When it comes to strategic business planning, you need expertise and experience on your side. You must gather data, analyze every aspect of your business model, and set realistic goals for your profits. Does this sound overwhelming? Business planning can be. Luckily, you have professionals on your side at LongSchaefer. Today’s blog from LongSchaefer explains five ways accountants help with business planning.
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1. Financial Analysis
Business planning has many facets. Perhaps the most important one is the financial analysis of your company. You can’t plan for the future if you don’t understand what’s going on with your business right now. Accountants dive deep into your numbers, including cash flow, operating expenses, gross revenue, and projected profits.
Do you have enough loyal customers to sustain your business in lean times? Do you have a target audience that creates a growth pattern for the future? Business planning with accounting professionals can help identify trends for growth in your current numbers.
2. Data Gathering
Financial analysis in a business plan is only as good as the data you have on hand. Accountants know what data you need to collect for a thorough analysis. The more data, the better. Not all of the data will be crucial, but computer software takes the raw numbers and turns them into reports you can use to make decisions about the future of your company. LongSchaefer can crunch the numbers using the right computer software to analyze your current financial standing. We can take a look at your business as a whole, drill down to the unit level, and analyze your costs and pricing models.
3. Risk Management
Risk management is a huge part of business planning. Whereas financial analysis is a quantitative measure, risk management is more qualitative. You must identify future risks to your business and mitigate those risks as much as possible. Think about supply chain issues, labor costs, competitors in your target market, and seasonal ebbs and flows that can all have negative impacts on your company. An accountant can identify and even quantify what these risks can do to your business model.
4. Bank Loan Applications
Applying for additional financing is a daunting task. Banks have stipulations and standards. You’ll need an excellent credit history for your business. Financial institutions also require a stout business plan and financial analysis as part of the application process. The better your business plan, the better your chances of getting an approved business loan. Accountants can help you create the best possible plan for you.
5. Profitability Goals
Profits depend on cash flow and growth. Your business plan can identify growth potential by providing insights on cash flow patterns, inventory management, business financing, diversity of offerings, and the prices of your products or services. Future growth and profitability may include an acquisition of a competitor, adding more staff, or altering the prices of your current offerings. Which ones are right for you?
This is where accountants thrive on big-picture goals: We help you see where all of the analyses, data, and risk management are headed. If you tweak your prices, where are profits in six months? If you get that business loan and buy a competitor, how quickly can your revenue grow? What happens when you invest in another product line? Accountants can show you how different paths forward could affect your company as you create a business plan for sustained growth and profitability.
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LongSchaefer: Business Planning for You
Business planning is no small feat. Whether you want to see one year, five years, or 20 years out, LongSchaefer helps you with comprehensive business services customized to your needs and your goals. Contact LongSchaefer or call (513) 245-0300 to see how we can help your business plan for the future.