Documents including your balance sheet, income statement, cash flow and tax returns. "But a good small business accountant does much more than just record transactions and passively generate documents-they actively analyze, interpret and convert that data into actionable business intelligence" (Gaebler.com). Your accountant (I prefer financial ally) should be willing and able to asses the current financial situation of your business and guide you in the direction of growth you wish to pursue. For example if you currently rent your retail storefront, but are interested in purchasing a space in the future, your financial ally can assess the situation and determine which opportunity is best for the growth of your venture.
Understanding that your personal finances directly correlate to those of your business, your ally should also provide personal financial. Whether it be retirement planning or advice on investments, he or she should guide you towards a stronger financial position over time. Your accountant is a trusted business and personal advisor assessing specific problems within your business and offering specific solutions to meet your needs.
As an Entrepreneur it is also important to be sure of your potential accountants certifications and skill sets. All accountants are not Certified Public Accountants. " A CPA has a surpassed accepted financial education levels, passed state-administered tests to prove competency and periodic re-certification exams" (Gaebler.com). While this depth of knowledge is excellent to have on hand in your business, it often will also be more costly. Many success full accountants can provide the resources essential to the financial operation of your business and many may not be a CPA. Most importantly choose an accountant that is an ideal fit for you and your business.
Choose an accountant that fits well with you and your organization. If you are civic minded and community involvement is important to you, find an accountant that shares similar interests. Overall, you the business owner will know if the accountant in front of you is the best fit for your business. Do your research, ask for references and go into the process with the knowledge of what exactly it is you are looking for. If you are like me and the thought of tackling the accounting processes for your business seems overwhelming, hire someone. Find your financial ally!
How to Choose an Accountant. Gaebler.com. 10 Jun, 2010.< http://www. gaebler.com/Choosing-Accountants.htm>.
Monday, June 14, 2010
Saturday, June 5, 2010
Financial Accountability, in the name of Enron and so many more
Scandalous to say the least...the subject of Financial Accountability, especially in terms of upper level management, has made its way to the media spotlight. With large conglomerates including the household names of Enron, WorldCom, Lehman Brothers and more declaring bankruptcy, while management to continues receive million dollar bonuses, stockholders and often employees are often left out to dry. Management must be held accountable for their actions and decisions in regards to the financial well being of their companies.
Financial Accountability refers, "to the rules that businesses (both large and small) must follow to be accountable to their stockholders and stakeholders and the general public” (Ehow.com). Management must be held accountable for effectively conducting the financial activities of the business as transparently as possible. Rules/procedures, a well-defined financial accountability structure, should be set in place through all key principles: planning, recording, internal controls and monitoring.
Accountability of various procedures throughout the accounting process are often delegated to set individuals by a governing group within the company. These individuals become the delegated authority to handle various activities throughout the financial process. Activities may include purchase requisitions, invoicing, invoice payment, expense reimbursement and more.
According to the financial accountability procedures set forth by UC Santa Cruz, “each individual is accountable for successfully completing his or her assigned activity.” They go further to state that financial activities involve processing a financial transaction in conformity with the set control standards on campus and that each financial transaction must have an audit trail leading back to the initial documentation. UC Santa Cruz is only one example of a clearly defined accountability process.
Regardless of whether a company has a clearly defined procedure to maintain Financial Accountability within the organization, effective follow up/monitoring must be conducted to ensure that key processes are followed. A financial audit, “is the review of the financial statements of a company or any other legal entity, resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete and fairly presented” (Wikipedia.com). An audit provides the assurance and credibility to the sound business decisions of a company. It also serves as a method to reduce the possibility of fraudulent business practices. A Financial audit adds overall value to the shareholders of a company through the assurance of accurate accounting and financial positioning.
Financial Accountability. Ehow.com. 4, June, 2010.
UC Santa Cruz, Financial Management. 4, June, 2010. < http://financial.ucsc.edu/ Pages/Management_Accountability.aspx>
Financial Audit, Wikipedia. 4, June, 2010. http://en.wikipedia.org/wiki/Financial_audit
Financial Accountability refers, "to the rules that businesses (both large and small) must follow to be accountable to their stockholders and stakeholders and the general public” (Ehow.com). Management must be held accountable for effectively conducting the financial activities of the business as transparently as possible. Rules/procedures, a well-defined financial accountability structure, should be set in place through all key principles: planning, recording, internal controls and monitoring.
Accountability of various procedures throughout the accounting process are often delegated to set individuals by a governing group within the company. These individuals become the delegated authority to handle various activities throughout the financial process. Activities may include purchase requisitions, invoicing, invoice payment, expense reimbursement and more.
According to the financial accountability procedures set forth by UC Santa Cruz, “each individual is accountable for successfully completing his or her assigned activity.” They go further to state that financial activities involve processing a financial transaction in conformity with the set control standards on campus and that each financial transaction must have an audit trail leading back to the initial documentation. UC Santa Cruz is only one example of a clearly defined accountability process.
Regardless of whether a company has a clearly defined procedure to maintain Financial Accountability within the organization, effective follow up/monitoring must be conducted to ensure that key processes are followed. A financial audit, “is the review of the financial statements of a company or any other legal entity, resulting in the publication of an independent opinion on whether or not those financial statements are relevant, accurate, complete and fairly presented” (Wikipedia.com). An audit provides the assurance and credibility to the sound business decisions of a company. It also serves as a method to reduce the possibility of fraudulent business practices. A Financial audit adds overall value to the shareholders of a company through the assurance of accurate accounting and financial positioning.
Financial Accountability. Ehow.com. 4, June, 2010.
UC Santa Cruz, Financial Management. 4, June, 2010. < http://financial.ucsc.edu/ Pages/Management_Accountability.aspx>
Financial Audit, Wikipedia. 4, June, 2010. http://en.wikipedia.org/wiki/Financial_audit
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