A Small Business Owner’s Guide to Financial Management

Published by Matt Brady | September 20, 2022

In part two of this series, we continue our discussion on how small businesses and CPAs can work together to ensure the most effective financial management. According to Cision, nearly all (90%) small businesses outsourced services in 2022. Business leaders cited several reasons for outsourcing, including cutting costs, facilitating business processes, saving time, and gaining access to experts. 

Many processes must be managed in a small business, such as IT, sales, and marketing. However, finances are the lifeblood of each one of them. Without proper finance management, all other aspects of your business are at risk of deteriorating. From staff management to developing products and services, healthy finances make everything possible. 

Complicated DIY Solutions

There are many bookkeeping and accounting software options on the market today. While they’re typically marketed as user-friendly, comprehensive, and minimalist, you may experience headaches if the software doesn’t suit your actual needs. Rather than saving time and money, you might end up wasting it on a tool that isn’t sophisticated or customized enough to provide total small business financial management.

Many small business owners find there are unexpected downsides to DIY accounting solutions, even if they served them well early on. As your business grows, you may notice its needs quickly changing or becoming more complex. This is normal, often prompting a healthy reassessment of your finances and the tools you use. 

It’s often assumed that CPAs merely file taxes for you or help you acquire business loans. Even so, relationships between business owners and CPAs often span many years or even decades. However, small business CPAs also offer outsourced CFO services, give advice, create financial projections, and assist in succession planning. If DIY solutions just aren’t cutting it, consider partnering with BradyRenner’s accessible team of experts in the Maryland area.

Goal-setting and Planning

It’s no secret that running a small business isn’t for the fainthearted. Year after year, national statistics show how hard it is to get a business off the ground and just how easy it is to go under, especially in the first few years. But it’s a myth that running a small business has to be all struggle and uncertainty. With the right financial decisions, a small business can be even more stable and secure than working for someone else as an employee.

Think about the next few months in your business. Now consider how your company will look in five years. It doesn’t matter if your goals and plans aren’t related to finance — money will still play a huge role in how your business develops. Budgeting will be key whether you’re looking to upgrade a physical space, open an online store, grow a social media following, or make a name for yourself through local SEO. Paying staff or contractors, deciding on an advertising strategy, and many other day-to-day decisions will dictate how and when you reach your long-term goals. 

Being proactive with your finance management helps you plan and reach your goals. It also provides consistent peace of mind as you go through the steps required to grow the company you envision. More importantly, taking charge of your financial situation is essential for ensuring compliance with state and industry regulations. Plus, startups can more easily foster healthy relationships with investors and board directors when financial matters run smoothly. A small business CPA can help you bring that far-off vision into practical reality.

Standing on Solid Ground

How much revenue is coming in?

Can you afford to invest in x, y, and z?

How many of your expenditures are unnecessary?

Are you hitting or surpassing your target income goals?

To know where your business stands, you must regularly check in on your finances. In many fast-paced industries, this is easier said than done. Small business owners have a lot on their shoulders and are usually wearing many hats as it is. Especially when you’re busy or your company is growing quickly, it’s too easy to let those financial statements get buried under piles of other paperwork. 

Small business CPAs with years of experience under their belt know these struggles well. Not only do they understand the needs of their business-owning clients, but they understand the challenge of keeping up with finance management in their own business. With the right budgeting in place, you can rest assured that your business stands on solid ground. 

Financial Services Done Right

Finding an excellent small business CPA isn’t just about searching for someone with tax knowledge. A well-rounded financial management firm can dramatically level up your reporting and overall efficiency. And if you’re behind on taxes or struggling financially, a CPA can help you climb out of the hole one step at a time. CPAs guide you in areas such as managing cash flow or inventory, raising revenue, and avoiding tax penalties.

Looking for help with small business financial management? Get in touch with BradyRennert o meet your financial goals faster. We provide customized and comprehensive bookkeeping, accounting, tax planning, and more. With a trained team of financial professionals, you can take your business to the next level of growth and security.

Whether you’re just starting or have been in business for years, getting help with bookkeeping might be the next step to progressing your company. In the next article, we’ll explore whether outsourcing your bookkeeping is the right choice for you.