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Thursday, 28 December 2017

A Serious Company Needs A Department That Deals With Accounting Los Osos

By John Barnes


It is hard to imagine a world where there is no money. It seems that without money, all life on planet earth will fail to exist. According to many financial professionals in the world, money is life. It is what makes planet earth to move round. In the world of commerce and business, money is at the heart of all operations. That is why serious companies normally have a department that strictly deals with finance and accounting Los Osos. These are the two major issues that should be prioritized by the management of a company if success is desired.

At the end of the day, business success will be the product of the finance department playing its roles well. If professionals in this department sleep on their job, business failure will be the order of the day. When accountants are incompetent, there will be cash flows issues and it will not be possible to finance even the most basic business activities.

The business of the accounts department will revolve around updating the various books of accounts. There are books that record revenue and those that record expenses. There will also be the trial balance, which facilitates accuracy of the various books. An accountant should observe a high level of accuracy and precision when carrying out his various financial duties.

Having accurate and precise books of accounts is just but one side of the equation. The other side involves preparing and presenting the end of year statements in the best manner possible. Ultimately, the balance sheet and the profit & loss statement should be presented to shareholders, suppliers, the general public, and to the taxation authority for the purpose of determining tax.

Under the accounting department, there might be a sub-department that deals with auditing. It is important that the work of one accountant is audited by another accountant so that to identify the errors of omission and commission. A professional can knowledgably omit a particular entry with the intention of committing a fraud. Some errors are normally done unknowingly.

For this kind of department to prosper, there will be need for a staff. There should be people who carry out the various departmental activities. Junior staff will deal with the simple issues. They will be the clerks who are concerned with the books of original entry and updating them. Senior staff will mostly deal with consultancy activities.

Great talent is not easy to find. The finance department should invest in talent acquisition. That can involve scouting for talent in institutions of higher learning such as colleges and universities. Finding the right talent is one thing. The other important issue is maintaining that talent. That will require a good pay package and nice working conditions. Great talent is worth keeping.

The typical structure of a company will involve having departments. At the apex, there will be the office of the Chief Executive Officer (CEO). There might also be the office of the Chief Financial Officer (CFO) who will be in charge of running the accounting department that plays a central role in the success of an organization. Accounting done right translates to profit maximization.




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