What does an accountant do for small businesses in Luxembourg?
Many entrepreneurs at the beginning of their journey think: only large companies need an accountant. But practice shows the opposite. For small businesses, accounting is not just numbers in a spreadsheet, but a whole system that keeps the business afloat.
What an accountant actually does
In a nutshell, an accountant's job is to manage and analyse financial data to help the owner of a company make decisions. But to reduce it to just "accounting" would be unfair.
In small companies, an accountant combines several roles at once. He keeps track of accounts and documents, submits tax returns on time, draws up budgets and forecasts, is sometimes responsible for employees' salaries and makes sure that everything is in accordance with the law. But in addition, he is also an advisor: he can tell you how to save money, where to cut costs, and where, on the contrary, you should invest for growth.
More formally, the accountant's responsibilities can be described as follows:
- Bookkeeping and filing: maintaining accounts, checking invoices and delivery notes, reconciling bank statements.
- Financial reporting: preparing balance sheets, income statements, budgets and forecasts to support management decisions.
- Tax planning: calculation of company taxes, filing of returns, control of deadlines, advice on deductions and representation in the event of an audit.
- Payroll: payroll, tax withholdings from employees, correct reports for tax authorities.
- Structure and strategy: tips on optimising a company's organisational form, planning for growth and cutting costs.
- Compliance: monitoring changes in taxes and laws, preparing for audits and inspections.
- Risk management: identifying errors and potential fraud.
It is important to understand: an accountant is not just a person who adds up figures in reports. He is more of a partner and navigator for the entrepreneur. It is the accountant who will explain how much the company actually earns, where the money goes, what prices are justified and what tax incentives can be used.
Thanks to forecasts and budgets, the accountant helps to plan business development: whether it is worth hiring new employees, taking out a loan or entering a new market. And during an audit, he becomes a liaison with the auditors and removes unnecessary stress from the business owner.
Of course, a qualified accountant is a professional with a high level of responsibility. Consequently, this responsibility should be well rewarded. The cost of an accountant's services varies, and much depends on the country and the level of the specialist. On average, an aspiring accountant in the EU receives between €40,000 and €55,000 per year. In Germany this figure stays around 50 thousand, and in Spain the starting level is closer to 30 thousand. International tax specialists can earn over 65 thousand euros. For small businesses, this means that the price of accounting support will vary greatly from country to country.
Entrepreneurs have several options for co-operation. It is possible to employ an accountant on staff, and then he will always be there, fully involved in the company's affairs. Another way is to outsource accounting: this can be a separate freelancer or a specialised firm. Each option has its own advantages: in the staff - constant control, in external support - flexibility and lower costs.
In Luxembourg and neighbouring countries - France, Germany, Belgium - EasyBiz.lu comes to the aid of entrepreneurs. The company specialises specifically in small and medium-sized businesses. Here you can get everything from bookkeeping and VAT declarations to tax support, financial reports and strategic advice. Conveniently, the team works in several languages and is well-versed in local regulations.
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In terms of duties, a small business accountant keeps records and checks accounts, reconciles bank statements, prepares balance sheets and reports, plans budgets, handles tax returns and, if necessary, employee payroll. Plus, he or she advises the owner on the structure of the company and helps reduce costs.
Small businesses need an accountant as much as large businesses. This is a specialist who combines the role of accountant, analyst and adviser. For an entrepreneur, an accountant is a guarantee of peace of mind: you can concentrate on development, knowing that everything is in order with the figures and the law.
