If you are trying to grow your business here in Pennsylvania, your accountant is an invaluable partner. Your experienced, licensed accountant or CPA can assist in a multitude of ways, all of which will put your company on sound financial footing to grow successfully into the future.
Obviously, your accountant has the expertise to manage your finances to maximize your net profit. Your accountant will recommend policies and procedures to ensure that all income and expenses are properly recorded. This can be one of the biggest problems for small, growing businesses, especially if you have not yet leveraged the latest technology options to help you track your invoices and sales, inventory, and accounts payable. Smartphone apps and cloud-based programs can prevent you from leaving money on the table.
Your accountant can help you with loan management, debt collection, cash flow management, tax planning, and cost reduction strategies. Your accountant will also be monitoring updates in tax laws and industry regulations to ensure that you maintain compliance, avoiding any penalties or legal action.
Your accountant is in a position to help you develop successful strategies for short-, medium-, and long-term planning and growth with a wide range of analytics, such as:
- Determination of key performance indicators (KPIs) for your business
- Comparison of your numbers to industry benchmarks
- Help understanding cash flow projections
- Analysis of existing and potential competition
- Market analysis
- Product or service price analysis
- Analysis of customer base, ideal customer profile, and customer reviews
- Testing growth options with break-even analysis
A deep dive into the data can help you develop future-facing strategies for long-term success.
Planning for the future
Strategic planning is critical for long-term success, and your accountant is a key player in helping you with this detailed process. With the detailed financials your accountant has generated and the thorough analysis of your company, the market, the competition, and your present and potential products and services, you can begin to develop a plan for growth.
An accountant is an ideal person to include on an advisory board. Your advisory board may consist of experts in various fields, depending on your needs: legal, financial, technology, logistics, marketing, your industry niche, etc. The board advises you on growing and scaling the company, making major transitions or expanding into new markets, and other strategic and technical advice.
Your accountant can act as the financial expert, helping you with financial forecasting, which is necessary if you intend to seek funding, and helping you secure loans. Your accountant may advise you on changes to your business structure as your company grows, such as changing from an LLC to a C-Corporation. Finally, your accountant has contacts in a variety of industries and can act as an advocate for your products and services or direct you to any other experts you need.
Developing a strong relationship with your accountant and leveraging all of his or her knowledge and expertise will be one of the most important steps you take for your company’s success.