Planning and forecasting is at the heart of every business. It’s so easy to get caught up with the day-to-day, and before you know it, you’ve got to the end of the month, and you aren’t sure what’s coming in, you’re living hand to mouth and just surviving.
This isn’t unusual for small business owners, but it’s also not unusual for a huge proportion of businesses to collapse each year. That’s no coincidence. Lack of planning can be the end of your business. Simple as.
This is where your accountant can get involved (if they are a good one, that is). I bet not all of you reading this blog realised that your accountant could do that, right? We’re more than just number crunchers you know!
Imagine being able to be completely clear on what’s happening in your business? How one month is performing compared to another, using it to make projections for the future, and being able to understand where the gaps are, and perhaps where and when you need to focus your marketing efforts?
Your accountant can take a look at the figures, and instantly know where they can help. For example, are you charging enough? Should you be cutting down your expenses?
They can help with cash flow management, as well as ensuring you are protected as much as possible in case of the unexpected happening. For example, setting aside some funds in case of currency fluctuations, or if a client decides to end their relationship with you.
They can also advise on ensuring your business is operating properly, what to do if taking employees on, whether the right insurances are in place, etc. They will tend to have built relationships with other professionals in the industry and are always happy to refer to recommended lawyers, HR professionals etc.
But it’s more than that. They can help with business strategy too. For example, they (and when I say they, I really mean me!) can take a look at forecasting documents with you. Work out what you need to do to make the business viable, as well as helping to put systems and processes in place to analyse what’s going on and how you’re performing.
We’ll also act as your mentor, keep you going when times are tough, and celebrate when things are going well (and if they are, then we can advise on how best to make the most of your profit)
Don’t forget that we also have many other clients in many other sectors, so part of what we do is to put people in touch with other. I’m like the business matchmaker. If your business is looking for some admin support, then I will know someone. A supplier for your product? If I don’t know someone directly, I will know someone who knows someone.
The key is to set objectives, put processes in place to monitor, measure and evaluate. This puts you in good stead to make informed decisions, and plan for the future. To prepare you for the unexpected as much as possible, and to know that you are operating your business in the right way for you.
And your accountant should be the key person to help you do that. And if they don’t, then they aren’t the right accountant!