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How Many Accountants Does A Company Need?

A team of accountants in a meetingSource: Pexels

The truth is, there is no one-size-fits-all answer to this question. The number of accountants a company needs will vary depending on the size and complexity of the business, as well as its industry and growth plans. 

We will cover different-sized companies like;

  • Small businesses with between 1-10 employees: One accountant
  • Medium-sized businesses with 50 employees:  2-6 accountants
  • Large corporations with over 100 employees: Anything from a dozen to hundreds of accountants

Stick around as we unearth the correct number for your business, according to experts. 

But what if you feel your company doesn’t need an accountant? We’ve got you covered too.

Here are a few options for you:

  • Do your books yourself

Small business owners with a basic understanding of accounting principles can handle their books themselves. As long as they have time and the books are not too complex, there is no reason why business owners can’t do their own bookkeeping. This can save a lot of money on accounting fees and gives business owners a greater level of control over their finances. 

Of course, it is still important to seek professional advice regarding tax and other financial matters. But for routine bookkeeping, small business owners can definitely do it themselves.

  • Employ a bookkeeper instead of an accountant 

Bookkeepers are financial wizards who do all the same things that an accountant does and will also keep your books in order. Plus, they’re usually a lot cheaper than an accountant.

So why not save yourself some money and hire a bookkeeper instead? You’ll be glad you did.

  • Employ a part-time accountant and upskill your staff

As a small business, you may not need a full-time accountant. Why not hire a professional on a part-time basis instead?

You could also consider training another member of your team, as the receptionist, to handle easier, day-to-day tasks like journal entries and paying invoices. 

Small businesses

Up to this point, you may have done just fine doing the books yourself or employing a bookkeeper part-time. But as your business grows, hiring at least one certified accounting professional will be necessary.

There are a few key indicators that it’s time to hire an accountant for your small business:

-You’re spending too much time on bookkeeping and accounting tasks

-You’re not sure if your financial statements are accurate

-You need help preparing for tax season

-You want to free up time to focus on other aspects of your business

If you’re experiencing any of these issues, it may be the right time to hire an accountant. 

Generally, accountants and bookkeepers are assumed to be numbers-crunchers who prepare financial statements and tax returns. But the best accountants do much more than that.

A good accountant can be a small business owner’s best friend, providing valuable insights and advice on everything from pricing to operations to strategy.

A medium-sized company

A medium-sized company has between 50-100 employees and may require anywhere between 2-6 accountants. If the company is publicly traded or in a highly regulated industry, it will likely need more accountants to comply with regulations.

Rather than having many full-time accountants, medium-size companies typically have a mix of full-time, part-time, and contract accountants. This allows them to ramp up or down their accounting needs as business conditions change.

Large company

Any company with over 100 employees is considered a large company. They will have an in-house accounting department with a team of accountants led by a controller or CFO.

The CFO oversees all financial activity within the company and ensures that all financial regulations are met. The size of the accounting department will depend on the size and complexity of the business.

Under the CFO, there are ranks like;

  • Financial Controller
  • Finance Manager
  • Accountants
  • Bookkeepers
  • Cashiers
  • Accounting/file clerks

If a company has several branches, the branch accounting managers will be in charge of the accounting activities in that branch.

The company may also choose to have different accountants, including payroll accountants, internal auditors, tax accountants, etc.

In the end, a large corporation can have anywhere between 12 to hundreds of accountants. 

An accountant looking through financial dataSource: Pexels.com

What are some benefits of working with an accountant?

  • Great insights

The dynamics of accounting have changed over time. Gone are the days when all accountants did was crunch numbers.

These days, the best accountants provide meaningful insight into how well your business functions. They use their knowledge of accounting and finance to provide valuable insights that can help small businesses grow.

  • Big on saving

Accountants can help small businesses save a lot of money. They can help you identify areas where you’re overspending and suggest ways to cut costs. 

They can also help small businesses take advantage of tax breaks and deductions they may not be aware of.

While the cost of hiring an accountant may seem like a lot, the money you’ll save by working with one will more than makeup for it.

  • Tapping into tech

Purchasing accounting software can be expensive. But, an accountant can help small businesses choose the right software to provide the maximum return on investment.

For example, small businesses can use accounting software to automate tasks like invoicing and billing. This frees up time, so business owners can focus on other aspects of their business.

  • Getting organized

An organized accountant can help small businesses keep track of their finances and ensure they’re always on top of their bookkeeping. This peace of mind is priceless for small business owners with a lot on their plate.

Say goodbye to the stress of looking for supporting documents during tax season! If your accountant is smart, they’ll use programs like Envoice to automatically capture data and store it in one convenient place.

  • Peace of mind

Dealing with financial information, in its many forms, can be stressful. This is especially true for small business owners who wear many hats and have a lot on their plate.

An accountant can take some of the stress off by dealing with the financial side. This way, small business owners can focus on other aspects, like growing their customer base and developing new products or services.

Is there a better feeling than knowing your books are in safe hands, you’ve met regulatory compliance, and getting your financial reports on time?

We don’t think so.

When it comes to small businesses, there’s no such thing as too much help. So, if you’re considering hiring an accountant, go for it! You won’t regret it.

  • Continuous updating

The world continues to evolve, and so do accounting regulations. As a small business owner, you might not have the time to keep up with all the changes. But, an accountant can help you stay on top of things and ensure that your financial reports are accurate and up-to-date.

For instance, with IRS continuously updating the tax code, it can be hard to keep up. An accountant can help small businesses comply with the latest tax rules and regulations. There will be no new tax law that will pass you by.

The different types of accountants that your businesses needs

An accounting team fist pumping

Source: Pexels

Accountants are like the superheroes of the business world: they come in all shapes and sizes, each with unique skills and abilities. And just like superheroes, businesses often need more than one type of accountant to keep things running smoothly. 

Here are some of the most common types of accountants that businesses rely on:

  • General Accountants 

General CPAs are the all-around Accountants, providing a full range of services, including auditing, tax preparation, and financial consulting. Having a general CPA means your business will always have its books in order.

Plus, they can also do some of the bookkeeping tasks. Businesses can tap into the rich knowledge reserves of general accountants. 

  • Management Accountants

As the name suggests, Management Accountants guide how to best manage a company’s financial resources. They often work closely with senior executives to develop strategies for maximizing profits and minimizing costs.

By carefully analyzing data and trends, management accountants can help identify opportunities and potential risk areas. They can also develop strategies for managing costs and maximizing profits. As a result, management accountants can play a vital role in helping businesses to achieve their goals.

In times of high growth, the demand for such support can quickly exceed the capacity of a general or staff accountant. In such cases, going for the services of a management accountant on a contract basis or full-time can be an excellent way to ensure that critical decisions are made with the benefit of expert guidance.

  • Tax Accountants

Tax Accountants, not to be confused with tax advisers, work with businesses to ensure that they comply with all federal, state, and local tax laws. They also prepare tax returns and help with tax filing, planning, and structuring transactions to minimize tax liability.

Some businesses may hire full-time in-house accountants, especially when dealing with many complex tax issues. Others work with independent contractors or accounting firms. Tax accountants are vital in ensuring that businesses and individuals meet their tax obligations. And in doing so, they help ensure that the tax system is fair and efficient.

  • Auditors

Auditors are the people who keep businesses honest. They’re responsible for ensuring that a company’s financial statements accurately reflect its financial health. They may also perform operational audits to assess a company’s compliance with various regulations. In short, auditors help to keep businesses on the straight and narrow.

Without auditors, businesses would be free to fudge their numbers and present a false picture of their financial health. Whether internal or external, auditors add a layer of credibility to a company’s financial reports.

  • Cost accountants

Cost accountants are specialized accountants who focus on tracking and reducing expenses. They work with businesses to help them find ways to save money and become more efficient.

Cost accountants are essential in manufacturing and other industries with large amounts of inventory, and expenses can quickly spiral out of control. By carefully tracking production costs, cost accountants can help businesses ensure that they are not overspending on raw materials or labor. As a result, companies that bring in cost accountants can often get a better handle on their expenses and improve their bottom line.

  • Forensic Accountants

Forensic accountants are more akin to private Investigators. These accountants specialize in finding fraud, and their goal is to root out any illegal activity that might be taking place within a company.

Forensic Accountants use various techniques to uncover fraud, including financial analysis, interviews, and research. In many ways, they are the PIs of the accounting world, and their work helps ensure that businesses are run legally and ethically.

  • Project accountants

Just as there are different types of doctors, there are also other types of accountants. Generalists handle the entire financial picture for a company, while specialists focus on specific areas. Project accountants are one type of specialist.  

These financial experts help track money coming in and going out for each project, ensuring everything stays on budget. In addition, project accountants often work closely with vendors and other partners to negotiate contracts and ensure that invoices are paid on time. As a result, they play a vital role in keeping projects running smoothly and ensuring that businesses stay profitable.

Parting shot

Whether you choose to employ one or hundreds of accountants, selecting the right team is essential. Be sure to do your homework and ask around before making a decision.

The most important thing is to find an accountant that you can trust. Their work is vital, so you need to be able to trust them with your small business’s financial data.

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