Businesses often think CPA’s (accountants) are there just to do their taxes, but they can do so much more.
This article will help you understand how the right accountant could be the key to growth that your business needs.
Do you really need an accountant?
You might be wondering why a simple organization like yours needs an accountant? You may have only a few employees, have a steady stream of revenue, and basic bookkeeping and accounting software that has worked fine thus far. Even if things are going well, in business as in life, there is always room for improvement, especially if your company is positioned for growth. Perhaps your company is working on a new contract, planning for a sale, or about to make a big purchase. An accountant can provide guidance and objective advice on the best way to prepare for growth, plan for succession or alternative financing options. And with an added bonus on how this will affect corporate and personal finances and tax implications, this advice is often very well-rounded for maximum benefit to you.
What the right accountant can do for your business
Accountants are more than a human calculator, and they provide more insights than how to file your tax returns. The best accountants act as your chief financial strategist and advisor, making a world of difference in how you operate your business.
For example, if you find your time and energy is sucked through tedious tasks like tracking transactions, processing payroll, and following up on unpaid invoices, an accountant can transform your business. A modern accountant can assist you with the latest applications to automate these processes and implement easy to follow systems. This minimizes stress, effort, costs, errors, and most importantly, gives you peace of mind. In addition, you will have more timely and accurate information that allows you to make better decisions on how to grow your business.
As an owner, you might feel that you are juggling too many responsibilities. It’s easy to get lost in the details and lose focus on the bigger picture, or to get caught up and forget to cross your t’s and dot your i’s.
A good accountant will work hand in hand with you to develop goals and measure performance through key metrics. Accountants can set up affordable and easy-to-use software for you to determine how your business is doing. Implementing strategy and measuring performance gives you insight into various aspects of your business so you can fix and foresee problems, before they become major issues which cost more time and stress.
The modern accountant can help you manage the following:
- Business Strategy
- Cash Flow
- Consultation and Support
- Business efficiency
- Business inventory
- Financial Planning
- Estate Planning
Minimizing risk by outsourcing your finances
Hiring an accountant is also an act of risk management. Your accountant will work with you to understand cash flow and minimize your liabilities. Even the most profitable firms are susceptible to running short of money without proper planning. Observing patterns, your accountant can devise a spending plan, show you how to establish a cash reserve, and help you avoid unnecessary debt. Additionally, they can highlight areas in your business where there can be some other liability exposure and point you to possible solutions.
No man is an island – and nowhere is that truer than in entrepreneurship. Even in the smallest of firms, owners can’t wear all hats. Owners should operate their business like the coach of a professional sports team. Like coaches, owners should have a team of advisors to develop the best strategies. One of the most valued members is the accountant. Your accountant should come highly recommended and highly qualified. Looking at the bigger picture, they help to devise strategies to keep your business afloat in the long term.