Operating a successful small business can be challenging, even in the best of times. You have to focus on your customers and possibly manage employees and vendors. Of course, you also have to make sure your product or service is consistently exceptional, to keep your customers coming back. How often do you think about your finances? Have you considered looking into business accounting firms? It might help you to know which services are provided by accountants, so you can make the best decision for your business.

Understanding the Financial Health of Your Business

Business accounting firms can examine your financial data to be sure your business is healthy and is on track to continue to grow and prosper. As a small business owner, you may only have time to check your budget or profit trends occasionally. An accountant will examine your data regularly and help you better understand your numbers.

Even though it may seem like you are successful when you are able to pay your bills every month, you want to know that your business is on solid ground consistently throughout the year. Your business accountant can work with you to prepare a realistic budget that you can review monthly to be sure you are staying on target financially.

Financial Reporting

Do you know what your profit and loss statement says about your business stability? Are you on budget for the year? Do you know how to create a financial report that shows your current numbers and compares them to your previous year? These are some of the things that business accounting firms can help you with as well.

Financial reports such as cash flow analysis and projections, break-even analysis, and balance sheets can give you a clear picture of the current worth of your business. They can also tell you whether it’s time to increase your prices, search for a new vendor, or expand and hire more staff.

Taxes

Most business owners think of their financial statements when it comes time to do their tax returns. Business accounting firms can make sure you are prepared during the entire year and not just at tax time.

An accountant will review your financials, help you prepare your taxes, and work with you to plan a strategy designed to save your business money and reduce your tax liability. The accountant can also ensure that you stay in compliance while taking advantage of all the legal tax deductions for your business.

Preparing for Loan Applications

When you work with a business accountant to examine your current and future financial situation, you might decide it’s a good time to expand your business or to purchase new equipment. If you need a loan for your business, you will definitely need accurate and professionally prepared financial data. Your business accountant can ensure that the numbers are where they need to be and are in the right format for a lending agency to be impressed and convinced that you are on the right track.

Business Plan Essentials

Preparing a detailed and realistic business plan is one of the most important things you can do for your business success. Your business plan will include a description of your organizational structure, marketing efforts, competition, and financial data. Your business plan should include income statements, balance sheets, and cash flow statements for the past three to five years as well as a prospective financial outlook for the next five years. A professional business accountant can prepare cash flow analyses and projections that will help you plan appropriately for your growing business.

Planning for the Future of Your Business

When you have a better idea of where your business is now, financially, you will be better able to plan for a successful future. Business accounting firms can help you prepare forecast reports so you can make better growth decisions. You will be able to see how your fixed and variable costs are projected to compare with your revenue. When you have a clear picture of your expenses and revenue going forward, you can work with your accountant to plan for profitable growth.

Clear View Business Solutions Is Here to Help Your Business

Laying a strong foundation for the accounting and bookkeeping functions of your business is essential to your success!  The professional team at Clear View Business Solutions are experts in the nuances of accounting for sole-proprietors, partnerships, non-profits and businesses with fewer than 10 employees. Contact Clear View Business Solutions to learn more about how our accounting services can help you and your business become more successful. Give us a call at (520) 544-0177.