People are leaving their jobs in droves in search of their own promised land. During this great exodus, the need for accountants rises, creating opportunities for accountants who see the signs.
This article will discuss how an accountant can help entrepreneurs, improve established companies, and stimulate business growth.
Entrepreneurs and their New Businesses
Entrepreneurs are dreamers with ideas and projects to improve the world around them. They think BIG, and those big ideas need an accountant to provide vital financial details.
First and foremost, a new startup needs a solid financial plan. This plan is key to success because it communicates how much money they have and how to spend it wisely.
Simply put, business owners need a financial plan to understand the real purpose of financial reporting.
The best ideas in the world will get nowhere without a financial plan to back them up. The Bureau of Labor Statistics in the United States keeps statistics on how often businesses fail. From 1995-2015;
|Years in Business||Failure Rate|
According to this, more than HALF of new businesses fail within five years. It is during this time that accountants can be of the most significant help to entrepreneurs.
A financial plan defines a company’s goals and objectives. It creates the financial roadwork to achieve hopes and dreams. Accountants are critical to new businesses by providing extensive analysis, detail, and forecasting that entrepreneurs tend to overlook.
Helping the Businesses Grow
Accountants are not only essential during the startup of a business. Their skills continue to be valuable as the business grows.
A growing business is exciting and brings about new opportunities and challenges.
Once out of the startup phase, growing businesses have a new set of challenges.
If the business is going to grow, it is going to change. Change leads to growth.
Changes may include increased payroll, capital investments, and new accounts receivable/payable. These are all areas (plus many, many more) where your accounting experience and knowledge will be invaluable.
Growth is good, but growth out of control is dangerous. Entrepreneurs have a vision that they want to execute. They want to conquer their industry as quickly as possible. Your knowledge and experience will help stabilize growth and keep it manageable.
Entrepreneurs and established business
The business is cruising along. It’s well established, growing steadily but surely. Is this a place for an accountant? Yes, an accountant is critical for this entrepreneur’s continued success.
When discussing financials, make sure to keep it simple and straightforward. Entrepreneurs have a lot on their minds.
Suggested reports accountants and financial advisors should be running are:
- Generally accepted accounting principles (GAAP)
- Financial statements
- Month-end accounting
- Financial reporting
- Revenue accounting
- Contracts administration
- Yearly tax preparation
- W-2s and 1099s
- Fixed assets tracking
These areas benefit entrepreneurs and their businesses, ensuring they are happy clients. Most entrepreneurs’ minds are usually on something other than these essential details and need help seeing their financial data. Even if they have some experience in these areas, your more comprehensive knowledge and a second set of eyes are crucial to help them trim financial waste.
Help them realize these skills are part of your job.
Whether they realize it or not, entrepreneurs need accountants and financial planners to help them achieve the ideas they are bringing to life. It’s your job, as an accountant, to show them why they need you.
Let Reach Reporting help you provide your clients with the reports they need to make wise business decisions.