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, dwindling 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 business accounting is greater than the time spent on business. Chances are, the owner’s passion is actually the specialty of the business. For example, a landscaping business probably loves to be outdoors and enjoys the creative side of the business. Spending more time hunched over a computer spreadsheet is a sure sign that a CPA 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 the late filing or other things the IRS is looking for warrant that dreaded letter from the IRS. Since an audit strikes fear into 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 the books are out of order and the forms are being filed late.
declining assets
Another issue that can 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. Additionally, there are also intangible assets that may decline, 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 income
No business can stay in business if it is not making money. However, the owner may be scratching his 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. That 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 truly change the business.
Lack of employee productivity
Every small business owner knows that payroll can be one of the biggest expenses your business faces. 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 outsourced. If you can, then a CPA can help guide some of these decisions or find ways to make the job more efficient.
So if you are a small business owner, you may want to ask these questions. Is the passion being drowned out by the drudgery of accounting? Are mistakes being made that may lead to an audit? Is dwindling assets depleting resources? Are revenues 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.
