Every micro, small and medium-sized business owner truly needs to come to grips with his or her accounting principles and practices. If the minimum study time has been expended, it is quite possible that the business owner will at least be able to comprehend the very basics of the accounting principles. But as to the practices, that appears to be an entirely different matter altogether.
Not and never an easy bundle of tasks to master. Which is probably why so many micro, small and medium-sized business owners go through the expense of hiring a qualified accountant to study their books, particularly around the time when tax records and/or dividends need to be declared. Owing to the practicalities of both the accountant’s work and the rate at which retail-oriented businesses operate, no company is going to have a full-time accountant on the staff.
Or will they? This is entirely possible and should be explored if the budget allows for this. But perhaps this is something that the contracted accountant could advise on. In all probability, an accounting management system for sales should be budgeted for as well. Antiquated cash registers are not reliable in terms of keeping an accurate record of daily sales receipts. But the computer based system allows the company MD to view receipts, at a glance, at any time of the day he or she chooses.
He or she is not required to sit with a calculator to crunch and re-crunch numbers. Nor does the accountant, for that matter, although it could be said that owing to force of habit, he or she may well choose to do so. Nothing wrong with that, it could be supposed. But to compare and contrast, see if what the accountant has computed matches exactly what the system has.