Accountability: Maximize your relationship with your CPA
By Gail Kinsella
Sure, times are tough and it can be confusing in terms of where to turn for advice. Why not start with your CPA?
As a business owner or investor you realize that the services provided by your accountant are a valuable resource, but are you maximizing that relationship? Your accountant can help you address current and potential future challenges; provide a structured plan for growth or succession; and help you achieve restored confidence in your financial future.
Many of us think about CPAs and taxes as a unit. Annual tax compliance should be a fairly routine process, with the heavy lifting accomplished during the planning discussions. By failing to plan, the result is often failure - or flounder. The term "planning" indicates something done in advance, not after year end so be sure to keep the calendar in mind. Budgets, projections and the achievement thereof should also be part of the discussion.
CPAs can also provide analysis and insight as to ways to improve the bottom line. In some cases, growing the bottom line doesn't require greater revenue streams, but improved efficiency. Perhaps your bottom line really speaks to quality of life. Your CPA can help you navigate the path to enhancing your bottom line whether it is through budget analysis or helping you find a way to leverage your knowledge and current business investment.
Establishing benchmarks and understanding which metrics really drive successful analysis are important. Your CPA can provide support as you determine and measure trends, industry norms and internal pacts.
At some point in time we all need to confront and deal with the "S" word. Succession. For each of us running a successful business, the day-to-day has become an ingrained routine. Your CPA can help you identify ways to keep your business going - into the future. Current employees, potential investors or an outright sale may all be considerations. What is the financial impact? How do you maintain financial security? Talk with your CPA; they can assist with much more than figuring the tax liability of a sale.
Key members of management may be the long term solution for succession and certainly drive the bottom line on a current basis. Attracting and retaining a talented workforce requires an understanding of employee benefit options and the related costs. Your CPA is highly versed in these matters and can provide not only counsel to owners, but explanation to employees as well.
Perhaps your CPA is an auditor and he or she speaks of internal controls. Pay close attention and ask questions. Learn how to set up the best safeguards you can in order to protect from possible theft or misappropriation of assets. No one wants to think that a current employee could be dishonest, so think to the future instead.
What if a new employee was performing a task? Would they have the opportunity to re-direct assets to their own benefit? Establishing strong internal controls can also help your company maximize profits.
Begin serious dialogue with your CPA to see how you can maximize the investment in your relationship. You may find it to be the best investment you make this year...for now and the future.