When you run a small business, you need to understand every aspect of entrepreneurship, including maintaining your accounts. After all, you can’t keep your business going without money. And unless you know exactly how much you have at the end of the week, month or year, depending on your income and outflow cycle, you’re not going to know how much you can put back into your business. So here are some questions to ask your accountant to keep your business growing:
- Profits: How much profit is your business making on a monthly/yearly basis? Sometimes, you may get caught up in the day-to-day running of your business, but it’s good to step back and look at the big picture to figure out how well your business is actually doing.
- Loans: If you’ve taken any loans to set up or grow your business or if you have a mortgage on your offices, it’s good to keep track of how much you have already paid and how much is still left for you to pay. Should you change your monthly payments based on how much your business is making? Your accountant can help you to decide.
- Growth: Maybe you’re making some plans to grow your business. You might want to move to a better location or start up a new branch. Maybe you just want to hire more people. Consult your accountant first to make sure you are in good enough shape to do this.
- Comparative Study: Let’s say you’re producing more than one product. Maybe you have a whole line of products with different features and different costs. Rather than going on introducing new things all the time, you might first want to consult your accountant to find out where your business is making the most money and focus on that.
- Cutbacks: Maybe you think that you’re overspending in some areas within your business and you need to make some cutbacks. First, consult your accountant to get the numbers right and then decide whether you’re cutting back in the right places.
Contact us to learn more about which situations call for the expertise of an accountant.