As a small business owner, you are probably not an expert on accounting issues. Although you may use an accountant for the basics, you may not know that a good accountant can do much more than keep your books and file your taxes. Here are seven ways an accountant can help with your business growth.
1. Tax Planning
Expert tax planning advice can help you understand your tax options. An accountant can teach you the best times (or not) to conduct business transactions to reduce your taxable income, decrease your tax rate, and even eliminate some taxes.
2. Business Structure
Over 70% of U.S. small businesses operate as sole proprietorships. However, if you are a sole proprietor, you have no personal protection from any losses, liabilities, or debts incurred by your business. An accountant can advise you on which structure is the right one for now and when business growth takes off.
3. Payroll Compliance
Noncompliance with government regulations relating to payroll taxes could mean a costly fine. An accountant can ensure that you are in compliance and take care of burdensome government paperwork and insurance requirements.
4. Cash Flow
Your cash flow can fluctuate widely. Late paying customers, unexpected expenses, and poor cash management can all wreak havoc. An accountant can examine the cash flow trends pertaining to your business, help predict when a crisis is looming, and advise you on mitigating the problem.
5. Managing Debt
An accountant can help you see the difference between good debt and bad debt. They can work out effective financing and repayment strategies to help you with toxic debt that is stifling business growth.
6. Sound Budgeting
Is your budgeting process a hit and miss exercise? An accountant can help you get past estimates and assumptions. They can provide you with a solid base of accurate numbers and help you eliminate unnecessary costs.
7. Business Growth
An accountant knows how to look at the big picture and advise you on which new hires are necessary and affordable. They can also pull your financial information together to apply for a loan to support business growth.
Get the Best Accounting Advice
Mathews CPA offers a suite of comprehensive accounting services. We can handle all your small business accounting to ensure maximum business growth and profitability. Contact us today and tell us about your small business.