JCM Accounting & Consulting

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7 Ways an Accounting Consultant Can Help a Business Owner

Business owners and accounting consultants go together like avocado and toast. Small businesses in particular benefit greatly from the partnership with an accounting consultant who has strong analytical skills and understands how a business should handle its financial accounting for impeccable regulatory reporting.

Unless you have extensive knowledge of accounting or are familiar with the accounting systems used by experienced professionals, hiring an accounting consultant is always a good idea for your business, because accounting is not only about taxes and bookkeeping! Take a look at all the ways an accounting consultant can help your business, and you’ll find it easier to decide whether it is time to consider a long-term collaboration with an accounting firm.

Business set-up

Accounting consultants can be there for your business from the very beginning to provide advisory services and explain the basic accounting principles. Setting up a company is never an easy endeavor, especially if you are not familiar with the business environment and accounting functions. Your accountant can help you choose the correct business structure (LLC, partnership, sole proprietorship, etc.) while setting up the correct accounting processes for your business. Moreover, the accountant can provide an informed financial analysis to help you create a strong business plan, recommend the best business bank account that suits your company’s financial goals, and indicate the type of accounting software you should use for your business model.

Document review

Businesses have to handle a large volume of documents, especially if they are working with various business clients and conduct their operations based on contracts. Having an accounting consultant always ready to review your documents and agreements will help you make the right decisions for your enterprise and avoid negative legal and financial consequences arising from poor cash management and financial transactions. Whenever you enter an agreement with tax or complex accounting issues, have an accountant review the document and identify any provisions that may impact your company’s financial prospects and insurance.

Day-to-day operations

Having an accounting consultant by your side while you conduct your daily operations will help you make the best financial decisions for your business. Accountants can oversee the company payroll and payment processes, create and explain financial statements, and provide monthly financial documents to provide accurate information regarding the financial health of your business. Collaborating with an accountant consultant makes it easier for you to track expenses during your daily business activities and have a clear image of the tax payments required for the year. They can help you save money by avoiding accounting mistakes such as missed tax deadlines or overdrafts to bank accounts. Furthermore, an accountant’s advice and organizational skills will make it easier to identify to whom and when you should send your W2 and 1099 forms and how to close out your books at the end of the year.

Business growth

If you decide to add a financial professional with experience in accounting to your financial team, you will always benefit from valuable advice regarding the growth process of your enterprise and have a clear idea of the accounting procedures required to keep your business healthy. Already familiar with every income statement and balance sheet your business has filed, your accountant can help you find business solutions for the growth of your company and improve your company executive management. Furthermore, accounting consultants can provide advice based on your business’ cash flow patterns, inventory management, and business financing and create financial forecasts to cover all potential risks and identify every opportunity for growth available.

Audit and regulatory compliance

Business owners who work with an accounting team from the start and base business decisions on their advice often manage to avoid getting audited by the IRS and have no issues with their internal controls. They always meet their tax filing and form submission deadlines and know how to improve their business resilience in terms of regulatory compliance. However, if financial audits are required for your business, an accounting consultant can help you prepare and facilitate the entire process for your peace of mind. Furthermore, your accountant will make sure your documents and data are organized and ready for an internal audit without delay as per the auditor’s request.

working in accounting

Loan approval

Whether you are considering taking out a loan to set up your business or need a capital infusion to finance an ambitious marketing plan and grow your company, having an accountant who has practical business experience and understands your enterprise’s financial health is always beneficial. An accountant consultant can help gather the information and data necessary for a loan and prepare the necessary financial reports for the bank.

Smooth business transitions

Working with a professional who provides accounting consulting services is the best way to ensure smooth transitions for your business. Whether you are considering mergers, acquisitions, or even the sale of your business, their accounting-specialized skills can help you access accurate and clear accounting reports to make sure your enterprise can face the challenges ahead and prevent any accounting mistakes. Your accounting consultant can also provide advice regarding any succession plans you might have for your company, especially if you are looking to pass your business down to your children, grandchildren, family members, or a non-governmental organization. Accountants can play an instrumental role in shaping the future of your business while providing strategies to protect your estate from taxes that can significantly impact your business assets.


Protect the financial health of your business

The benefits of working with an accounting consultant extend beyond taxes and bookkeeping. Accounting consultants can help you achieve your business goals and make informed business decisions based on up-to-date data. They can provide advice on how to keep personal and business expenses separate and facilitate your relationships with various financial organizations, as well as help you understand the differences between independent contractors and employees from the IRS’ perspective.

Whether you choose to hire an accounting consultant part-time or place all your financial activities in their hands, your business will always benefit from working with accounting consultants who can provide more than tax services and payroll processing. Moreover, delegating accounting tasks to an accountant saves you time and helps you focus more on your business operations and increase your marketing efforts to reach your target customers and grow your customer base.