Business owners who think they need to do their own accounting are making a crucial mistake and holding themselves and their business back.
The smart solution is to outsource your financial reporting to qualified CPAs or accounting experts so you can focus your attention on growing your company and not working for it.
Unfortunately, it’s not always easy to know how to leverage the experience of a CPA and understand how they can help you grow your business.
Here are 6 crucial reasons to outsource your accounting to qualified accountants that you probably didn’t even know:
1. Define Your Business Strategy
Without a complete understanding of your financials, your business is going to struggle. Your CPA can assist you to define your targets or goals – professional and financial – then outline a map or strategy for you to fulfill your goals. You'll end up with "key performance indicators" (KPIs), which will allow you to see if you're on the right track to success or to let you know some adjustments need to be made to make sure the actualization of your objectives.
2. Assist You in the Loan Process
Applying for a loan is overwhelming. Having a CPA who understands your financial position can give you advice on presenting the purpose of the loan and to consider various options for financing, including whether a bank loan is even desired or necessary. Once the client needs have been qualified, accountants can help business owners with the next phase of winning a loan. For that, they will be quantifying the current financial condition and the credit need, as well as helping identify repayment sources. In the last stage, they will assist you in crafting a compelling loan application and make sure the business owner put together the information that will improve the chances a bank will approve a loan request. If you need additional help with your stimulus loan application, our accounting experts are ready to help. Consult a CPA or CFO advisor for specific guidance.
Starting a brand new business may be exhilarating, but it takes more than a good idea. You need to understand that it will make money – and you need to convince investors and lenders for the same thing. An experienced CPA can do this for you. They will help you to identify your startup operating costs and make credible revenue forecasts. They also know which lenders can help you so that you can approach the right person for finance. Plus, they'll work on your pitch, so you're able to impress those lenders.
4. Help You Stay in Your Genius
Outsourcing your financial reporting allows you to focus on what you do best in your company. Even if you are a CPA or have an accounting background, it doesn’t make sense for you to do your own accounting. A CPA or accounting firm is going to compile all your records for you and give you the weekly or monthly reports you need to make quick judgements about what decisions you should or should not be making. If you did this yourself, you divert your focus from what matters and would spend significantly more time keeping your own records than outsourcing your accounting function.
5. Prepare You for the Worst Case Scenario
The last thing you want to do is to put your entire business on hold so you can deal with the IRS during an Audit. You want to outsource your financial reporting so that you can direct all IRS questions and documentation requests to your CPA. They are experts at organizing your records, they will understand what the IRS is requesting and most importantly they can give you advice on how to handle what needs to be done if problems do arise. They may even be able to represent you in court against the IRS if they have an Enrolled Agent on their team.
6. Help You Find Efficiencies You Didn’t Know Existed
When you outsource your financial reporting, a good accounting firm or CPA is going to help you identify areas in your business that are inefficient from a financial perspective. By tracking your expenses and cash flow, they may see areas you can focus on to improve output. They may catch vendors who aren’t performing. They may catch inefficiencies in your inventory turnover. And these are just a handful of examples that outsourcing your financial reporting can bring to your company.
What To Do Next
Outsourcing your financial reporting should be a priority for every small business. You don’t have time to take the CPA exam and become a tax expert. The IRS doesn’t care if you don’t know what you don’t know and expects you to follow their constantly changing regulations.
Investing in a firm that understands your industry and can fulfill your needs is going to help you leverage your time and their expertise to help make tracking your accounting stress free and become your go to decision making tool.
If you are interested, we’d love to see if Ignite Spot would be a good fit to provide accounting services for your business.
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