As a small business owner, you probably went into business to make money because you had found a way to satisfy a need with a product or service in the market place. You’re an expert in your field. In most cases, you’re not an expert in your businesses finances. Are you doing your own bookkeeping & accounting? As an entrepreneur, the answer is probably yes. Small business owners tend to take on all the hats in their business. When I made the decision to go into business for myself, I thought I could do everything. If you have read my blog before, you know that I tried out web design early on in my business. Let’s just say that disaster resulted in two hours of my life I will never get back. Some things are best left to the experts. Lesson learned.
When it comes to your businesses finances, what is the cost of handling your own finances? The cost could be devastating. Wrong financial moves could set your business back significantly or much worse, sink it. Owners are preoccupied with getting the next shipment out or hiring the right staff. When you’re in the thick of your business day to day, are you really paying attention to the financial information? This is where the opportunity lies to strengthen the relationship with your accountant beyond the annual tax season visit. Accountants can take the financial information & translate it into an understandable language that will help business owners make better decisions. Here are a few ways to capitalize on the relationship with your accountant.
Finding New Growth Opportunities
The accountant relationship is not the typical vendor – customer relationship. Accountants are trusted advisors & partners for your business & not just your ‘tax guy’. Once you see that your relationship with your accountant is not the same as the copier guy, owners can make the most of that relationship. With the use of cloud accounting tools providing real time data, accountants can gain an understanding on a continuous real-time basis. Quarterly reviews can provide business owners with unbiased understanding into their businesses revenue plans, budgeting & cash flow. Offering insight into potential areas of growth.
It’s All About the Plan
There are times in business when operating off the seat of your pants works, but it’s not a long term strategic plan. You may have a vision for your business & your accountant can help you convert that vision into an actionable plan. With a well thought out business plan, it can be determined if objectives are being met & revised where necessary. Contingency plans can be developed & actioned in difficult times. Working with your accountant as a strategic partner can improve your chances of making it through a challenging time.
Where Did All My Cash Go?
Funding the next payroll is the number one fear of most businesses owners. Cash is constantly cycling in & out making it difficult to determine what may be draining the businesses resources. Businesses don’t fail just because they were unable to generate revenue. Cash flow management is key to the success & growth of a business. Poor cash management is the leading factor of failure in a business. An accountant’s review & advise on process revisions surrounding cash collection can improve cash flow & profitability & everyone starts a business to make money.
Bookkeeping & finance are like the boogie man of business. Everyone is afraid of it, but in the end to be successful, the financials of your business need to be embraced. Operating & running a business isn’t easy. Like many other things in life…it takes a village. Business owners can’t do it alone. Accountants can provide more than a tax return in April. Accountants are a year-round trusted business advisor & partner. They can help business owners understand growth opportunities, develop a plan & find where the cash is going.
If your accountant doesn’t offer planning & advisory services we can help. You don’t even need to be in the same part of the US… we can work with you from anywhere. With real-time cloud accounting access, your accountant & trusted business advisor located anywhere in the world can help you operate, understand & grow your business rather than just adding up the numbers.