When small businesses start dreaming big, bringing in an expert financial hand is a step in the right direction.
Certified Public Accountants are more than just number crunchers to balance the books and help with tax preparations. They also have the analytical skills and insight to interpret what goes on behind the ledgers. Their financial wisdom could serve as a guiding light and a blueprint for how businesses may grow their enterprise.
Here are the top 9 questions to ask an accountant if you want your business to grow.
1. What strategy can make my business more profitable?
Profitability is the best indicator of how well a business is performing. An accountant will remind you of the other forces that drive profitability:
- Embarking on a more focused marketing strategy
- Improving distribution channels
- Employing more cost-efficient production methods
They can help you identify the most effective strategy for your business.
2. Which is the best mode to fund growth and development?
Expanding your business means a significant increase in expenditures. With limited cash, companies have two options to finance growth: debt or equity financing.
Debt financing means taking loans from banks and repaying the principal with interest. On the other hand, equity financing means giving up a percentage of ownership to parties willing to invest in your business.
A good accountant considers everything to ascertain whether giving up some control is better than loan payments and vice versa.
3. How can my business have a better cash flow situation?
Companies going through rapid growth may experience an increase in accounts receivable. An accountant may remind and help develop systems to manage collections efficiently. Such preparation is necessary to ensure cash flow is not adversely impacted.
4. Which business structure is the most suited for my business to attain growth?
Your current business structure may need to improve your business growth. The system that was good when you started might not be the best way forward.
Sole Proprietorship, Limited Liability Company, or Small Business Corporation – your accountant’s insights will help you determine which structure best suits your growing business.
5. What types of systems and personnel can support growth?
There may need to be more than the workforce and systems employed during launch to propel your business to the next level.
A good accountant will have a good understanding of your operations and your personnel. For example, he/she can provide insight into whether your business needs to hire full-time or part-time employees or whether automation is the best way forward.
6. What preparations do I need to make for Tax Season?
A growing business will need a more systematic way of filing taxes. An accountant’s grasp of which business expenses qualify for tax deductions and which documents are necessary for your tax preparations will come in handy come tax season.
7. In times of growth, which aspect of my business should I prioritize?
A growing business presses the owner to deal with many things simultaneously.
With so many concerns to address, it is easy for a business owner to get lost in the shuffle. A good accountant may help the entrepreneur to identify in what capacity he/she can serve his business the most.
8. How will growth affect my overhead costs?
In theory, overhead costs, by their very nature, are fixed. In reality and accounting practice, they are not – more so in the case of small businesses experiencing growth.
An accountant’s expertise will determine and ensure that all fixed, variable, and semi-variable costs are correctly assessed as part of a long-term growth strategy.
9. How do I manage the change that comes with growth?
The biggest challenge of business growth is how well the enterprise adapts to it to make it sustainable. With change comes inevitable growing pains. Development is inherently good, but it may also disrupt efficient operations. A good accountant’s financial acumen and business insight may help you manage your enterprise’s growth.
For any growing business, there will always be challenges to overcome. Companies should be able to identify and address the financial blockades and bottlenecks that may hamper sustainable growth.
Let CRI Payroll Services help you. CRI Payroll Services is ready to assist you and your company. We will provide your business with excellent bookkeeping and payroll services and work with your accountant to tell you the story behind the numbers.
For CRI Payroll Services, your growth is our success. Serving clients nationwide.