5 Ways Accountants Can Help Businesses Grow

5 Ways Accountants Can Help Businesses Grow

Growing as a business is certainly of importance to most business owners. After all, you will want your company to flourish and continue to experience growth for many years to come. However, in order for your business to head in a positive direction, it helps to utilize proper financial planning and analyzing…that’s where an accountant comes into play!

Are you aware of how accountants can benefit your own business? Many might believe an accountant just helps with the crunching of numbers, but you’ll be surprised that great accounting practices actually help businesses grow and generate more profits in the process.

We understand just how beneficial an accountant can be for a business! We have helped several businesses in the Chicagoland area and provided them with great information that’s helped their businesses. That’s why we have gathered five ways in which accountants can help a business grow by working with an accountant like Motl Accounting in Dundee, Illinois. If you would like to discover what these ways are, be sure to continue reading:

  • Creates Budgets & Forecasts Reporting. It’s important that every business has a plan for their future. Therefore, you will want to set up goals to achieve over the next year, as well as create charts and graphs to keep yourself on track and complete them. By working with an accountant, you can have reports created which will showcase how your fixed and variable costs compare with your sales volume throughout the year, providing you with knowledge of the market conditions that you will need for profitable growth.
  • Discovers Key Performance Indicators. Every business has key performance indicators. If you are in retail, you might use inventory turnover for construction or it might be job costing. Your accountant should assist you with discovering yours, as well as advise on methods to set up reports, allowing you to see how they perform over time so that you can make the best decisions for your business for its future growth.
  • Maintains Cash Flow Projections. If there is one thing you want to understand as a business, it’s your cash flow! After all, without cash your business wouldn’t be able to operate at the level you’d want it to. An accountant will create financial reports right out of your accounting software which will assist you with planning your key performance indicators and properly maintaining your cash flow. It’s important to know how to expand your product lines, increase direct costs and add employees in a way that keeps your cash flowing just as it should.
  • Determines Your Businesses Value. It’s important that you know the value of your business so that you can plan for your future. Seeing as opportunities or life events can present themselves at any time, you will want to know how much your business is worth, given the current market conditions. An accountant can assist you with getting to determine your businesses value, so that you can maximize it and your tax liability. We have professionals we partner with at Molt Accounting that help our clients with business valuations. 
  • Creates Advisory Boards. For your business to remain fiscally strong and healthy, you will want to be advised and know what to expect for the years to come. An accountant will work with you to develop a system so that you can forecast budgets, cash flow management and an overall financial analysis for your business. This way you can monitor your goals and business growth through a dashboard and ensure that it is always headed in a positive direction.

These are just a few ways in which an accountant like us can assist your own business with growing.

Are you ready to work with an accountant in the Northwest Suburbs of Chicago to grow your own business and provide your peace of mind in the process? If so, please get in touch with us one of our accounting therapists at Motl Accounting, as we would be pleased with the opportunity to assist you with doing so!

 

Best Practices for Small Business Taxes

Best Practices for Small Business Taxes

Running a business is no easy task, especially when you have to file taxes each year to ensure that you are in compliance with current regulations. Having the expertise of an accountant throughout the year and especially during tax season can relieve much of the stress you may feel at tax time.  

Making financial decisions for your business without consulting an accountant can put your business at risk and even cost you more money in the long run. However, if you make yourself aware of some of the best practices for small business taxes, you can ensure that your business operations are headed in the right direction.

Every business should have confidence in their taxes! We have done thousands of small business taxes at Motl Accounting and have here for you some of the best practices for small business taxes.

  • Hire an Accountant. Hiring an accountant will greatly benefit your business! Throughout the year, your accountant will track your income and spending ensuring that you don’t have cash flow problems, as well as monitor your gross and net profits. This way, when it comes time to prepare your taxes, you will have all you need to properly file.
  • Keep Records. Keeping accurate records throughout the year of all of your business transactions will ensure that your tax return is correct. With inadequate record keeping, you could be leaving out deductions or even putting yourself at risk for an audit. It’s best to invest in an accounting software to assist you with keeping track of all of your income and expenses.
  • Understand the Difference Between Net & Gross Income. Business owners often forget to take into account the difference between their net and gross income. If your product costs more money to make than you charge for it, you will lose money, regardless of how many units you sell. It’s important to know what your gross and net profits are so that you can better forecast and ensure that your taxes are accurately prepared.
  • Correctly Classify Your Business. By failing to correctly classify your business, you could result in overpaying taxes. Each business classification will have a different effect on your taxes, whether it be Limited Liability or Sole Proprietor. It’s important to consult with your accountant or attorney to discover the best classification for your own business.
  • Manage Your Payroll. The IRS typically checks every quarter to ensure that a business’s payroll taxes have been paid. Therefore, it is recommended that you hire a reputable company to assist with your payroll. Whether you are working with classic fax reporting, paper checks, or even electronic reporting and direct deposit, you will want assurance that yours is handled as it should be.

By properly filing your taxes, you can have confidence in the overall operations of your business. These are just a few practices that you will want to keep in mind when it comes to your own business taxes.

With that being said, if you are seeking an accountant to assist your business, please get in touch with us here at Motl Accounting. With years of accounting experience in the Chicagoland area, we would be pleased with the opportunity to provide you with our tax services that provides business owners peace of mind.