Used within the production of other products or services, a commodity is a basic good used in commerce that is interchangeable with other goods of the same type. It is common for business owners to consider their company’s bookkeeping as a singular skill and it is often the consensus that one accountant is the same as the next.
This perspective usually comes from the early days of running a business when owners often maintain their own books. It is relatively easy to monitor cash-flow when you do not have employees or multiple expenses. There is less data to process and less compliance to be concerned about. However, as most businesses scale up, so does the complexity of the accounting.
Good accounting pays for itself.
Accounting is a service that starts with good bookkeeping. A good bookkeeper is the end product of excellent training and industry experience gained from working with talented accountants. They fundamentally recognize their work as the basis of every financial decision you make and act as such. A good bookkeeper works in partnership with your tax preparer to ensure you are compliant and mitigating all costs come tax season. They are not just timely in their preparation of your balance sheet, they are in communication with your CPA on costs and profit throughout the year.
Someone can have the software certification but lack the skills to tell the difference between good and bad bookkeeping. (And if they cannot explain the distinction to you, it is a red flag). Moreover, as the business owner, you will not know if you have hired a good bookkeeper until it is time to file a tax return. A good tax preparer is able to tell if your balance sheet is solid, right away. If it is not, fixing bookkeeping mistakes is a sizable, expensive task.
There are ways to minimize costs. Being frugal with your choice of accountant should not be one of them.
If you are concerned about expenses, investing in an excellent accountant is a smart way to control costs. They can have a huge influence on the flow of your business and their work is directly responsible for accurate cash-flow and the tax you pay. You will build your business around the information they provide and therefore, recruiting a sharp accountant or bookkeeper is a smart move.
There are other simple areas to minimize costs. Small changes add up and can improve your cash-flow. As a rule, review your books monthly and pay particular attention to:
-Company meals
-Duplicate or unnecessary apps
-Subscriptions
-Paid content for websites
-Memberships for groups
-Unnecessary equipment service plans
-Unused phone or internet service
We know how important it is to get it right from the beginning.
Nailing the basics is the best way to position yourself for success. It means securing the best bookkeeper, CPA, and tax preparer for your business as it grows (you can read our Nail the Basics blog here) so you are moving in the right direction, sooner rather than later.
At Walker Glantz, your bookkeeper is a CPA or an experienced accountant. The combination of bookkeeping skills and expertise in accounting means we analyze your business from a multi-dimensional, big picture perspective. It means our clients have outstanding management of their finances, from the bookkeeping through the implementation of financial strategy. It means our clients spend less on their accounting because we provide a full suite of services rather than a series of ad hoc tasks. It means we know their business at the deepest level, and it is this attention to detail that can positively change the trajectory of their business.
If you would like to discuss how we can help you, get in touch here.