At some point, it becomes necessary for most business owners to call in a certified public accountant to provide financial consulting to small businesses. However, when should this be done? There are certain things or red flags that should trigger such action. These include spending too much time on the accounting side of the business, making mistakes that will lead to an audit, diminishing assets, depleting resources, stagnant revenue, and lost productivity.
Not being able to focus on your passion
Small business financial consulting services should be sought whenever the time spent on accounting for the business is greater than the time spent on business. Chances are the owner’s passion is really the specialty of the business. For example, a landscaping business probably loves being outdoors and enjoying the creative side of the business. Spending more time hunched over a computer spreadsheet is a sure sign that a certified public accountant is needed.
The dreaded audit
It is a well known fact that the IRS targets small businesses. If that’s not enough to get audited, maybe late filing or other things the IRS is looking for warrant that dreaded IRS letter. Since an audit strikes fear in the heart of every small business owner, this is sure to prompt a call to a certified public accountant. However, it’s a good idea to make the call any time you notice books are out of order and forms are being filed late.
declining assets
Another issue that may cause an owner to seek small business financial consulting is what to do with declining assets. Tangible assets like furniture and vehicles can cost a business a small fortune. In addition, there are also intangible assets that may decrease, such as franchise rights or leases. These can become a complicated topic that can drain a company of valuable resources. Most homeowners may know that these can be tax deductions, but how to calculate them is another matter.
Stagnant revenue
No business can stay in business if it is not making money. However, the owner may be scratching their head trying to figure out where the problem is. The products or services are excellent and in demand. The advertising seems to be adequate. There just doesn’t seem to be a reason for the lack of success. This is why many small businesses need to seek the help of a certified public accountant. They may be able to provide the answers that can really change the business.
Lack of employee productivity
Every small business owner knows that payroll can be one of the biggest expenses facing your business. However, that does not have to be the case. He must not drain the business of all its valuable resources. That’s especially true if the work can be done more efficiently or if it can be outsourced. If you can, then a certified public accountant can help guide some of these decisions or find ways to make the job more efficient.
So if you’re a small business owner, you might want to ask these questions. Is passion being drowned out by the drudgery of accounting? Are mistakes being made that may lead to an audit? Is declining assets depleting resources? Is revenue stagnant? Do employees seem to lack productivity? If the answer is yes to any of these, consider consulting a certified public accountant for financial advice.
