An Accounting Pro Can Make All the Difference in Your Business Success
It’s true, a professional accountant can provide powerful tax strategies with limited tax obigation, which results in saving money for your small business. One of the most positive qualities that many small business owners share is a burning desire – an insatiable willingness – to “do it all.” It’s what separates entrepreneurs from employees in the first place. An employee is more than willing to set out on the path that someone else has carved for them. An entrepreneur has a need to carve a path for themselves.
Unfortunately, this mentality can also get even the most passionate small business owners into a bit of trouble – particularly when it comes to their finances. Being able to balance your own checkbook and running the finances of a small business are NOT the same thing, nor should they ever be treated as such. To that end, the importance of finding the right accounting professional to help support your small business as it continues to grow and evolve cannot be overstated enough. The right financial professional direct as to how to reach your goals and establish success for your business.
Small Business Start Ups
When you are starting out, you need solid fiscal advice and guidance. Perhaps the most important role that an accounting pro will play in terms of your small business takes place when you’re just starting out. The early days in your business requires direction how to set up your small business entity and an understanding of your financial statements.
Small Business Entity
One of the most common mistakes that many business owners make involves selecting the wrong business entity – a small problem that can have major ramifications when tax season rolls around. An accounting pro who is intimately involved with the makeup of your business from a basic level can help make sure this you avoid this.
Do You Have the Right Accounting System?
Along the same lines, an accounting professional can also help make sure that your accounting system is properly set up in the first place. They can make sure that you’re picking the right accounting system that actually supports your long-term goals for your business and can create a chart of accounts to offer superior visibility into money coming into and out of your organization.
Another one of the hugely invaluable ways that an accounting expert can help your small business comes by the small, yet critical, decisions they make on a daily basis. A financial expert can help give you greater visibility into cash flow (including accounts payable and accounts receivable), for example. Cash flow and other instability issues are one of the major reasons why most small businesses fail in the first place, and having the right person at your side can help you avoid them altogether.
An accounting professional can also help make sure your security controls are properly set up and executed, particularly in terms of factors like compliance. Remember that we’re living in an era where the average cost of a data breach has ballooned to almost $4 million. If the security aspect of your finances is not properly accounted for, it could be putting your entire business at risk. Even one small data breach could expose the personal records of multiple clients, something that opens the door to things like lawsuits, and that could eventually close the door on everything you’ve worked so hard to build.
Other Benefits an Accounting Pro Can Offer You
A financial professional will also play an important role when it comes to growing your small business. Remember two things. Small businesses fail because of two things: An inability to scale up as fast as you need AND growing your business faster than you can sustain it. Why? A large part of your growth and expansion pace has to do with personal finances. It is a good idea to bring someone into your business community who can leverage their years of experience to your advantage.
An accounting expert can help you raise money – particularly helpful if you’re getting ready to bring a new product or service to market. If you ever decide that this chapter of your life is closed and that it’s time to look for new opportunities, these professionals can also help sell your small business as well. Selling a business is a process filled with potential mistakes just waiting to happen, and the expert hand of someone who has been in this position before is something that you literally cannot put a price on. It isn’t just an investment in your organizational ability – it’s an investment in the future of your business as a whole.
The Bottom Line, In the End
The fact of the matter is that there really is no “one size fits all” approach to small business accounting. Every business is a little bit different, which will require a certain level of care and finesse when it comes to finances in particular. Only by consulting the help of a professional as early on in the process as possible will you be able to avoid the normal pitfalls of running a small business and create a financially stable foundation from which to work.
If you are considering starting a new business, it may be appropriate to consult with this office before you get too far through the process. Please feel free to contact Alex Franch, BS EA at 781.849.7200 or email us at firstname.lastname@example.org.
Sources and Resources
- Top 4 Accounting Mistakes Small Businesses Make
- 5 Accounting Tips That Will Make Managing Your Small Business a Breeze
- Growing Pains, Growing Business in Massachusetts
- Start-Up Costs for a New Business
- Incorporating a New Business