Are you maximizing the organizational structure of your business? Your accountant can help you decide if being incorporated, a limited liability company, or a Subchapter-S corporation is the right way to maximize your business. Each structure has its advantages and disadvantages and your accountant can walk you through each and help you assess the best structure.
Every year is a new year for your business and budgeting for the upcoming year can be daunting. Your accountant can help you review past years’ actual results and put together a sound and credible budget that reflects efficiencies and improvements.
“If you don’t know where you’ve been, you won’t know where you’re going.” By understanding the results of your business through the accurate preparation of financial statements, including income statement, balance sheet, and cash flow, you will have the financial roadmap to make decisions and plan for the future.
4. Tax Planning
Taxes are a part of business. Paying your fair share and not more is an excellent way to engage your accountant. Every dollar paid in taxes more than you actually should pay is money that could be used to grow your business, add more workers, or increase your retirement account.
As a business owner you do not plan to fail. However, failing to plan for the future is a sure way to hamper your ability to succeed. Your accountant, using the yearly budgeting information that they have been helping you put together, can use that information tom forecast a five or seven year plan that will require you to understand exactly what drives your business. How do you make money, what are your revenue drivers, what expenses are variable and what are fixed, and understanding how important it is to understand how pricing affects your revenue and your profits? All of these will become increasingly clear as you sit with your accountant and prepare a five year forecast.
Finally, when the business is maturing and it is time to enjoy the fruits of your labors, your accountant can work with you on your exit strategy. That strategy could include a gift to your children, a sale to a trusted employee or employees, a sale to a third party, or some other exit vehicle. Working with your accountant will provide you access to professionals who are best equipped to help you: a business evaluator, a business broker, an investment banker, or many others who are experienced in helping you execute the best exit strategy for you. After all, you deserve it!