If you’re only using an accountant to file your business’ taxes or keep your books, you may be missing out. According to a recent Wasp Barcode Technologies survey called the “Small Business Accounting Report,” less than half (40%) of small business owners see themselves as being extremely or very knowledgeable about finance or accounting matters.
If your company has shareholders or a board of directors, you’ll probably need more than an accountant, but this isn’t the situation of most small businesses. The truth is that there is much more that an accountant can do for your business than report numbers and file tax forms.
Here are eight ways that the right accountant can help your business grow and prosper.
1. Help with Tax Planning
The number one reason that small businesses hire an accountant is for tax preparation service, with 71% of small businesses making this choice. But, just 30% turn to an accountant for tax planning advice.
An accountant can help your company remain in compliance with regulations as well as reduce its overall tax obligations. But this needs to be an ongoing process, not something that’s reviewed once per year.
2. Advice on Legal Structure
According to the Small Business Administration (SBA), 70% of small businesses are structured as sole proprietorships. While this is the simplest way to structure your business, it may not be the best.
An accountant can help your company choose the best legal structure that will minimize tax obligations as well as limit the liability of business owners from issues related to the business.
3. Guidance with Payroll Compliance
Many companies outsource their payroll function, but just half (50%) of small businesses ask their accountant for help with this essential task. Unfortunately, payroll taxes are among the biggest non-compliance issues with businesses, which could involve steep fines.
Your accountant can help your company comply with all payroll requirements and put a monitoring system in place so that you won’t struggle with cash flow problems when your business grows.
4. Fixing Cash Flow
Speaking of cash flow, this is the primary issue that small businesses face when it comes to stifling growth and even survival. If your company has clients that pay late, unexpected expenses, or inefficient cash management practices, it is likely going to struggle.
An accountant can help your company map out your cash flow trends and put some systems in place to balance the inflows and outflows of cash. When you get a better handle on your cash flow, this can help your business grow.
5. Managing Debt
While many small businesses carry some debt, an accountant can help you better understand the difference between good and bad debt. When you work with one of these professionals, you can get rid of toxic debt by coming up with repayment strategies and get the best terms for any new debt.
6. Creating a Working Budget
Budgeting can be a tough exercise for a small business without the right guidance. But it’s essential because this is your foundation for your operations and business growth.
An accountant can help you establish a realistic budget that reflects accurate numbers as well as your business goals. This can even help your firm get rid of unnecessary costs.
7. Strategic Financial Planning
If you want your business to grow, you’ll need a strategic plan. An accountant can help you answer key questions such as how many staff you can afford to hire and what your sales targets should be for the coming year. You can also receive guidance regarding any additional financing needed for growth.
8. Help with Receivables/Collections
More than half (51%) of small businesses surveyed said that collections and accounts receivables were the top concern of their business. If your company is forced to wait on payments and chase down customers, an accountant can help you set up a system to handle unpaid invoices more efficiently.
If your company is ready to jumpstart its business growth, find out how Capital Business Strategies can help. We provide bookkeeping, tax, accounting, and payroll services to clients throughout the Warren area. Contact us today at (330) 856-4732 or send us an email to learn more about how we can help your business achieve its goals.