Owning a business can be an extremely gratifying and wholly frustrating experience, all at once. While the rewards may be great, the financial, emotional and time demands can be draining. When you own a small business, it is important to turn to experts to help with some of the more challenging elements. In fact, your accountant can play a very significant role in helping you drive to success. Here are some of the ways in which your accountant can serve as a valuable member of your team.
When you launch your business, your accountant can help in critical ways. You’ll need to determine the business structure, write up a business plan, open a business bank account and make sure you are compliant with government regulations.
These tasks can overwhelm even the most savvy and experienced business owner, but with the assistance of an experienced accountant, it will be smooth sailing.
Even once your business has settled, you can leverage your relationship with your accountant to grow your business. In particular, you may want to turn to your accountant to help:
- Review your financial practices to identify gaps and opportunities. For instance, an accountant can offer insight related to cash flow patterns and inventory management and provide much needed advice to course correct.
- Understand the implications of and prepare for the possibility of an audit. An accountant will ensure that your financial statements are in order and that you are in compliance with government expectations. In the event that you are audited, and accountant can guide you through that process.
- Forecast future needs, expenses and growth so that you can make decisions that will allow you to achieve your goals.
It is wise to check in with your accountant on a regular basis, even when it feels as though your business is humming. Sometimes, you need input from an experienced outsider who can confirm that there is nothing alarming going on that you may have overlooked.
When your business closes
When it comes time to close or sell your business, you will absolutely need input and feedback from an accountant who you trust. You will need to determine your business’s value and if, in fact, you are ready to start looking for a buyer. Usually, a prospective buyer will expect to see at least two to three years’ worth of tax returns, and you will be in a much better position if you can represent that your business is viable. An accountant can help ensure that you put your best foot forward during what can be a very painstaking and challenging process.
While small businesses can often operate leanly, and with few internal resources, the benefits reaped from a skilled and committed accountant can go a very long way. If you own a small business and you would like input from an accountant, feel free to reach out to Miller Bernstein for your free consultation.