How accounting can empower small business
Accountants sometimes get a bad rap. The worst stereotypes are that they pinch pennies, only report financial matters after they've happened, or only exist to file taxes, which is necessary but never fun. But they can provide accounting services that do so much more for small businesses.
A good (or great) accountant goes beyond handling the necessary financial basics for you to run your company. They can actually empower your small business in these ways, providing:
Access to valuable information
Accounting reports don't just tell you how much money you've made. The right reports can tell the story of what's happening in your business and what you need to move your business forward. A good accountant can help you understand how well you're operating-with actual numbers.
Well-organized information
If you don't understand your accounting, your information may not be organized based on your specific situation. A good accountant will develop a structure and customize your reporting to your unique business and information needs, which they can only do by taking the time to understand your business operations and growth goals. With a thoughtful information and reporting structure, you're all set with a foundation to make well-informed decisions.
Business planning and forecasting
Small business owners must make a lot of decisions about their operations, especially in growth mode. To make the best decisions, you should plan and forecast well in advance. If your accountant knows your business well, they can help you develop analyses such as a break-even analysis for sales targets or capacity and profit forecasts for planning staffing growth or major purchases.
Cash flow management
Of utmost importance, your accountant can help you analyze and forecast your cash flow. Understanding your sources and uses of cash in the short-term and long-term is critical for business success. Even profitable companies can fail if they can't properly manage their cash.
Tax planning
A good accountant will work all year long to ensure you're well prepared for your tax filing. They'll most likely leave the actual filing to a tax preparer or CPA who specializes in tax, but maintain a clean, up-to-date set-up of your books to make a big difference in both your tax bill and how much your preparer charges you.
Easy transaction processing
Invoicing clients and processing payments are pretty basic functions for your accountant. With easy (vs. cumbersome or difficult) accounting processes, you'll provide a better experience for your customers, vendors, and staff.
If you just see accounting as a "required function" for your business, you're probably missing out on a lot of opportunity to ally with a strong partner to achieve business success. With an accountant who knows your business and your vision for its future, you'll be able to use that information and insight to power your business forward. And knowing where your cash and profits stand at all times can be a big stress relief for owners.
At Syzygy, we love to partner with our small business clients to help them truly understand how their business is working. We find that when they spend the time to understand their numbers, they much more confidently make decisions about their future. Find yourself a great accountant who can help you grow-just reach out!