Top 5 pieces of advice an accounting expert can provide
There’s never enough time! Ever feel like you’re drowning in a sea of deadlines? Starting a small business is exciting, but the to-do list is endless and the day to day challenges can be nerve wracking! It’s typical to wish there were more hours in a day to get everything done. You need time to work on the day to day operations – and time to handle the financial aspects as well. But when it comes to pursuing a business, there are certain services an accounting expert provides that you should not do on your own.
Accountants are not just number guys. Well – they are kinda nerdy that way – but they do provide more than just the filing of tax returns. I’ve listed 5 critical pieces of advice which an accounting expert can provide to help guide your decisions as your business grows and expands.
- Financial Statement Preparation.
While an accounting software is designed to make accounting more accessible, the independent and practiced hand of an accounting practitioner can properly prepare financials that will satisfy a bank or other interested stakeholder. If your lender comes back with lots of questions, that would be a sign you need help of an accounting practitioner for sure. In fact, the wise business owner should know that the very fact someone asks for financial statements in the first place is a sign you need the help of an accounting practitioner.
- Tax Planning.
If you often lie awake late at night wondering what will happen when tax return submission date rolls around, you may be sure that is a sign you need the help of an accounting practitioner. The time to consult with your accounting practitioner is not in the return submission month, but rather all year long. A good accounting practitioner will ask questions, provide answers and analysis regularly.
- Tax and Information Return Preparation.
If you are starting to think about your business tax return, you are running into a sign that it is most definitely time to contact your accounting practitioner. Because your accounting practitioner is thoroughly trained in the Tax laws and rules, and has kept current with all the changes in the tax rules, they will know to look for small and large deductions, exemptions and compliance requirements. While they are already looking carefully at all the elements of your financial position and results of operations, they can ask questions of you that you might not have considered, while offering suggestions on what could lower your tax expense, while still remaining in compliance.
- Budget Projections and Analysis.
If your sales are going up, but your bottom line is not keeping pace, you are running into a clear sign that it is time to consult with your accounting practitioner. One of the best ways to assess your business is by setting a realistic budget and comparing actual results to projections. If there is a large discrepancy, you can rest assured you are missing out on opportunities to keep costs low and thus improve profitability and operational efficiency.
- Accounting Analysis Leading to Strategic Decision-Making.
Accounting practitioners like to say that “numbers tell a story.” If you are considering laying-off staff, hiring more staff, purchasing a business or selling off a part of your existing business are all considerations that point to a need to consult with your accounting practitioner. No one likes to lay off staff and such a drastic step may not be necessary. Hiring staff prematurely may turn out to be a quick solution to what is only a temporary problem. Preparing a cost analysis on an under-preforming division, or performing due diligence on a potential acquisition are simple ways of helping you to make more informed decisions. These are all tools your accounting practitioner has readily available to help you make the best, most informed decisions possible.
It feels good to know you have someone you can trust for solid financial advice.
If you need an accounting practitioner to help you through any of these steps, my colleagues and I are happy to assist you with your business needs. Please contact us at info@awaisfawadandassociates.com
