Drowning in paperwork? Confused by the new tax laws? Stressed out about staying compliant? Whether you’ve been in business for decades or are just getting started, working with a small business CPA can help reduce those small business headaches.
What does a professional accountant do?
Accountants are much more than people in green visors punching numbers into a calculator all day. For a small business, accountants can reduce an owner’s workload by taking on a variety of financial tasks, providing important operational insights, and staying compliant with multiple deadlines.
Accurate tracking of financial data
Your small business generates tons of data each day, and accountants pride themselves on accurately tracking and compiling that data to tell your financial story. It begins by setting up systems to stay organized and make sure nothing is missed. After the month has ended the period is closed, freezing all transactions.
Accountants will then use that data to compile financial statements for the period, usually consisting of a balance sheet, profit & loss statement, and cash flow statement. A general ledger detailing the debits and credits of each transaction is also created. These reports can be hard for small business owners to read and decipher. A good accountant will also specialize in financial analysis, interpreting your data and connecting the dots to help you solve problems and make informed decisions.
Every business has different reporting requirements based on their location, industry, tax status, and more. Do you know all of yours? A business must maintain compliance, and accountants can help, staying up to date on the latest changes and deadlines to help you report on time, including worker’s compensation, bank covenants, and franchise reports.
Tax Preparation & Filing
Accountants also handle all kinds of tax filings for small businesses. These include sales & use tax, payroll tax, and income tax for individuals and businesses. Relying on their expertise can save owners thousands of dollars, and keep them from making expensive self-prepared mistakes. Don’t forget about all of Minnesota’s special business taxes too, including Alcoholic Beverage, MinnesotaCare, and S Corporation tax.
How Small Businesses Benefit from Working With a Local Accountant
Improve Financial Stability
Standardized systems and timely, accurate financial statements mean your small business always knows where it stands. Expert advice means you’re making informed decisions leading your company forward.
Identify Problem Areas Early
Don’t wait until something blows up and you’re out of business. Financial statement red flags, along with insights from your accountant, will alert you to problems as they happen.
Identify Opportunities for Growth
Without an accurate profit and loss statement with appropriate revenue streams and cost of goods sold, how do you know which products and services are making you the most money? Should you raise certain prices or lower certain costs? Accountants can provide this information and more to help you make operational adjustments and increase revenue.
Understand Local Market Challenges and Opportunities
By working with a local professional accountant, you have a partner who knows the strategies specific to your jurisdiction, how you’re performing against their other clients (and your competition), and a network of other trusted, local professionals you may need to call upon one day.
Understand Local and State Regulations
The Federal law changes are often big news, but it’s the small local changes that can cause the biggest headaches. Trust an accountant to inform you when local regulations change, and how you need to change to stay in compliance.
Build Personal Relationships
Running a small business can be lonely and exhausting, especially when you have no one to turn to with the hard questions. A professional accountant is there for you, listening to your problems, advising solutions, and watching over your financial well-being. Have confidence your solution is only a phone call away.
Behind every good business is a good accountant.
Working with Haworth & Company, Ltd.
You need a trusted advisor and professional accountant on your team. At Haworth & Company, we specialize in offering small businesses in the Twin Cities and surrounding communities with the services they need at a price they can afford. Our small business accounting program provides the systematic organization, proactive guidance, and tax expertise owners need. Working with us helps them to understand their business, improve operations, and most importantly, sleep well knowing they’re not alone.