Accountants are often an afterthought until tax season comes around. However, they can do so much more than file your taxes. Many businesses will wait until they meet with an accountant. Often they feel they are too small to need an accountant. However, they can play a pivotal role in helping drive the growth and success of your business from early on.
There is the adage, numbers tell a story and there is truth to that. An accountant can analyze company data and can help with a wide range of business decisions.
When you are a small business, you may not always have the resources to hire staff to consider these areas. This is where an accountant can step in.
Some ways that you can best put your accountant to use are:
- Stay on top of day to day business – Having clean bookkeeping records leads to quality decision making. It allows for better cash management as well as a clearer picture of expenses and income. Staying on top of this can be difficult for small businesses as they are more focused on day to day operations. An accountant can help take over this function. With cloud based accounting software it is now even easier to share data between you and your accountant.
- Delving deeper into the numbers – Want to determine why certain products aren’t adding to your bottom line? Or why you always seem to take a loss when dealing with certain customers? An accountant can help with his by digging into the data and determining where the issues are. One company we recently worked with was surprised to find that one of their most loyal customers was also one of their least profitable. The reason for this was that an excessive amount of time was being put into the job from staff. It was only once the data was analyzed that this was found out.
- Writing a business plan – An accountant can help provide financial projections and a second set of eyes to ensure the plan is realistic and logical.
- Business advice – Accountants who work with small companies also tend to have a deep understanding of everything from pricing strategies to cost controls. Result: If you’re facing a business challenge, make sure to bring it up and ask for your accountant’s input.
- Leveraging their networks – Good accountants are connected to a network of lawyers, bankers and other professionals who might be helpful to you. Also, they probably have clients in a variety of other fields, people you might want to get to know. Don’t be afraid to ask if they know anyone that could help you and your business.
The above is not an exhaustive list but it shows that an accountant can go beyond being the person who just files your taxes.
Contact me at Iqbalshanghera@tsascpa.com for a free consultation and figure out how I can best help your business grow.