Why do so many businesses need a bookkeeper or an accountant if . . .?

Discussion in 'Growing and Managing a Business' started by V Maynard, Mar 16, 2011.

  1. V Maynard

    V Maynard
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    RANT: There is so much to starting a business that it's beginning to take its toll on me. I just keep finding out more crap. I thought I could just start a business with a manager and some employees but no! There's nightmarish paperwork to be done. I need an attorney, then I need investors, then those investors appoint board members, then those board members appoint a president secretary and a treasurer for my company, MY COMPANY! Oh and the board can fire you, even if you're the CEO of the company which you started with your money time labor blood sweat and tears. WOW!

    QUESTION: But anyways, I'm a little confused, why do so many businesses need a bookkeeper or an accountant if the board of your company appoints a treasurer anyway? Is it because my business will be a corporation? Also, who pays the treasurer?
     
  2. ArcSine

    ArcSine
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    If you start a company with "your money", then no investors required; problem solved.

    If on the other hand your biz won't even make it out of the starting gate unless you persuade investors to place their money at risk in your venture, then these investors will (as you and I would as well) insist on various measures and controls to ensure the safety of their investment.

    A treasurer is an officer of a corporation, and hence is paid by the corp. Whether or not the company needs an accountant or bookkeeper depends greatly on the size and scope of the biz. In a very small (read: tiny) operation, you might have a single individual serving as accountant and treasurer. But at any size above a micro-biz (and especially one large enough to require outside investors) the functions of accounting and treasury are way too much for a single person and must be segregated.

    Before they place a single dime into a company, outside investors will insist that the corp has on board a strong finance type in the Treasurer / CFO role (for various reasons, this is one of the means by which the investors protect their investment). But the Treasurer will spend his/her days dealing with many issues other than the day-to-day bookkeeping, and so someone else (usually reporting to the CFO) will handle that stuff.

    Cheers, and best of everything with your new venture!
     
  3. angel888

    angel888
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    The accountants and bookkeepers has a very big role in the company. He checks the books of the company, and see if there are losses and profits. :)
     
  4. CloptonCapital

    CloptonCapital
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    You don't need all of this. Read more, learn more and use other successful people as examples. The books and such can be done without an in-house accountant and such.
     
  5. firstchoicecar

    firstchoicecar
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    Accountants are good in that field, in any financial activities he or she determine if you are loosing or gaining, so it is a need for your company.
     
  6. rithika

    rithika
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    Many small business owners get into trouble as they fail to have the bookkeeping records. Knowing the necessity and the importance of bookkeeping will make the job easier and would be a key to the inevitable success of your business, as it helps to measure how well the process of the business is on-going...
     

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