Accounting: The Key To Success In Business
Whether you are already a business owner or considering starting your own company, it is in your best interest to acquire some accounting management skills. Knowledge in accounting and financial management are among the essential skills for successfully carrying out an entrepreneurial project. We will explain to you why accounting is the key to success in business.
Accounting is essential to the financial health of the company.
Accounting is a strategic field in the success of a company. Indeed, contrary to what is sometimes imagined, it is not limited to verifying numbers and financial operations. In large companies, chartered accountants collaborate with other departments such as marketing, legal services, communication, and human resources.
For a business owner or a young entrepreneur, having accounting knowledge allows for improving the profitability of their company. There is a real interest for any business creator or company manager to pursue training in this field.
Thanks to online training, it is now easier to undertake a professional retraining or to supplement one's initial training with a BTS in accounting management. This diploma, which is accessible with a high school diploma, provides a solid foundation in various areas: administrative management, taxation, labor law, public procurement code, and of course the mastery of accounting software.
Skills in this area allow for in-house accounting management.
In France, maintaining accounting records is mandatory for nearly all businesses, except for micro-enterprises which benefit from simplified accounting. For a business owner, having skills in this area primarily helps to facilitate the internal management of accounting.
A competent entrepreneur can manage their own accounts and does not need to use the services of a chartered accountant. Indeed, there is no legal obligation to outsource this aspect of business management to an external professional, either partially or in full.
Keeping accounts internally is less expensive and allows for increased efficiency, especially since there are now many software programs available to ease the accounting process and ensure compliance with legal obligations.
Having financial management skills also helps to limit the risk of errors. A properly trained business owner can directly oversee the accounts and incorporate accounting into the commercial management of their company. They secure their business by properly completing all mandatory end-of-year formalities, as well as monthly, quarterly, or annual declarations to public bodies such as URSSAF and the tax authorities.
Accounting contributes to the proper management of the company.
Contrary to what some entrepreneurs might think, accounting is not just about lining up numbers and doing paperwork. Even if some people allergic to numbers and formalities see it as a chore, keeping the accounts is a fundamental aspect of good business management. That's why entrepreneurs who have long since left the university benches decide to take training in finance and accounting through an online school.
Training in this field allows you to assess the financial situation of the company, analyze its performance, and anticipate potential financial difficulties. No entrepreneur can afford to overlook accounting formalities, as they are an accurate reflection of the company's financial health. These financial pieces of information are essential objective data for making the right decisions.
In practice, managing your company's accounting will allow you to:
• monitor your company's annual turnover.
• project the future of your activity, whether it's staying afloat or scaling up.
• anticipate a possible change in tax regime, in case certain thresholds are exceeded.
Accounting helps to prevent financial risks.
As you may have realized, accounting is not just about checking numbers and preparing tax returns, but encompasses a variety of skills.
As an entrepreneur, training in this field will allow you to better manage certain administrative and legal aspects of your business. This type of training can also be invaluable in better understanding corporate taxation in France and paying less tax.
Before embarking on the entrepreneurial journey, it is wise to train to avoid mistakes, for example in choosing the legal status and tax regime of your company. At the time of starting a business, founders do not always measure the consequences of these choices. Yet they can lead to problems later on.
And most importantly, better monitoring of your company's expenses and revenues will allow you to anticipate potential cash flow problems. Good accounting management of your company will help you assess the situation and make the necessary decisions before your financial difficulties worsen.
