One of the industries with a growing number of customers is the fashion industry. With the increase in the number of customers, the number of sales has also increased. It is never so easy to manage your accounts and finances with such a growing number of customers. Businesses or, more precisely, fashion industries necessarily need an accountant to watch their accounts while they focus on making decisions for the future of business based on the records provided by these professional accountants.
Keep scrolling down this article to know the realities of having an accountant on board and the benefits they serve to the fashion industry.
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Top 7 roles and responsibilities of an accountant for fashion firms
Every business needs someone to look after their finance and matters related to money etc. Similarly, the fashion industry needs a professional accountant to deal with various subjects associated with their business and growth. These professionals can benefit a business by performing their duties and responsibilities in several ways.
Following are some of the roles and responsibilities of an accountant in the fashion industry.
1. Financial advice and guidance
The fashion business has to be wise and sharp to identify the areas they need to spend more amount and which areas are causing more expenses to their business. Having an expert accountant on board is a great relief for such businesses. These accountants will provide them the financial advice and support, making the business grow stronger. These professionals will assist you in finding ways to improve your business progress and growth without disturbing the profits you are making already.
2. Tax advise and support
The fashion industry is the one in which the profits earned in a year are different from the previous ones, and in this regard, the tax amounts will also vary. An expert accountant will help you estimate the correct amount of tax you have to pay by managing your financial records and calculate the exact amounts of your assets and business income. Businesses hire the best accounting firms in Dubai to avoid tax calculation and payment complexities and leave it on the experts to deal with its complications and avoid any barriers in the path of your business growth.
3. Daily transactions and cash management
Professional accountants can help the fashion industry estimate their daily transactions and calculate the amount they managed to earn and spend in a day. You can keep a record of the number of sales against the amount earned in a day so that these documents help you in calculating your net profits and loss by the end of the year or accounting period. You can also identify which days have higher transaction rates and your customers’ most preferred hours to purchase to stay active and open in those days or hours by looking at these records.
4. Asset calculation/ worth calculation
The fashion industry can evaluate and calculate their business worth by calculating the worth of their assets. An accountant will help your fashion industry know its value by calculating the value of inventory. Inventory audit is one method that helps manage the inventory and estimate the worth of the inventory a business owns. Knowing your business’s worth will help you understand your business’s stability and what decisions you should make to make it more stable.
5. Revenue from each item/ product
In every business, some products have higher sales generating more revenue and profit than other products. A professional accountant will help businesses know the profits earned from a product and which products result in lower sales and lower profits. They do this by arranging each item against its sales rate and amount on excel Read Full Article sheets which are easier for business owners and management to read and interpret to make effective decisions.
6. Estimation of COGS and operating costs
The fashion industry is one of the industries with an increased number of goods sold, and you always need some amount to prepare your products and deliver them to the end customer. There are few costs in a business without which you cannot perform your business operations, and we call these costs operating costs. Fashion industries must have an idea about these operating costs and know how much they need to spend on manufacturing products, and this is only possible with an expert accountant on board.
7. Consistency of business
It is crucial for businesses to know their progress and know how well they are doing. Without knowing their performance and progress, they will not be able to make better decisions. One of the methods for identifying a business’s progress is conducting audit activities and knowing the consistency of your business activities. It means to find profit levels in comparison to the expenses and to identify whether you have succeeded in increasing your profits from the past years or not. Hire the best accounting firms in Dubai to reach expert accountants that will analyze your business’s consistency through various accounting activities to help you make better decisions for your business’s future.
Hire an accountant for your business today!
Keep track of your accounts and the variations occurring to them so that you can better understand your business’s progress and performance and become able to make better decisions for its future. An expert or a group of experts is all you need to keep track of your business finance and accounts.