Small businesses which are eager to build momentum and secure significant growth may strike out on a number of paths to achieve this. One option is to get an accountant onboard and try to leverage their financial prowess to eradicate inefficiencies, cut costs and keep cash flowing so that these ambitions of expansion can be realized.
Of course, the question of whether or not an accountant is actually an advantage is up for debate. So does it make sense to embrace outside help with small business finance, or is this an unnecessary expense?
Breaking Bad Habits
Unless you have a strong background in finance, it can be challenging to balance the books in a small business context. It’s also likely that you might make mistakes which lead to unforeseen issues further down the line.
With the help of an accountant, you can banish bad habits and move forwards with expert advice and guidance on a range of relevant topics. That way you will not fall foul of the IRS’ business tax rules or make other potentially costly errors that could easily be avoided.
Unless you get lucky, growing your business will invariably involve raising some money to catalyze change and push new projects forward. Generating external funding can be less challenging if you have an accountant to make your operation more marketable as an investment prospect.
If you want to procure funding privately or pry a business loan from a bank, then an accountant can help come up with the forecasts for cash flow and revenues that you need to prove the viability of your plans. Furthermore, an accountant can fill out any applications and explain how to navigate the fundraising process with a higher chance of success.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
When you factor in the average salary of a certified public accountant, this outlay will be eclipsed many times over by the amount of investment a highly trained numbers wiz could help you secure.
Addressing Payroll Problems
A growing business, even a small one, will probably be looking to add new members of staff to its roster. As a result, it will also need to face up to a more complex payroll management process, which could spiral out of control if left unchecked and potentially lead to having to make some difficult decisions between cash flow and late payment of employees. Finding talent is tough enough at the moment; you need to avoid these mistakes to keep workers loyal.
Rather than gamble with this incredibly important issue, it makes sense to let an accountant take the reins and oversee the evolution of your firm’s payroll infrastructure. Even if they only do so in an advisory capacity, they should be able to nip problems in the bud and notice discrepancies sooner rather than later, ensuring they do not blow up in your face in the future.
We have briefly touched on the taxation-related benefits of having an accountant for your small business, but aside from indicating the areas in which you may be making mistakes, a qualified professional can also sort out all of your end-of-year reporting and aid with lots more besides.
From completing the arcane tax forms you need to submit to projecting the payments you can expect to face each quarter, there are a lot of tricky tasks that can be simplified if you have a specialist on your side. As with payroll management, when your small business grows, your tax affairs will increase in complexity and it makes sense to do all that you can to minimize this burden.
It may seem like a pipe dream for a small business, but if you do manage to turn your dreams of expansion into a reality, you may eventually decide that it is sensible to acquire your rivals and eliminate the competition or accept a buyout offer from a much larger organization.
Whether you are deliberating an acquisition or making moves towards a merger, an accountant will clearly have a central part to play in facilitating the smooth implementation of any deal of this kind. There are also complex legal ramifications relating to mergers and acquisitions, so it is vital to make sure that your finances are in order and iron out any kinks with an accountant’s assistance to avoid regulatory mishaps.
Setting Realistic Goals
A sense of perspective is perhaps the most important and impactful thing that an accountant can provide to a small business. Yearning for growth and imagining a rose-tinted future is obviously good for morale, but you have to be realistic and grounded if you want to avoid overreaching.
Accountants will help you schedule milestones that you have the ability to hit, as well as providing you with the tools and techniques you need to monitor and assess performance over time to see where improvements could be made.
In short, accountants can both help a small business grow, while also ensuring that they do not take any unnecessary steps backward.