A business makes money through sales. Its lifeblood is the inflow and outflow of capital, but its core is accounting and finance. It is easy to make money in a bull market, where the economy is growing fast, and everyone is making more money.
The real test of a business is during a bear market when every other company is trying hard to keep away from bankruptcy. When pessimism is the prevailing mood, it is hard to forecast when it will stop falling.
It is during these times that you really need a good accountant by your side.
The Finance Person
Every business requires a finance person, as well as an accountant. These persons can be the same person, or in most cases, one person and a whole department of people. These people know the real state of the company. They know how much is the inflow, and the outflow.
They know if the business is bleeding, or if it has a great return on investment. Just in case you need help with fielding people in your accounting department, you can just pick up a temp at a finance and accountancy recruitment agency in London.
The trouble with finding good personnel is that they may not be a good fit, or they may not have an appreciation of the business.
Financial Records and A Company’s State of Health
Accountants and auditors bring a professional view to the financial standing of a company. The basic and most important job of an accountant is to prepare financial records. Also, accountants are also tasked to examine financial records.
They can find out a lot of things about the company, and the industry in general.
Knowing these things, an accountant will be able to forecast a company’s financial future. They know what it will cost to expand, or what it will mean for the company to invest in new technology. In short, they what you can and cannot afford.