Some small business owners take a completely hands-off approach to their finances, preferring to turn everything over to their accountant. There’s nothing wrong with that if that’s how you operate so long as your accountant keeps you in the loop on important issues.
However, you should know which accounting tasks your accountant can handle, and which are outside the realm of his or her expertise. This ensures that you’re working with the most appropriate professionals for your small business needs.
When It Comes to Taxes, Your Accountant Can Do More Than Prepare Your Return
Most individuals and small business owners know that accountants prepare tax returns and are very busy from January to April. What they may not be aware of is that accountants can help them with tax planning throughout the year.
According to a Small Business Report for the accounting field, more than two-thirds of small business owners use the services of an accountant for tax return preparation but less than one-third utilize their expertise for tax planning.
At Capital Business Strategies, we pride ourselves on working hard throughout the year to help reduce the tax burden of our clients when it comes time to file their return.
Hiring an Accountant Will Help You Keep a Positive Cash Flow
While maintaining a positive cash flow can be crucial to the success of any small business, it can also be extremely challenging to do. Your accountant understands the ebb and flow of revenue expenses and will provide strategies to ensure that you always have money immediately available when you need it.
In addition to organizing your cash reserves, your accountant will help you prepare a budget to keep spending in check for your small business. That way you know you always have money in the bank.
When to Hire a Controller Instead of an Accountant
If you have a board of directors or stockholders, this goes beyond the typical accounting tasks performed by most firms. You would be better off in this situation hiring a controller.
This person can even handle accounting staff. His or her main job is to develop, implement, and continually update a plan to protect your business assets.
You might also consider hiring a Chief Financial Officer (CFO) if you feel that you need someone to handle the financial aspects of your business from more of a big-picture perspective.
With advice from your CFO, you can feel more confident in decisions such as pursuing a merger or acquisition and entering a new market. It’s this person’s job to make or help you make decisions for your company to maintain or increase its profit margin.
See What Capital Business Systems Can Do for You Today
The above are just three examples of what an accountant can and can’t do for your small business. We invite you to learn more about our services and contact us today to request a consultation.