You have decided to become an entrepreneur. As a prerequisite, you have also arranged for the requisite capital requirement. The next task is to manage this capital in best possible way and here comes an important role an accountant or a C.A. will play in your organization.

It is mandatory for the purpose of calculating your tax liability to keep records of all your business transactions on day to day basis and maintain books of accounts. Here again you will need services of a professional accountant.

As an entrepreneur you may not be aware of various taxation laws applicable to your business. Any change in these laws that may affect profitability of your business. A professional in this field can guide you to take the right decision at the right time to increase your profits.

You should also know how to read financial statements like profit and loss account, cash flow statements, return on capital analysis, etc. They will provide you with the necessary insights into the performance and profitability of your company and help you take the right judgment for any financial deal. If you do not know how to read these statements, a consultant can provide a detailed analysis of the same and give you the necessary guidance.

Consider for an example that you are investing in particular equipment that can streamline certain manufacturing process. In order fulfill its capital requirement, you arranged to finance it through a bank loan. When the equipment arrived, it did give the desired result and you manufacturing process did get streamlined.

However, from the angle of profitability of the company, the equipment did not serve any useful purpose. A look at your account books will show you that your decision was wrong and the cost of equipment and the expenditure on its interest were loss to the company.

You can hire a full time accountant for your day to day accounting needs but in order to get proper guidelines, you need services of a professional C.A. or a consultant. In order to find the right consultant, you should look for the one who has a wide experience, knowledge of the laws and is handling similar assignments for firms that are dealing in the same business area as yours.