When most people think of accounting, they think about daily tasks like accounts receivable and payables. They might also consider things like like tax filings and bank reconciliations. However, working with an accountant can also help business owners plan for and achieve future growth. Here are some of the different ways your accountant can help you ensure a prosperous future.
Budget Forecasting and Reporting
With your accountant, set some goals for the next year. Your accountant can then use charts, graphs, and different data to track your progress and compare past and current periods. You’ll need to determine how costs compare with sales volume, and what future events (a change in season or market conditions, for example) are likely to impact those numbers. All of this information will help drive sound decision-making, ensuring you make the right decisions at the right time.
Key Performance Indicators
Your accountant can help you determine what key performance indicators (KPIs) your business should be looking at. Some of these might be inventory turnover, cost per customer acquisition, market share, revenue growth, profit margins, or any number of things. Using these KPIs, your accountant can help you measure and estimate your business’ performance over time.
Cash Flow Projections
Understanding your KPIs is also vital to planning and managing cash flow. Will you have the means to buy new equipment, provide employee perks, or extend discounts to your best clients? Everything from hiring employees, to developing new products, to changing locations will also impact your cash flow. Let your accountant keep track of it all and give you the results of that analysis — before you make important decisions.
In order to get financing or bring investors onboard, you’ll need to have an accurate picture of your business valuation. Only an experienced financial pro can help you valuate your business properly, and provide the documentation to back up those numbers. Business moves fast, and opportunities can pass you by if you don’t have a constant, accurate picture of how much your business is worth.
Every business decision you make has the potential to impact your tax liability. Your accountant will have a constant pulse on tax codes, both federal and local. Since you’re busy running your business, there is no need to stress yourself out trying to keep up with the frequent changes in tax codes and regulations. He or she can inform you how each business decision will affect how much you’ll owe the government — and that knowledge is important to your future growth.
As your business grows, you’ll likely need to change the way it’s structured. This is helpful in mitigating your personal liability and reducing your tax bill. Only a qualified accountant or attorney can help you ensure the proper business structure.
Don’t Risk It
The future of your business hangs in the balance of every decision you make. An accountant can provide you with much more than daily financial help. He or she can be an invaluable partner in planning for the growth and expansion of your business. When your future is at stake, you have every reason to bring an accountant on board to help you plan for success.