When most business owners think of their CPA, they think of the person who files their taxes and, in some cases, handles their accounting. But if those are the only two functions your CPA is providing for you, it may be time for a change. The greatest advantage of ongoing conversations with an accountant for any business leader is their ability to help you scale your business more efficiently. Here are 5 ways the right CPA can be of great value to your business growth.
Prevent overpaying next year’s taxes
Did you just get hit by a big tax bill that you were not expecting? If so, you may want to ask your accountant what happened. While changes to tax code can happen at any time, your accountant should have the opportunity and knowledge to adjust your financial and tax plans to avoid “unexpected” IRS bills. If you are working with a Certified Tax Planner, “unexpected” should not even be in your accounting vocabulary.
Help determine the best areas for growth
By providing insight on cash flow patterns, inventory management, pricing and business financing, an accountant can help you make every dollar you earn work as hard as it can to achieve growth. Everyone will tell you that you need to “invest in your business” but only a forward-looking accountant can tell you how to do that.
Provide advice on property and equipment leases and purchases
Have you ever wondered if the timing is right for buying a property for your business or upgrading equipment? Would your company benefit from leasing arrangements as much as you may think it will? How much will the costs associated with financing impact your growth this year – or beyond? A great accountant can help you answer these questions and more.
Create a business budget that will support your business goals
Is this the year to add a new employee or start building a sales division? How about providing incentives for retention of your key staff members? Introduce a new product line? Increase prices? Is the timing right for any of these?
These are just some of the questions a qualified CPA can help you answer. In fact, a really good CPA will help you build a plan for growing your team and ensuring everything is going according to plan, or adjusting the plan to suit the circumstances. Businesses do not operate in a vacuum, and a good accountant can create financial forecasts that help you make better decisions in your business.
Provide advice, planning, and resources to assist you with the sale of your business
Maybe you’re not ready to sell your business, but if you want to maximize the amount of equity you can take out of your business when you do sell, you need to start planning early. And once the plan is created, it needs to be reviewed periodically to ensure your goals will still be achievable. Sometimes the insights needed to drive your business growth are not as intuitive or apparent as you need them to be, and the perspective of an accountant can change the trajectory of your business dramatically.
If your CPA isn’t helping you with all of the above ways to grow your business (and more), we would be happy to speak with you. Want to see a few examples of other ways we can help your business grow? Take a look at this blog on reducing expenses intelligently.