Growing your business can be a daunting task, with many factors to consider. One of the most important steps you can take is to consult an accountant or a business planning specialist who will help guide you in making informed decisions for the future of your business.
But how do you know which questions to ask? Knowing what kind of information an accountant can provide and understanding the importance of each question are key components in ensuring success.
Here are 7 essential questions that should be asked when talking with your accountant about growing your business:
1. What changes could I make that would benefit my business?
Starting and running a successful business requires careful consideration of important factors to ensure success. One major factor is the role of your accountant – a skilled financial specialist who can help you make decisions that will have a positive impact on your company’s profitability and longevity.
Asking the right questions is key to forming an effective relationship with your accountant that can lead to great results for your business. Consider asking them what changes could be implemented that would benefit the business in terms of taxes, expenses, projections, and more.
By understanding their strategies, you’ll be better equipped to tackle common financial bumps in the road that come with taking risks and growing a successful business.
2. How can I get better at managing cashflow?
Cash flow is key to keeping your business running smoothly and successfully. Managing cashflow is an important skill when running a business and can be a source of stress.
So, if you are looking to make improvements in this area, talking with your accountant or business planner is always a great first step. They know the ins-and-outs of your finances and can provide advice on any changes or updates you might need to make to optimize efficiency.
Asking your accountant “how can I get better at managing cashflow?” will provide valuable insight into the best practices for distinguishing between profitable and non-profitable investments, setting up a budget plan that works for you, and understanding what expenses need attention first. With their expertise, gaining greater control over this subject should prove easier than tackling it alone.
3. What financial planning should I put into place?
Financial planning is essential when it comes to ensuring the success of your business. It can help with everything from budgeting and forecasting to making smart investments and minimizing tax liability.
But with all its nuances, financial planning can be daunting for many business owners. This is where an accountant or business planning specialist can help. They are experts in all things finance related, and can help you plan for costs, future growth, and asset protection. An accountant will also make sure you understand any risks associated with each investment before you make a decision.
A good financial plan means being secure in knowing that your future is taken care of.
4. How can you help me grow my business?
Your accountant can help you set up a system to track and measure your business’s overall financial performance, such as revenue, gross margin and net profit. This information can then be used to identify areas for improvement or focus on particular aspects of the business.
Having a financial system in place can provide insight about your business and its progress. Based on the system’s readings, a professional accountant will be able to analyze data and pinpoint areas where you could cut costs or improve efficiency.
They may even be able to identify opportunities that could help you increase your profits while minimising risk. Such services combined with other strategic measures of success such as quality assurance initiatives and customer feedback surveys can ultimately help you see an increase in performance and grow your business.
5. What should I be budgeting for?
A budget is an important tool that helps you understand where money is being spent and how much needs to be saved in order to cover potential costs down the line. An accountant will provide advice on setting up a budget that works best for your unique business needs.
A budget doesn’t just provide you with a monetary snapshot at any moment, but also allows you to plan long-term while staying within your means. It’s important that all of the aspects of your budget are taken into consideration when creating it: income, taxes, payroll, and other bills must all be accounted for in order to make sure your finances remain balanced.
6. What strategies should I use to increase profitability?
Profits are the lifeblood of any business, so having a solid strategy in place to increase your bottom line is essential. An accountant can provide you with useful advice on how to remain profitable and competitive by outlining tactics such as identifying areas where costs can be reduced or revenue increased.
Your accountant or business planner may suggest strategies such as streamlining operations, investing in marketing initiatives, expanding customer base, introducing new products and services, conducting market research or partnering with other businesses. Strategies such as these will not only help with profitability but also reinforce your brand’s reputation and sustainability over time.
7. How should I structure my business?
The structure of your business is a critical factor in its success. Your accountant can provide guidance on the best set-up for your company, which may include selecting a legal entity such as an Limited Company, Partnership or Sole Proprietorship.
Your accountant will also be able to advise on any additional steps you should take such as creating contracts, establishing business partnerships and setting up a retirement plan. Structuring your business correctly from the start can help you save time, money and stress in the long run.
Conclusion
As a business owner, it’s important to understand the key questions to ask your accountant and have an overall financial plan in place. An experienced professional can provide invaluable insight into areas such as tax obligations, cash flow, budgeting, profits and more so that you can make informed decisions for the future of your business.
Whilst I’m not an accountant, as a business planning specialised, I help business owners structure their business correctly from the start and create strategies for increasing profitability over time. Having these processes in place is essential for long-term success – something every entrepreneur should aspire towards. So if you need help with any of the questions above, please get in touch.
If you want to learn more about business planning, check out my Business Planning 101 course.