Most small business owners only think of their accounting issues around tax time. However, there are many critical reasons why you need an accounting service working for you all twelve months of the year.
Stay focused on your core business
As your business grows, even the smallest of tasks takes you away from more critical endeavors. Every check you write to pay an invoice, every call you make to collect a receivable from a customer, every run to the bank to make a deposit is a distraction from pursuing even more customers or following through on the ideas you have for new products and services you could offer. It is much more beneficial long term to let someone else take care of those everyday tasks, and ensure that all the activity is recorded promptly and properly.
Budgeting, planning & cash flow management
Accounting tasks include more than taxes and writing or depositing checks. As your business grows, you will realize that planning ahead is the key to avoid potentially critical problems. Let’s say your sales rep is closing in on a deal to secure a customer that would result in a 45% increase in sales. That means you also have to produce at an accelerated rate and fast. Will you have the cash flow to support the necessary increase in up-front costs? Should you hire a new employee? Part time or full time? Will this mean new equipment is needed? These are all questions you should not have to tackle by yourself. An accounting service will help you develop a strategic plan as well as a cash flow projection based on your company’s direction.
Suppose that new customer you landed means you do have to ramp up spending to a level that will tap too deeply into your cash reserves for your comfort level. In that case, it might be a good idea to secure a small business loan to fund the increased production initially. When you have a full time accounting service in place, your financial reports will be clean, up to date and accurate which means you will be showing a potential lender that you are not a high risk applicant. When you are prepared and organized, banks will not only lend money more easily, but you will also secure a lower rate of interest on the loan.
Roberts Tax Advisory provides a full range of accounting services including a financial management system that is accessible anywhere, anytime and has the flexibility to meet the needs of any type of business. Contact us today for more information.