LongSchaefer How-To Video #4: Have You Outgrown Your Current Accounting Relationship?
A good question to ask yourself as your small business continues to grow is whether or not you have outgrown your accounting relationship. As your business grows your accounting needs and the tax-related responsibilities grow, it can often be helpful to reassess your accounting relationship. Learn about what to look for by reading our LongSchaefer how-to entry or watch our video below by Michael Wolterman, LongSchaefer’s Director of Business Development.
Small Business Accounting
Most small businesses, when they start, have a very minimal need for tax advice and tax compliance. What they generally do is contact a family member or friend to do their tax-related services. That person may be a CPA, but they will also have a full-time job and are doing your tax returns on the side. It works out fine for a while because there are not a lot of tax responsibilities. However, when your business continues to grow and your expenses, sales, and tax responsibilities grow your need for a full-time accountant increases. Below are some of the signs that your accountant is no longer keeping pace with your company.
#1 - Your Accountant Can Not Provide Financial Advice to Your Business Plan
As your business continues to grow, you need more than just number crunching and basic tax-compliance from your accountant. If you have aggressive growth goals, cash flow is key. You need an accountant that is able to provide up to date financials in order to make business decisions based on your available cash flow. This is where a level of frustration begins to grow with your accounting needs. They are unable to keep financials current as they have their own full-time job, thus preventing you from making sound financial decisions.
#2 - The Accountant Files a Tax Form Incorrectly
As your business continues to grow, your tax requirements are going to become more complex. Having an audit notice from the government is bad enough. When you find out that it is because of a mistake by your accountant, often a friend or family member, it is even worse. Making certain that you have your accounting needs secure from errors by partnering with a larger financial accountant can help to avoid these issues.
#3 - End of the Year Tax Bill is Higher Than Expected
Far too often, small businesses will get to their end of the year tax bill and realize their bill is much higher than they at first expected. When they go to their accountant they are often shocked and ask, “Why didn’t you tell me about this?” When you do not do any tax planning or have up to date financials, you are unable to make good financial decisions.
LongSchaefer Can Help
LongSchaefer takes a team approach. We are available 9 to 5, Monday through Friday, with a staff accountant and CPA responsible for your books ready to provide you with financial planning. LongSchaefer is not an end-of-the-year tax accountant, we are there with you throughout the year to advise you on business decisions and keep your financials and cash flow up-to-date. If LongSchaefer sounds like the accounting solution to your business needs, contact us today to discuss your available options. Call us at 513.813.4957 or email us at email@example.com today.