Does Your Small Business
Need An Accountant?
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Poor financial management is one of the primary reasons for small business failure, especially in the first year of the business. Since small businesses generally have limited resources, accounting plays a crucial role in providing information that helps businesses in its growth and development.
Finding the Perfect Blend of Accounting Skills and Expertise
Every business is different when it comes to the type and level of accounting services needed. Some small businesses may only need bookkeeping services, while others benefit from many layers of accounting skills from Bookkeepers to Controllers.
If your business is in the small to medium range, it may not make sense to have a full-time accountant or controller, with the high cost of salaries and benefits in your accounting department. The good news is you can still get the advice of these high-level accounting skill sets while paying only for the services need. We work with business owners like you to create a customized package based on your company’s unique accounting needs.
What Are the Levels of Accounting Skills Available?
Recordkeeping Services
Almost all businesses start out with a recordkeeping function which is done part-time by the business owner, a family member, or someone outsourced to comply with tax filings.
Bookkeeping Services
In small businesses, a bookkeeper codes the transactions, reconciles the bank accounts, and generates monthly reports. The bookkeeper can be a part-time or full-time employee, a contractor, or a bookkeeping business that provides this service. Invoicing is usually done by someone in the office or as part of a sales transaction.
Bookkeeping and Light Advisory Services
For small businesses generating roughly over $100,000 per year in revenue, bookkeeping work plus some advisory work becomes necessary. An accounting professional can ensure the books are “done right.” The business owner may need help with cash flow, accounting software questions, setup, cleanup, adjusting entries, payroll compliance, or workflow efficiencies. An experienced accountant is right for this level of service. This is the first level of accounting service where you may see a return on your investment due to the implementation of accounting process improvements and training efficiencies.
Controller Services
A small business earning more than $500,000 in annual revenues is ready for controller-level services. This includes bookkeeping or accounting services which are either outsourced or done in-house by full-time or part-time employees or contractors. An oversight function is designed where an accounting manager reviews the monthly work and discusses financial reports with the owner.
How Can an Accountant Help Your Business?
It’s easy to feel that accounting is a necessary part of doing business, but there are many benefits that can be realized from working with a proactive accounting professional. Here are just a few to consider;
Keeping the Cash Flowing
One of the most challenging tasks of small business owners is managing their cash balances. We can help you get the right tools in place so you can stay on top of your cash. Whether it’s setting up the right reporting, speeding up the collection of receivables, or creating forecasts, we can help you keep your cash flowing.
Accounting System Selection and Setup
Having the right accounting system can make all the difference in the world. We’re familiar with many accounting software options and can help you find the best fit for your business. If you’ve outgrown your current solution, we can help you manage the transition without missing a beat.
One secret in boosting accounting productivity is to make sure your accounting software is set up and customized correctly. We learn your requirements so we can tailor the accounting software to your business and reporting needs. Plus, we can train your staff on the new system so they can be up and running in no time.
The introduction of cloud technology and apps can dramatically improve efficiencies and bring real time data to you regardless of where you are.
Process Development and Improvement
The accounting function is necessary in every business, but it shouldn’t be cumbersome or inefficient. We can take a look at areas within your accounting system that are costing you more than they should be. These could include areas of duplicate data entry, time spent on manual reports, and bottlenecks in general. We’ll suggest improvements that can save your time and money and keep your bookkeeping bill as low as possible.
Are there any areas in your accounting functions that are undocumented? We can help you write a procedures manual for those areas. Good documentation is the key to good training, consistency, and controls.
Profitability Analysis
Do you wonder which product or service line is the most profitable for you? We can perform an analysis of profitability by location, product, employee, or whatever grouping is meaningful for you. This information will help you make better decisions about your revenue mix and make your business more profitable in the long term.
While most accountants stick to cursory expense reviews, we prefer to go deeper. We can help you identify costs that may be outside your industry norms, discover areas where your pricing might not cover your costs, and review profit margins that could be higher.
If you maintain inventory in your business, we can help you lower carrying costs, determine out-of-stock conditions, and identify obsolete items.
Is your business project-based with job costing requirements? We can help you make sure it’s set up right, help you create more accurate estimates, and accelerate cash flow with timely progress billings.
Behind the Controls
Small business accounting functions often lack the internal controls and procedures to help prevent fraud, theft, and other risks to your hard-earned assets. That means your business assets, from cash to inventory to receivables, could be at greater risk of being miss-handled.
We can review the duties of each bookkeeper and make suggestions to procedure changes that will lower your risk and help you better protect your business assets. We can also perform a full risk review and make suggestions to reduce your business risk and strengthen your accounting controls.
Planning, Budgeting, and Forecasting
Do you know exactly what you want your business to look like in three to five years, but are not sure how to get there? We can help you make sense of the financial piece of planning so you can achieve your dreams.
In the short term, we can also help you create a budget for your business so you can control expenses and see where you stand relative to your goals. We can also prepare a forecast to prepare for the multiple scenarios that could impact your business.
Staff Training
If you don’t have the time or expertise for yourself or your accounting staff, we can provide the training they need to become proficient in their accounting duties.
Management Consulting Services
It can be difficult to find good advice when you are in business for yourself. Friends and spouses who are not self-employed don’t often understand the decisions that entrepreneurs make. As a fellow small business owner, we can act as a sounding board for your business ideas and provide a fresh, experienced perspective.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals.