What do you think is the main reason small businesses fail in this country? I think the answer probably came pretty quickly to you. The answer is cash flow problems. Here is a bit harder question to answer. What do you think small business owners report as one of the biggest back-office issues? That answer is overwhelming, regulatory burdens.
Fortunately for you and other business owners, you have a major ally to help with both of those issues. You can hire an accountant. Kohler Financial is well versed in helping businesses of all sizes with all of the back end burdens of running a successful business.
We find that small business owners, who are used to handling accounting matters on their own, tend to stop shy of hiring an accountant because they have some aversion to the high expense. But let’s be honest with ourselves. When it comes to the stress, uncertainty and all the other various problems of owning your own business, hiring a professional accountant can be the best decision you ever made. Plus, one that saves money in the long run.
Let’s take a look at the top 5 ways an accountant like Kohler Financial can reduce your workload and increase your peace of mind.
Tracking your numbers
We think the biggest reason to find and work with the right accountant early on relates to your financial reports. Having an extra set of trained eyes on monthly reports like your P&L statement can be invaluable. A good local accountant can help you to set realistic, measurable business goals and help you track your progress towards meeting these goals on a weekly or monthly basis. That adage in business, “if you don’t measure it, you can’t manage it,” holds true. These days software like QuickBooks can certainly generate financial reports and allow you to look into the smallest detail. However, taking the time out to sit down, study and understand those reports is another matter. Chad, the owner of Kohler financial thinks reading financial reports is relaxing.
If you don’t have a regular practice of analyzing your Accounts Receivable Aging reports or running detailed Purchase reports, you’re not alone. Business owners are the busiest people. We understand that. Furthermore, most business owners would need several extra hours in the week to fit in the kind of financial analysis that accountants like Kohler Financial perform. Close your eyes and think about the advantage to your businesses bottom line when you have a dedicated financial expert on your side who can help you keep an eye on the most critical numbers, learn from them, and act on them.
Year-end reporting
The end of the year is a busy time for many reasons. It’s also a must time to get the input and advice of a knowledgable accountant. If you have done your end of year reporting you know that when it comes to closing out your books, there are a few small changes that can make a huge difference tin the bottom line for your boks. Rather than you having to figure out what steps to take, an accountant like the professionals at Kohler Financial will have the answer. An accountant can be one of your best assets in this process.
Managing cash flow
As mentioned earlier, and as a business owner knows, cash flow can make or break any business. Behind every healthy business is someone who keeps their hands on the cash-flow wheel. On the other hand, a timing misstep when it comes to cash flow has brought businesses large and small to their knees.
An accountant knows what reports need analyzing, when, and what the red flags are in this area. Has there been a change in a customer’s paying habits that could signal trouble ahead? Do you have a larger tax liability this year than last? Is it time to re-negotiate payment terms with one of your vendors? The answers to these questions relate directly to your overall cash-flow picture and are found in the financial reports. An accountant is there to help you minimize unwelcome surprises and plan ahead for maximum profitability.
Staying informed
Local regulations, tax rules, state and federal laws that relate to your day-to-day operations, all change often. Knowing the financial and tax implications of all these changes is part of the business of accounting. And it’s another area where a good accountant can save you hours of reading and searching for the best, most up-to-date information. Consult regularly with an accountant and you’ll be able to spend those valuable hours running your business instead.
Avoiding costly mistakes
It would be great to be a business owner with the ability to see into the future. But the next best thing is to know your numbers inside and out as you move your business forward. By aligning yourself with an accountant, you will find that this is the best way to ensure you’ll always have the information and number that you need. Mistakes like non-compliance, missed due dates, and cash shortfalls are almost negated completely when you hire an accountant like Kohler Financial.
The right accountant and an orderly accounting system will save you time and money in the long run, allow you to put your energy and focus on what you do best, and position your business for maximum profitability and success.