You’ve likely worked with an accountant at some point if you own a business. Did you know that accountants do more than bookkeeping and taxes?
Accounting is about understanding information about individuals’ or companies’ finances and operations. Accountants can help you make the right financial decisions.
Are you curious about what an accountant can do to help your business and you? These are some things that may surprise you.
1. Assist with the loan process
A loan is often required to start a business. A qualified accountant can help you explain the purpose of the loan to your lender and offer other financing options.
Bryan Kesler, an accountant, says that once the client’s needs have been met, accountants can assist business owners in securing a loan.
Kesler says accountants can usually help clients gather all the data and information they need for a loan. This includes identifying repayment sources and quantifying the current financial situation. Accountants can work with clients to create compelling loan applications that increase the likelihood of a bank approving the request.
2, Go through your contracts and documents.
It’s a good idea for your accountant to review any agreement with tax or accounting implications.
Dewey Martin, Emeritus Professor at Husson University’s School of Accounting, says accountants can analyze an agreement and tell you about tax and accounting consequences that could affect an individual or organization’s financial prospects. Their perspectives can help clients avoid negative cash management, financial planning, and insurance effects.
3. Assistance with trust and estate planning
You should consult an accountant to ensure that your assets are distributed to your heirs and charities, as taxes can significantly impact your estate.
Martin says accountants can help clients pass assets to their children or grandchildren before they die. Martin also explains that non-profit organizations can benefit from the generosity of a client while minimizing tax ramifications. These strategies allow clients to ensure that socially-beneficial organizations receive a higher percentage of their assets.
4. Planning for the future of your business
Martin says that your accountant can help you make financial decisions and plan for your company’s future. If you want to leave your business to the next generation or employees, this includes planning for succession.
5. Provide virtual CFO services
Outsourcing is an option if your business needs to be bigger to pay a CFO, but you still need tailored financial advice.
“As your business operations become increasingly virtualized, you can outsource financial oversight to accountants and financial professionals without having to pay for their holiday pay and health insurance,” states Ben Sprout (accountant and CFO at DollarSprout.com).
Sprout claims that your accountant can use online accounting software, video conferencing, and electronic document sharing to help you decide on taxes, cash flow, and strategy. This is in addition to paying them each spring for their tax returns.
6. Let us help you determine how to grow
You know that your business’ success depends on hiring the right people at just the right time. Gusto’s Will Lopez, head accountant community, said accountants are uniquely positioned to assist clients in growing their businesses through smart hiring.
He says that accountants can help small businesses manage their most valuable asset, their workforce, by providing them with people-focused financial metrics such as operating profit per worker and average monthly employee expense.
