One of the things you need to do to grow your business is to be informed. One person who can help you with the same is your accounting services provider or accountant (if you have not outsourced your accounting services). Your accountant is your company’s first line of defense when protecting your business and its finances. Don’t take them for granted.
Asking questions to your accounting services provider or accountant is a great way to ensure that you are doing the best thing for your company. Whether you are just starting a new business or are looking to grow your existing one, here are 11 questions you should ask your accounting services provider or accountant if you want to grow your business. Check out the list, and ask these questions if you’re ready to challenge yourself and start growing!
1. Is my existing business structure suitable for growth?
Some people start a business, and it does well, but after a few years, the business encounters bigger growth than expected, and their current business structure may not be able to handle this growth. Many times, business owners don’t know if the existing structure of their company is good for growth. You should consult with your accounting services providers or accountant as they have the right experience for business structure decisions.
2. What is my business’s break-even point?
The break-even point is the point where your revenue equals your expenses. Knowing this information can be beneficial for making decisions like expanding into a new market, hiring staff, and increasing prices. Your accounting services provider can help you learn about your break-even point by analyzing your financial records, thus helping in strategic financial planning.
3. What area of my business drives my revenue?
One of the most fundamental questions you need to ask your accounting services provider is about the area of your business that drives your revenue. It is essential to understand how much money you’re making and where it comes from.
4. What records should I maintain?
The foundation of bookkeeping and accounting is based on keeping records of the financial affairs of a business. You should have a fair idea of what records you need to maintain, as these records are mandatory in tax filing. Your accounting services provider is knowledgeable enough about tax and thus will be able to offer advice on what records to keep based on what is essential for your size of business and industry.
5. Is my cash flow healthy enough, how should I improve it?
If you want your business to grow, you need cash flow. You won’t be able to grow your business without a healthy cash flow. When was the last time you looked at your cash flow? If it is not where it needs to be, and you don’t know how to improve it, ask your accounting services provider! They can help you budget surplus funds or help you find a way to cover any gaps.
6. Should I hire or outsource different business functions?
Hiring or outsourcing different business functions is a decision that requires careful thought. Hiring a full-time employee can be expensive, but the benefits of having someone always on hand to handle specific jobs make it worth the expense. Outsourcing allows you to work with an outside company without hiring an employee, saving you money while providing better quality service. Your accounting services provider will be able to provide you with a cost analysis of hiring and outsourcing, allowing you to make a beneficial decision for your business.
7. What are my best financing options for growth or expansion?
Financing options are the best way to grow your business. When you speak with an accountant, they will be able to tell you which financing option is suitable for your business. They may even have ideas that you haven’t considered yet. Your accountant will know what kind of financing option will work best for you, and they can help show you how to negotiate the best deal and make it a reality.
8. What are my tax obligations, and how should I prepare for tax seasons?
Your accountant will prepare a tax plan for you based on the type of business you run. They can help you prepare a budget and forecast the profit. Most accountants will set up an automated system to file taxes online. It is crucial to have an accountant who is knowledgeable about both state and federal tax laws along with other regulations that will be applicable to your business.
9. Are there any industry-specific tax regulations that I should be aware of?
Tax regulations can be different in every industry, and it is vital to ask about them. Not knowing about these regulations can lead you to buy non-tax-deductible equipment or landing in a higher tax bracket than you would have if you knew the rules of your industry. Your accounting service provider will have a good idea and can help you avoid such issues.
10. What tax credits & deductions can be advantageous for my business?
When you start a small business, the most significant tax benefit is being able to write off business expenses. But as your business grows and your expenses increase, you may start to need more tax credits. Your accountant will be able to help you find any tax credits available for your industry, including credits that might apply to your specific situation.
11. Are there any upcoming changes in tax regulations or accounting standards that might impact me?
All business owners need to keep up with the latest tax regulations. New accounting standards and changes in taxes might impact your company. It is essential to always have an accountant by your side who will look out for these things to make the best decisions for your business.
In conclusion, the most critical question to ask your accountant is if they can help you grow your business. If they can’t, they are not worth hiring. The best accountants can handle your bookkeeping and accounting process with ease. Ask them how effective their solutions are in helping your company grow and the average increase in revenue resulting from their service.