This Is How A Tax Accountant Can Boost Your Business Performance

Our article draws attention to the role tax accountants could have as business advisors. While tax accountants have been known for providing their services by focusing and past events, they can also handle future plans. Things have changed quite a bit, so it is important you understand the current role of a tax accountant and make good use of their expertise to boost your business performance. Tax accountants have a good skill level not only to prepare tax returns but also in financial statements. It’s evident that tax accountants can offer their unique skills for analyzing what’s expected to happen in terms of future financial activity. Our article shows some opportunities a tax accountant in Miami may suggest when they take the role of a financial advisor to boost your business performance.

Boost Your Business Performance

Major Takeaways

  • A tax accountant is an asset to business planning – Some people are not into numbers. If that’s you, a knowledgeable CPA in Miami can be your advisor on business planning and development.
  • They can perform regular economic and financial evaluations– Tax accountants can assess trend lines and other company growth indicators.
  • Tax planning can help you save – A tax accountant can help you find out any deductions you have missed so that you can avoid costly and stressful audits by thorough preparation of tax filings.
  • Add value to your business in several ways – A tax accountant can fill any financial gaps from quarterly tax filings to expensive projections for the upcoming quarter. They can take look at your company’s growth from a financial point of view. They will count unnecessary expenses to improve ROI.
  • Create performance evaluations to get your business back on track – Business owners sometimes assume everything is fine, but a good accountant will analyze the numbers to see if you are heading in a good direction.

Some Things A Tax Accountant Can Do For You

A tax accountant will dig into your company’s accounts (AP) and accounts receivable (AR), market costs, and operations costs. When you have access to the raw data of your resources, costs of production, and deliverables, you can ask your accountant whether using cheaper materials will result in lower quality. They will show you the data so that you can make a solid decision. Tax accountants can also help you with cash flow. Financial modeling and cash flow visualization management are essential parts of year-round accounting planning. This can be used as a financial map for the future. Ask a tax accountant about important timing and processes that can make a difference and prepare you for growth.

Keeping in mind, your accountant isn’t there to make all the decisions for you but to provide the support level you need or another point of view when it’s time for near and mid-year business decision making. You may give them enough time and history to create a five-year plan or projection to use as a road map.

How A Tax Accountant Can Help Your Business Grow

Business owners want to hire someone they can rely on. That’s why is so important, given the challenges your business may face, that you trust your finances to the right accounting professional. Below are some ways in which an accounting professional can assist you:

Set up a budget and review growth options:

You start by setting up goals you would like to accomplish in the following 12 months by using simple charts and graphs to verify that your expectations are on track. It does not necessarily have to be difficult reporting, and you can find out if you performed well in earlier periods. This can assist you with the decision-making process. Within your reports, you will find out how fixed costs such as administration and rent as well as variable costs are compared with sales volume at different periods. This also helps find out whether seasonality, market conditions, and other crucial factors could have an impact.

Assist with the key performance indicators in your business:

First, figure out what’s your business type and then go from there. For example, if you are in retail, you can use inventory turnover and job costing if you are in construction. In manufacturing, you review your direct costs and find out opportunities you can focus on. Every business has key performance indicators – your accountant can advise you on how to set up KPI reporting and help you monitor how it performs over time for better decision making.

Overview cash flow projections:

It is important you generate financial reports with your accounting software to help plan for KPIs. It is essential you understand how growing your product lines, adding employees, and/or a new location can be advantageous and help you to better manage cash flow, and handle any surprises along the way.

Make good use of industry benchmarks to help you assess your numbers:

Understanding what the specific standards for your KPIs are is the starting point. Has the performance improved or is it getting worse? Ask these and other important questions about whether making a specific decision can make a difference in the long run.

Current value of your business:

Whether you are planning to retire soon or not, it’s important you find out about the current value of your business. Planning for the future will be much easier. You can start some level of business succession planning to train the people that will eventually take over the business. Moreover, it will help you maximize the sale value of your business. You should also have tax strategies to lessen your tax liability.

Create an advisory board with the help of your tax accountant:

A business advisory board is a great thing to have. These boards are cost-effective since many small businesses can’t afford to hire some professionals in the legal, financial, operations, and other related functions. Based on the size of your business, you will find the right people to have on your board.

Hire A Tax Accountant In Miami

Business owners want their accountants to advise them at the same level an advisor would. They need someone that will explain to them budgeting, cash flow, and forecasting so that their business can stand out among other businesses.

Legal Disclaimer

Information Only / No Legal Advice Intended

This publication is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or another advisor regarding your specific situation.

To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Always seek advice based on your particular circumstances from an independent advisor. Any disclosure, copying, or distribution of this material, or the taking of any action based on it, is strictly prohibited.

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