How often do you communicate with your accountant? If you only speak with your accountant a couple of times per year around tax time, then you may not be making the most of their expertise.
As a business owner, you should be providing your accountant with all of the documents needed to track your past spending and growth. But did you know that your accountant can help you plan for the future as well?
Accountants have the skills to help you set goals and grow your business. Did you know that they can help you even set goals for the next year or even 10 years from now? All you have to do is provide them with additional information.
Here’s a list of topics to discuss with your accountant to ensure that they help you reach your goals.
What’s the end goal for your business?
Every business will have an end goal. A small software startup may have an end goal of being acquired by a larger company. Whereas you may want your small service company to run for the rest of your life to provide you with steady income.
If you’re a small startup looking to get acquired, your goal would be to achieve very rapid growth with little attention paid to profitability. Your accountant would use this information to create financial goals that will help you look more appealing to larger companies.
What type of growth do you want for your company
Some people want to keep their business with only a couple people on staff working out of home offices. Others have hopes of large staff and multiple office locations. Regardless, your accountant can help ensure that you’re spending your money on the right parts of your business to match the level growth that you want.
When do you want your business to be profitable
Depending on the type of business you’re running and if you need investors to get started, you may not be able to be profitable from the get-go. Your accountant will be responsible for determining the distribution schedule and when the company will expect to be profitable for investors.
Additionally, if you’re starting a small business and you have a family and bills to pay, your accountant can focus on improving cash flow to ensure that you get money in your hands as soon as possible.
How much do you want to earn each year
Paying yourself a smaller salary means you can spend additional money on advertising and new equipment, and a larger salary means limiting your growth. However, as a new business owner, you may need the profits right away and won’t be able to put a lot back into the business.
Your accountant can also help you determine if it’s the right time to switch from a sole proprietorship and incorporate your business, or if it’s the right time to hire staff and take a smaller role. Your accountant can help you make the best choices at each stage.
How big of a role do you want to have in your business
CEO, COO, CMO, janitor? Do you want to have this role forever, or maybe even take a smaller role as you get closer to retirement. Heck, maybe you just want to get it up and running and then stay away from the daily operations as soon as possible.
Every business and business owner is different. Some people love being in the trenches day-in and day-out. Others just want to set up a successful business and get out as quickly as possible to start their next venture.
You need to make sure to have this conversation with your accountant, and what possible changes you want to make regarding how much you work, the cost of hiring employees, etc.
Will your family play a part?
Wondering if it’s smart to start a “family business?” Well, there’s certainly some tax incentives for hiring family members. However, having your entire family’s income coming from a single source of revenue cane be risky, and you will need additional help from your accountant to plan for how you grow this company.
Establishing a Partnership
Whether you’re starting your home business or getting ready to create the next big Silicon Valley startup, you’ll never be alone. Part of running a successful business means establishing partnerships with key individuals that can help you become more successful. One of these people will be the person or team you hire to do your accounting. If you share your goals with the right accounting team, then you’ll be able to grow faster and reach your financial goals.