Why You Need a CPA as Your Primary Business Advisor: How a Certified Accountant Can Help Grow Your Business
An important part of growing your business involves getting the right professionals to help you. And that’s where advisors come in.
While it may not be top-of-mind to have your accountant serve as your primary business advisor, you might want to reconsider.
A certified accountant can do much more than file your taxes and handle the payroll. There is a broad range of business issues that your CPA can provide solutions for, which can make him or her an excellent addition to your team of advisors.
Here are some of the ways a CPA can help you steer your business towards growth.
Help With Business Planning
A CPA can guide you through some of the major milestones of your business or company.
You can bank on your accountant to come up with a detailed business plan that can help you expand your operations or attract new investors, for example.
An accountant can also help you avoid common pitfalls, as well as guide you on the preparation of realistic revenue and expense projections.
Advice on Compliance
Navigating financial regulations can be tough, especially if you have no accounting background.
A CPA, on the other hand, will be familiar with the financial regulations, which can vary greatly depending on the jurisdiction.
A competent CPA will also have a deep understanding of your industry and help you to integrate the best accounting practices to your company.
Only a seasoned professional such as a CPA can help you identify the kinds of expenses you can write off on your taxes.
As such, your accountant can advise you on how to stay in compliance with all government and tax regulations.
Help You Control Your Income and Expenses
An accountant can help you monitor your business progress by providing all sorts of valuable metrics such as the estimated return on investment (ROI) you’re getting from marketing expenses and the ratio of revenue to salaries and other costs.
Such parameters can help you to discuss ways to increase revenue, cut costs and improve the overall bottom line of the company.
Giving A Professional Financial Perspective
Your CPA’s knowledge of financial reporting standards and accounting best practices gives them an advantage in asking pertinent questions to top management.
They can also highlight crucial details that are significant to senior managers and financial stakeholders.
If you have investors on board, for example, your accountant can prepare detailed reports on the business progress and profitability.
Such information can be eye-opening as well as informative to investors and other stakeholders.
Quality Training and Documentation
If you’re running a startup, hiring an accountant to coach you on how to manage your finances and do some bookkeeping can make a world of difference and set you on the path to success.
Nonetheless, any company, whether large or small can benefit from the accounting knowledge of a CPA.
That means a CPA can produce training documentation and systems to improve your in-house finance department.
This transfer of knowledge and continuity to your financial personnel can go a long way in closing the skills gap and setting the foundation for an efficient financial management system.
Cost Benefit Analysis
Your knowledgeable CPA can perform regular financial and economic evaluations to determine what works and what doesn’t.
For instance, you just implemented a new inventory ordering system.
Over time, your CPA can analyze the financial implications of your changes and give recommendations on how to improve the system’s performance if necessary.
Essentially, your CPA can help you to increase revenues, implement best practices for money management, lower costs and handle financial aspects of your business that you may not realize or anticipate.
CPAs Make the Best Business Advisors
If you’re a business owner or executive looking to engage a business advisor, you are well advised to choose a financial consultant who is also a CPA.
CPAs can use their experience with a variety of technical accounting issues and specific reporting and regulatory requirements to provide solutions for whatever situation you or your business is facing.
CPAs can see the story behind the numbers and use their broad industry knowledge and business process experience to determine strategies to help owners and executives achieve their goals.
If you are looking for a business advisor who can help your business succeed, please feel free to reach out to our team at Beckley & Associates.