1. Budgets and Projections
The
key to achieving the financial goals of your company is accountability.
The first step is the creation of budgets and projections. The second
step is to hold individuals accountable for maintaining those budgets
and achieving the company’s goals. Your accountant should help you
develop budgets and projections, as well as measurable goals to insure
accountability.
2. Fraud Risk Management
Implementation of solid
internal controls is the best way to minimize the risk of fraud,
embezzlement and other improprieties within your company. No one ever
hires employees thinking they will be dishonest; however the reality is
that employee theft results in a significant amount of lost profits for
companies every day, especially in small business. Establishing and
monitoring internal controls for your company will reduce such risks and
help maximize profits for your company.
3. Profitability Enhancement
There are three ways to
enhance a company’s profitability: increase revenues, decrease costs,
and improve the quality of life of the company owners. When people think
of profitability enhancement, they automatically think of a higher
bottom line, but what if your accountant came to you and said “I can
help you increase your gross revenues and possibly reduce the number of
hours you work?” Most people would jump at such an offer. Strategic
business reviews can help you identify the factors that impact your
business profitability.
4. Benchmarking and Results Analysis
You may believe your
business methodology is the best. However, what if you became aware that
your competitors were operating with significantly higher gross
profits, lower operating expenses and higher bottom lines? Most
companies would immediately ask “What are we doing wrong?” Your
accountant can be a key resource for specific benchmarks that apply to
your industry segment and region.
5. Tax Planning
The old adage that “people
don’t plan to fail, they fail to plan” is never truer than when
addressing tax planning. Tax preparation and tax planning are two
distinctly different things. Unfortunately many business owners do not
see their accountant until after the end of their fiscal year. In many 
cases
this is too late to take advantage of tax planning strategies that
could reduce tax liability. In order to be successful, the majority of
tax planning needs to be implemented over the course of the year and
monitored regularly.
cases
this is too late to take advantage of tax planning strategies that
could reduce tax liability. In order to be successful, the majority of
tax planning needs to be implemented over the course of the year and
monitored regularly.
You recognize that your
employees are the primary reason why your company is successful.
Therefore, when the company has the opportunity to financially reward
its employees, create significant write-offs for tax purposes, and
increase overall employee moral, then the employee benefits plan is a
win-win situation. Your accountant can help you evaluate your options.
7. Succession Planning
Most business owners have a
good understanding of how their company operates and are confident they
will continue to be successful for as long as they are at the helm.
However, not all business owners have planned for the company’s
continued success after they retire. Whether your intent is to pass your
business down to your own children, turn over the operations to key
employees or sell your business outright to a third party, you should
begin planning this transition. There are many tax saving strategies
that will ensure your company continues to operate and provide for your
financial security.
Kathi Koenig, CPA
Partner - McGowen, Hurst, Clark & Smith, P.C.
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