Over-relying on free or inexpensive accounting service tools for business analysis can prove ineffective and costly for many small business operators. Instead, it’s always wise to involve qualified accountants.
When dealing with professional accountants, it helps to know what to inquire and when. That way you can be sure that you’re getting your money’s worth.
What’s the best way to get in touch and how often?
Cultivating a frequent and healthy relationship with your accountant is essential. by frequent we mean weekly, monthly or bimonthly. Popular ways to get in touch include phone or via social media handles (Skype, Google, Facetime).
Preparing for the tax season
The primary reason why small business operators hire accountants is to get help with tax preparation. Get informed of new tax laws as well as deductions or claims you can take advantage of to minimise tax burdens. Its advisable to seek such counsel before the deadline of April 15.
It’s in your best interests if your accountant gets to know more about your business as time progresses. This provision allows the expert keep you aware of new developments and to adjust to them in the shortest time possible.
How accountants can help grow your business
With a proper foundation, a qualified accountant can help small business achieve positive growth. First, you must build a robust financial model and update it regularly.
Keeping track of cash flow
Projecting business cash flows can be a daunting task. However, with the help of a qualified accountant, such an exercise becomes much easier. Once you develop a clear projection, the next step is to stick to it.
Understanding your break-even point
Understanding your business’s break-even point is essential in determining aspects such as pricing and profitability. Accountants can help you estimate how many products or hours you need to work to break-even.
Assessing your business value
By examining your financial blueprint and applying the discounted cash flow analysis, your accountant should be able to estimate your business’s worth.
Negotiating business contracts with accountants
Though accountants are not licensed to practice law, they can collaborate with your attorney to offer a better experience.
Finally, remember to strictly follow your accountant’s advice, its the whole point of hiring them in the first place.