It’s not uncommon for business owners to wait for a surge in their business before considering the need for a small business accountant. The result is a lot like waiting until you actually hear the roar of a mountain lion before you react — it’s probably too late. As a business owner, it’s important to recognize early on that you can’t do it all. Realizing quickly why having a small business accountant on your team could be critical to your success.
Make Better Decisions
Whether you are just starting out or trying to get to the next level, you’ll reach a number of critical junctures that require sound business decisions. In many cases, this could require the perspective of an accounting professional who knows you, your business, what you are trying to accomplish, and the lay of the land.
As a startup, you need to decide the best ownership structure for your business. At some point, you will need to decide on an accounting system to use in your business. When your business is growing quickly, it’s smart to have the insight of someone who understands financial forecasting for determining best course of action.
Stay Out of Trouble
Most small business owners are not prepared for the layers of compliance imposed upon them by the government. Whether it’s payroll and employee compensation, accounting procedures or business taxation, there are tons of governmental regulations that affect everything you do. A small business accountant can keep you from making costly mistakes. With an accountant monitoring your financial reports, you can more quickly recognize potential problems and can count on recommendations for the right course of action.
Get More Cash Flow Working in the Business
After recommending a suitable accounting system for your business, an accountant can work with your bookkeeping staff to establish effective and efficient cash management procedures. An accountant can also help you set up a billing system to accelerate receivables and time payables to maximize your cash on hand. Finally, they can help you find ways to make your cash on hand work harder in your business.
Prepare to Raise Capital
To get to the next level, most businesses require a capital infusion of some sort. Whether you seek investment capital or financing, an accountant is essential for preparing you to raise capital. An accountant is best positioned to help you prepare your business plan, perform the financial analysis, and advise you on the right type of financing to seek.
Focus on Your Vision
Many small business owners spend so much time working in their business, that they have very little time to work on their business. The financial management of a business can be time consuming. While it’s necessary, it does little in the way of advancing the overall strategy of your business. Having an accountant on your team can give you back valuable time to work on growing your business.