It is not unusual for a business owner to be unsure who they can trust when it comes to business advice. If an accountant’s services are only used for taxes, an important and invaluable resource is being overlooked. The services of an accountant can provide a business owner with invaluable information and knowledge about their industry as well as its key players.
An accountant, such as Brown Smith Wallace, can provide business owners with information related to how their business is doing compared to the competition. This is done by benchmarking areas such as overheads, production costs, market penetration, and sales. With this information, it is possible to uncover the changes that may need to be made to help improve overall profitability.
While taxation needs are still the bread and butter of accountant services, modern service providers have evolved into business consultants who are focused on helping business owners see more value in their services while helping them save money.
1. Bookkeeping Services
An accountant can effectively design and implement a seamless record-keeping system for any business operations. This is going to help a business owner save time and allow them to focus on building their business.
2. Management of the Business’s Cash Flow
An essential part of any business’s survival is the projection of cash flow that is going to occur in the coming 12 months. An accountant will work with a business owner to create a cash flow statement that includes the amount of money coming in and going out. At this point, it is possible to decide if the business needs to reduce costs or to increase prices for the cash flow in the business to stay positive.
3. Personal Finances
Accountants have a wide breadth of knowledge, including how to minimize taxes, business valuation matters, estate planning, and due diligence. All these are considered essential components of creating a cost-effective exit strategy for any business. Even better, an accountant can help a business owner manage their business along with their personal finances.
4. Business Planning
Having a clear business plan will help a business owner steer toward their goals and helps them secure funding. Underpinning this plan is a person’s assumptions about the world and environment around them. Accountants will help to add value by confirming or by challenging a person’s beliefs or ideas. This is going to help ensure the plan remains achievable, updated, and realistic in the eyes of a potential investor.
5. Managing Growth
Most businesses must plan for increased levels of sales. Higher expenditures due to growing staff spending, the expansion of a warehouse or office, logistics, and production must be met before the money arrives from sales. An accountant will model the costs and help a business owner evaluate any alternatives to help finance the business’s continued growth.
Hiring an accountant, outside the business, is one of the smartest things a business owner can do. They offer an array of invaluable services, including helping business owners cut spending and save money. This is invaluable when it comes to a business and ensuring it continues to grow and surges toward success rather than falling flat due to common and preventable money issues that may occur without the help or services an accountant offers.