The business world is comprised of complicated financial issues which add complexity in your life. When you navigate the field of financial decisions alone, your anxiety levels may increase while your confidence levels go down. As a business owner you realize that the services provided by your accountant are an invaluable resource for the success and continuation of your company. But are you using your accountant’s expertise at its fullest potential? Your accountant can help you address your financial challenges and provide you with a structured plan to reduce the complexities and restore your confidence about your financial future. So how can an accountant help you achieve that? The following is a list of services you should take advantage of:
- 1. Internal Controls
Implementation of solid internal controls is the best way to minimize the risk of fraud, embezzlement and other improprieties within your company. No one ever hires employees thinking that they will be dishonest; however the reality is that employee theft results in a significant amount of lost profits for companies every day. Establishing and monitoring internal controls for your company will reduce such risks and help maximize profits for your company.
- 2. Budgeting and Projections
The key to achieving the financial goals of your company is accountability. The first step is the creation of budgets and projections. The second step is to hold individuals accountable for maintaining those budgets and achieving the company’s goals. Your accountant should help you develop budgets and projections, as well as measurable goals to insure accountability.
- 3. Benchmarking and Results Analysis
You may believe your business methodology is the best. However, what if you found out that your competitors were operating with significantly higher gross profits, lower operating expenses and higher bottom lines? Most companies would immediately ask “what are we doing wrong?” General benchmarking information can be obtained via the Internet; however your accountant can be a key resource for specific benchmarks that apply to your industry segment and region.
- 4. Evaluation of Employee Benefits
You recognize that your employees are the primary reason why your company is successful. Therefore, when the company has the opportunity to financially reward its employees, create significant write-offs for tax purposes, and increase overall employee moral, then the employee benefits plan is a win-win situation. Your accountant, along with the assistance of an independent pension consultant, can help you evaluate your options.
- 5. Succession Planning
Most business owners have a good understanding of how their company operates and are confident that they will continue to be successful for as long as they are at the helm. Not all business owners have planned for the company’s continued success after they retire. Whether your intent is to pass your business down to your own children, turn over the operations to key employees or sell your business outright to a third party, you should begin planning this transition. There are many tax saving strategies that will ensure that your company continues to operate and provide for your financial security.
- 6. Tax Planning
The old adage that “people don’t plan to fail, they fail to plan” is never truer than when addressing tax planning. Tax preparation and tax planning are two distinctly different things. Too many companies do not see their accountant until after the end of their fiscal year. Tax planning after the fiscal year end is similar to putting the cart before the horse. In order to be successful, the majority of tax planning needs to be implemented over the course of the year and should be monitored regularly. There are many tax planning strategies that may take years to successfully implement.
- 7. Profitability Enhancement
There are three ways to enhance a company’s profitability: increase revenues, decrease costs, and improve the quality of life of the company owners. When people think of profitability enhancement, they automatically think of a higher bottom line, but what if your accountant came to you and said “I can show you how to increase your gross revenues and gross profit while reducing the number of hours you work?” Most people would jump at such an offer. Your accountant should ask you these types of questions and help you implement solutions.
In today’s economy every resource is an opportunity for continued growth. By not making yourself accessible to such resources you are closing the door to a multitude of opportunities. A good certified public accountant will help you identify your goals, solve your problems, and become your most trusted financial resource.