Start-ups owner multi-task their way out of bookkeeping and accounting and a few even succeed with great effort. However, as the business grows, the numbers rise and so do the insights and the opportunities they open up. Only an experienced CPA can help you glean these insights and provide you with action steps that help you smoothly scale your business without any hiccups.
As one of the leading remote accounting firms specializing in outsourced accounting and bookkeeping services, we are often consulted by small and medium businesses. More often than not, the problem always tends to be the cash flow issue, tax problem, Accounts Payable muddle or Accounts Receivable complication that thwarts the growth of the business.
For smooth sailing and scaling, these issues must be sorted with the right accounting expertise and assistance – this is what makes an experienced CPA an essential asset for a business. However, not many businesses are aware of the groundwork that needs to be done with the help of a CPA. If you are one of them, then a blog is for you.
With the input of our accountants at Outsourced Bookkeeping, we are listing 5 key questions you must ask your accountant when you aim to scale your business.
How to improve the cash flow of the business?
Cash flow problems are the bane of small and medium businesses. In more than 90% of the cases, cash flow issues are the main reason for the failure of SMBs. It is also the most common problem that is consulted at Outsourced Bookkeeping too. The long AR cycles, AP issues – late payments & penalties, growing expenses, waste inventory, and cash crunch are some of the symptoms of imminent cash flow problems which can be culled with the right cash flow strategy. More often than not, the key lies in fixing the Accounts Payable & Accounts Receivable.
Is the current business structure the right one for me?
It is always a good idea to check if your current business structure bodes well with your long-term growth plans. Also your current business structure decides your taxes and even your liability when you are business is sued by others.
While you have started your business with a certain plan in mind and have zeroed in on your business structure, some other business structure could be beneficial to you. If you were a sole proprietor, look into the pros and cons offered by an LLC or S-corporation in the context of your immediate and long-term plans. Only a certified CPA can provide you right guidance based on your business plan.
How to adequately prepare for a profitable tax season?
By this time, an entrepreneur should get an idea of the daunting tax season and the burden it can lay on a business both in terms of time and money. So the can do is to consult your accountant about the possible tax deductions and opportunities to improve tax returns. Having prior information about the tax credits, deductions, and qualified business expenses will strongly equip you to adequately plan out your tax season beforehand without any hiccups.
As a part of tax consulting and filing services our CPAs at Outsourced Bookkeeping perform cash flow analysis, financial forecasting and budgeting to find tax opportunities for our clients.
What are the available financing options?
Growing and scaling your business will need additional funds. When the current revenue and profits don’t cut it, the right financing options can be of great help. An accountant can help guide you and give you a perspective of available financing options that can go well with your current business plans. Loans, business credit cards, investors, crowdfunding, AR financing – an accountant can help you understand the pros and cons of options available and assist you in obtaining the required financing.
How to increase the profitability of your business?
It’s not revenue but profitability that is paramount for any business looking to grow. Many businesses with lax booking and accounting squander their revenue with financial mismanagement. A business can improve its profitability by boosting its revenues while cutting its expenses and optimizing its accounting. Increasing the prices, updated terms and negotiations with suppliers and vendors, market expansion, tax planning and more importantly – accomplishing more with fewer resources.
For example, by outsourcing accounting and bookkeeping functions to outsourced accounting firms, SMBs can save time, and money and bolster their in-house accounting department with strategic technical and manual help. At Outsourced Bookkeeping we regularly work with small and medium businesses to improve their accounting performance to ensure steady growth. Having worked with hundreds of small and medium businesses our team of certified CPAs has more or less encountered and solved every problem that may arise for an SMB. If you are a business looking for expert accounting help that can provide the right strategic and technical assistance to help your business grow, you can contact us here: https://outsourcedbookeeping.com/