Giving the Keys to Your CPA – How to Put Your Finances in Their Hands!customonecfo
Revenue and cash flow are the bottom line, make-or-break, issues for any business. You can have a great product or service, but if you aren’t making money your business is not going to last long. Many things go into creating continuing positive cash flow, including the team you rely on to produce your product or render your services. This is especially true of your financial team. Making mistakes in your financial management, taxes, invoicing, accounts receivable, or any other aspects of your business will cost you. It is important to have a team of professionals that you can count on, including a Certified Public Accountant (CPA). Whether you hire a full-time or part-time CPA, they will be there to help you keep your financial house in order.
How the CPA Will Help Manage Your Business
Your CPA is an asset if you use them correctly. They bring valuable expertise and will serve as an adviser and counselor in addition to managing your accounting and financial matters. If you have chosen your CPA wisely, they should also have years of experience working with other firms in your line of business. They will provide the “been there, done that” type of information you need to avoid potential mistakes. As you may be thinking, your CPA can be a partner in your business success, just one that you hire instead of share profits with! Functionally, they will gather data about your operations, analyze it, and report back to you on potential problem areas and ways to improve your operations, finances, or systems. Beyond saving money through these efforts, they can also work with your managers and employees to help them understand where they can be more efficient or effective.
Turning Your Finances Over to Your CPA
Once you reach a certain level of rapport with your CPA, and you find they understand your business and operations, it comes time to let them do their job. While you should never stop being intimately involved in the financial matters of your firm, once you are comfortable with your systems and personnel, it is time to get maximum use from your CPA. This will free your time so that you can work on all the other parts of your business. This is all a matter of trust and your own feelings but allowing your CPA to enact your agreed upon business and financial strategies will give you the best bang for your buck.
How to Hand the CPA the Keys
Once you have worked with your CPA and become comfortable with their advice, systems, and reporting, it is just a matter of letting the CPA take the lead in their area of expertise. They will provide you with the same Profit and Loss, Cash Flow Analyses, Revenue reports, other Financial Statements and their advice – you will just be free from helping them compile the data and analysis. Periodic audits will help to ensure no mistakes occur and give you the peace of mind that your finances are managed correctly.
Your business may not be able to afford, or utilize, a full-time CPA based on size and revenue. If so, explore contract CPA services from firms such as CustomOne CFO & Controllers. These firms can provide you the support and services you need on a part-time or contract basis until you grow into a full-time CPA.