Professional SpotlightMake the Most of Your Initial CPA Meeting
As most small businesses have routine transactions of cash receipts and cash disbursements, perhaps the assumption is a meeting with a professional CPA or accountant is not needed until the annual tax return deadline approaches. To the contrary, the most prudent way to operate any business from its inception is to sit down with a CPA and/or accountant prior to operating and establish a financial game plan specific to your industry. A significant number of small business owners report operations on a cash basis, meaning tax reporting each year reflects a normal calendar summation of income and expenses. Timing is everything and management of your transactions affects your tax bill.
Your initial meeting with your CPA and/or accountant sets the stage for your financial success, education and reporting for your business. The following points should be discussed in your initial meeting and are essential to creating a solid financial foundation and process for your business operations:
1. Define the financial goals of your business. Simply stating you want to make loads of money is direct and to the point, however for planning purposes that statement is too broad. Develop goals that can be measured within specified time frames (i.e. dollars per year or percentage growth per quarter).
Professional Spotlight
Make the Most of Your Initial CPA Meeting
How to Approach Vendor Payments When All the Cash Is Not There
How to Approach Vendor Payments When All the Cash Is Not There
In challenging economic times, "only the strong will survive" is more than an old adage. The realities of such times for small businesses include the challenge of tight credit options, possible lack of customer loyalty and untimely increases in cost of goods sold, inventory, services or material that reduce at your gross profit. In most cases, the sum of the equation is less cash on hand to cover monthly reoccurring payments to your vendors. What is a small business owner to do? Due to responsibilities, heavy investment, self-esteem, self-respect and confidence - giving up is not the first option. In most cases, the business owner's lifestyle, livelihood and loved ones depend on success and most of all the ability to bring home an income.
Budgets - A Critical Tool For Successful Cash Management
Budgets - A Critical Tool For Successful Cash Management
In the current economic times, the financial success of a small business owner is directly correlated to their ability to manage their expenses. While high gross sales and revenue can give us a feeling of accomplishment, that feeling dissipates quickly at the end of each month, quarter and year if we look back and feel we do not have much left in actual cash or are unable to show how it was spent. One of the best ways to manage and control costs is to develop a budget. An accurate budget provides a business owner with a useful tool to monitor and evaluate predetermined financial goals. It assists in the identification of expenses a business owner may not have otherwise identified, leading to future savings opportunities and improved cash management through the comparison of actual versus budgeted expenses. Budgets also create parameters in the decision making process of business expansion, consolidation and elimination of processes, products and resources. As the healthcare industry's margins continue to shrink overtime, the winners in this game will have mastered expense management and the tools to adjust to the changes.
