If you are like most business owners, you are probably feeling like your business just went through 12 months of raging rapids, temporarily capsized, and came out the other end with you wondering where exactly you are. One thing is for sure, we will not be returning to the way things used to be. It is a VUCA (Volatile, Uncertain, Complex, Ambiguous) World out there and it will only intensify. As business leaders, we must stay ahead.
I have been an advisor to growth-minded business owners for 28 years. I have spent my entire career breaking the stereotype of the typical accountant. Accountants are master historians, bean counters. I have heard it all. Preparing reports and tax filings on something that happened months ago is of little use in a fast-paced environment. To me, a month ago feels like an eternity. We must think differently about how we look at our businesses.
For example, consider using other relevant financial reports that allow you to make more informed strategic decisions. While your balance sheet and profit & loss are useful, the importance of forecasting and projecting your company’s performance based on your expectations will help you course-correct much sooner. It will also help you anticipate any cash flow needs, which is the lifeblood of any organization. This type of focus is essential in helping your business thrive.
Another added benefit of looking ahead is with tax planning. This should be done at minimum in the third quarter and ideally throughout the entire year. Do not skimp on tax planning! The cost of your CPA pales in comparison to the tax you might pay. If your CPA is not proactively collaborating with you on tax planning, you should evaluate whether they are the best fit for your growing business. Tax planning allows you to make decisions before year end to help mitigate your tax liability and at a minimum it gives you a “heads up” months before tax filing day. This provides much-needed resources for you to put back into your business.
James N. Chakires, CPA, CVA is managing partner of Apex CPA’s & Consultants, Inc. with offices in Phoenix and Chicago, specializing in serving growth-minded closely held businesses and their owners. Visit us online at www.apexcpas.com and on LinkedIn and Facebook at Apex CPAs & Consultants.
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