by Karen Stern
While online financial reporting software and other digital advancements have made day-to-day accounting easier for smaller businesses, regularly reaching out to your CPA or accountant can help ensure growth. Many businesses wait until they need an accountant to consult with one even though there are many reasons to get in touch proactively year-round.
Xero, a small-business accounting software developer, surveyed a group of accountants and found that these are the most common mistakes business owners make when it comes to their finances:
• Talking with their accountants only during tax time
• Not fully understanding their tax obligations
• Not having real-time insight into their finances (i.e., not keeping financial records up to date)
• Neglecting to set up a cash flow forecast
• Not linking their financials to business goals
In the survey, 44% of the accountants polled indicated small-business owners should be in touch with their financial advisers at least once a month, while 21% of the survey respondents replied that it should be once a week. This year-round constructive communication can help you manage tax liability, optimize deductions, maximize tax planning, and strategize for growth. It can also lead to discovering overlooked deductions that software alone would otherwise miss.
Relying solely on one method of accounting can let important details fall through the cracks. Just like technology can help ease the pain of daily accounting, regularly consulting a CPA or other accountant can ensure your software is doing its job and your company is on track to grow and succeed.
Karen Stern (314-983-1204 or kstern@bswllc.com) is partner in charge of BSW Small Business Services, which provides small business tax
and accounting services.
Submitted 10 years 54 days ago