Every business needs a good set of books, properly maintained, in order to meet the various tax obligations throughout the year. However, as a business grows from one person with an idea to a team of experienced players, it helps to get as much support as possible from your accounting procedures for every aspect of your business. It’s not just for taxes, after all.
Research and development
Do you have a favorite client or type of client that you want to attract to your business? What does that client require, and can you meet those requirements? A good accounting firm can give you a snapshot of your business each month so that you know which clients are making money for you, and which clients are taking more time than they are paying you for. This type of analysis is more than numbers, it is a forecasting tool for your future. Such reviews can point you toward proper investments ranging from equipment, hiring standards, advertising strategies, and other business elements.
Training on software
Does your accounting firm offer a working understanding of your current sales software? A good accounting firm should have a firm grasp of how to manipulate the recording of your transactions so that your sales employees and technicians don’t need a degree in accounting just to close out their day.
Any good system that gives you key insights must offer detail, but software can sort that detail if the system is set up properly for your business. A firm that is serious about giving you powerful tools for guiding your business decisions will take the time necessary to set your business up properly on a system that is user-friendly while remaining detail-oriented. This requires a combination of expertise in accounting principles (an overall view) as well as bookkeeping skills (transaction-based detail).
Sharing your focus with your team
Look at the way these areas of your business are affected by expenditures.
What are the bottlenecks in your business, and how do you eliminate them? This type of expenditure often takes sweat and tears as well as money, but it is important that your chart of accounts includes coaching, not only for your employees but for yourself in order to remind everyone of what your business means to accomplish, and how to get there.
Tax strategies and how they affect the organization of your business
While taxes are of vital concern, a good accountant will not assume that you should base your business decisions on the tax consequences. A good accountant will give you the best tax advice based on your business plan, not give you business advice based on paying lower taxes.
Most small businesses are looking for an economical answer to their bookkeeping and accounting problems. Be careful not to minimize the value of a good accounting service. If you find a firm that offers senior tax advice, business accounting knowledge, and bookkeeping skills, all of which have been tried and tested through state and federal audits over the years, then understand what you will be paying for.
Essential points to ponder
- Are you spending money that you do not have? A good accountant can spot this before it is a debilitating issue.
- Are you currently using the correct entity? Maybe you should be a “C” corporation instead of a Sole Proprietor. If you are going to make an entity change, what is the proper timing, and what options are you giving up? What is the meaning and benefit of being an LLC?
- Are you aware of the opportunities in the new tax code, or is the person that “does your books” too busy with inventory to go through all the options? The tax code is geared to simplify taxes for the individual, and to encourage business activity on every level, big and small, in the hope that you will hire skilled workers.
When you find a good accounting firm, be prepared for an initial setup fee and a monthly charge that justifies the standards used to maintain its personnel. There is a lot to know about business, taxes, and point-of-sale technology that can bring your company to a higher level. Big companies hire specialists in these areas. Base your fee expectations on the expertise that is available to you with a well-staffed accounting firm.
Call us for an interview regarding your business and its inherent worth. Find a package that suits your stage of growth and reach for a better understanding of your potential.