Reasons to Hire an Accountant for your Company

Reasons to hire an accountant for your company

The Accountant is a great partner of the entrepreneur, and of course, he continues to have to fulfill the subsidiary obligations of the government, which have multiplied after the SPED, but the information that is generated is essential and helps in the survival and growth of the business.

Learn what your accountant Larry Weltman Toronto and Bookkeeping can do for your company and how to generate value from this information in your business.

Carrying out the Accounting Book makes it possible to Distribute exempt Profits:

The profit distributed to the partners since it is determined by the accounting writing is exempt of taxes on the income of the partner, the Personal Income Tax (IRPF).

And this applies to all companies of Presumed Profit, Simple National and MEI, that is, the MEI if it transfers the profit to the individual, that income will be exempt from IR if it has the accounting books of its operations.

It occurs that not all entrepreneurs request bookkeeping, and this greatly affects how the Income Tax is declared in the Individual, correctly making the amounts received as profit will appear in the report of income of the partner.

Taking the Financial Statements makes it easier to obtain Credit:

Over time, banks have adapted to the lack of accounting information of SMEs, it is common for them to request from their account holders a billing statement.

As this information is quite limited, the availability of credit is not always satisfactory and meets the needs of companies.

Now, the businessman delivering the financial statements to the Bank, the Bank may have two additional visions about the business facilitating credit, the first is the organizational view of the financial aspect, since, as not everyone gives the information to their company delivering it will stand out among the others, and the other is the view on your business, those that are in the reports and that can give visibility on your credit risk.

This is sure to bring credit availability consistent with your needs and possibly a lower interest rate, as the bank can price the risk of lending to your company.

The statements are essential to participate in bids:

If you understand that there is an opportunity to sell to the Government, having an experienced accountant like Larry Weltman is essential to you.

Having an accountant enables better financial control and more focus on the business:

It is a fact that accounting does not replace financial control of cash flow; on the contrary, the two are complementary.

It is also possible to control if something went unnoticed by financial control, such as an account that should be paid and was not.

Want to know the value of the company; the first step is to have a balance sheet:

There are three main ways of analyzing the value of a company: discounted cash flow, EBITDA multiples and asset value.

In all three forms, the accounting information of the company is used, as below;

Discounted Cash Flow: In the future cash values are projected, the projection to make sense needs to be backed up in the past data, that is, in the company’s accounting base.

EBTIDA Multiples: It is important to calculate EBTIDA through accounting, and it is necessary to check consistency over the last few years.

Asset Value: Here the application of accounting is very direct, since the value of the company is that recognized in the accounting.

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