By Ben Kinsey, CPA
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| Image courtesy Max Pixel |
Every business owner is
always looking to add value to their business.
That’s why they spend so much money on everything from fancy offices to
first class business cards and brochures.
As they say, perception is reality.
While most business owners employ a CPA, what many don’t realize is that
all CPAs aren’t created equal. What I
mean by that is CPAs are like doctors in that many of them tend to
specialize. While they are all capable
of helping a business maintain and reconcile its accounts, prepare financial
statements and do basic tax prep work, some of them are more adept at helping a
business find every tax loophole, while others are better at showing clients
how to improve their processes to either save or make money. Depending on the type of business you operate
or the stage of development that your business currently is at the moment,
finding the right CPA could have a huge effect on your bottom line.
Getting Started on the Right Foot
Even startups need
accounting help. When many small
businesses begin, most of the emphasis is placed on the owners whose skills are
the backbone of the business. While most
startup owners are skilled at selling and servicing their accounts, what many
of them lack are the skills necessary to help them price their services with an
eye toward growing the business.
Moreover, since startups entail wearing a lot of different hats, the
last thing most startup owners have time for is keeping track of the
numbers. This sometimes puts them in the
unenviable position of selling their business into the ground. Even fledgling business who have the
wherewithal to invest in accounting software to record transactions and make
sure they are getting paid for their efforts on a timely manner, few of them
know how to break these numbers out into meaningful reports that can show them
whether their efforts are leading them to reward or ruin. CPAs who specialize in working with startups
can not only help a fledgling business owner make sense of the numbers they
generate, they can also help them improve profits, cut costs and foster growth.
Here We Grow Again
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| Image courtesy pixabay |
While it’s true that
two thirds of businesses fail in the first two years, what cripples a fair
portion of the remaining third are growing pains. That’s right, some businesses are actually
undermined by their own success. The
realities of scaling a business up are sometimes more daunting than getting a
business off the ground in the first place.
Everything from staffing considerations to scaling up production and
supplies can put a business on the rocks in a hurry if preparations aren’t made
in advance. Sometimes these preparations
include detailed forecasts that let the owners know in advance the steps they
need to take to keep their business going and growing. Other times, it also includes proving to a
bank that the business is credit worthy so a banker will approve a credit line
or loan that allows a business to grow.
Having the right CPA who knows how to handle a business’ growing pains
could make or break a firm that’s poised for growth.
The Taxman Cometh
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| Image courtesy wikimedia |
Another way in which
the right CPA can help businesses grow is by minimizing their tax burden. While all CPAs know how to prepare tax
statements, some are more adept than others in helping companies reduce their
tax burden. That’s because keeping up
with all the changes in the tax code is practically a full-time job in
itself. Plus, some CPAs are more
comfortable helping contractors or business professionals find tax shelters,
while others are more adept at helping retailers or manufacturers reduce their
tax burden. Finding out the kind of
businesses a CPA prefers to work with can many times lead a business owner to
look for another CPA.
Can You Outgrow Your Current CPA?
Even if your CPA is a
perfect fit for your business today, if your company grows dramatically in the
next few years, you could find yourself in a position where you can outgrow
your CPA. That’s not a bad thing,
provided you plan for the transition in advance and begin your hunt for a new
CPA long before you drop your current one.
While no CPA likes to lose an account, most are more than happy to
accommodate a business owner who is obviously moving up into a class that the
CPA is not set up to handle. The best of
them will even help a client choose the right CPA, then make the transfer of
accounting data easy for a business owner.
Depending on how far
and how fast a business grows, it isn’t uncommon for the owners to switch CPAs
several times. It’s all part of the
learning curve through which businesses go as they strive to beat the odds and
best the competition. When it comes to
understanding the math of the game, who’s better than a CPA to help your
business gain a competitive advantage?
Ben
Kinsey, CPA of Small Business Group works with owners of closely held
corporations in the Northeast Florida region. If you work in the North
Florida area we offer a FREE initial Consultation at our office, please contact
Small Business Group if you would like to know more about strategies for your
business.
Finding the right CPA for a business is no easy task, since a successful business evolves.
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