As an entrepreneur, ambition is nothing short of an essential asset. While your team may encounter difficulties on the journey to success, your passion and razor-sharp focus will help you surmount any obstacle. However, any growth-oriented small business owner knows that the drive to succeed must be supported by real-world knowledge and strategy — and financial management tops the list of these practical skills. 

There are game-changing benefits to having a solid grasp of both the day-to-day and annual financial proceedings within a small business — and with the right resources, this autonomy is within your reach. This article sets the stage for our six-part series on how CPAs can help small businesses as outsourced financial services providers. Here, we’ll delve into the all-encompassing importance of ongoing financial management within any small business or organization. 

Financial management: the heart of your business

If a business sets its sights on future success, then close attention to finances should be at its core. Financial management is involved in every aspect of commercial operations:

• Documenting cash flow: The first step to allocating any resource is knowing what you have on hand. A consistent understanding of the finances entering and leaving your company aids your entire team in making other important decisions. 

• Measuring business performance: There are few better ways to understand the trajectory of your business than how it’s performing financially over time. Measure growth — or setbacks — in any key area by relying on insights gleaned through concrete financial data. 

• Building your team: Do you need to bring on new team members to build out your capabilities as an organization — and can you afford to do so? Financial management is essential to retaining current employees and building the team of the future. 

• Networking and professional connections: Other businesses within your industry are more likely to partner with you and help you cultivate a robust network if they see that you are performing well financially. Maintain control of your professional image by staying on top of your organization’s finances. 

• Nurturing customer relationships: Don’t fall into the trap of underestimating your customers — they can tell how much effort you’re putting into improving their experiences. Customer relationship management is bolstered by financial stability and control. 
• Developing new milestones: Finally, your financial state will, at any given point in time, impact the short and long-term goals of your organization. Having financial foresight will enable you to develop plans that lead to even more growth and new opportunities.

How CPAs help small business owners

The stakes that dictate the importance of financial knowledge and strategy are steep, and it’s unrealistic to expect any CEO to take on the complexities of financial management alone. Outsourced CPAs are a fantastic resource that can help you understand and take care of your business’s finances year-round. 

Proven financial expertise 

Each CPA that works at a reputable firm holds proven and measurable expertise in the world of accounting and finance. Prospective CPAs who seek licensure in Maryland must complete rigorous legally-mandated requirements before starting their careers. This includes passing all four sections of the notoriously difficult CPA exam, completing “Professional Ethics: The AICPA’s Comprehensive Course,” and working in the public accounting sector — among other tasks. 

Good moral standing 

Along with academic achievement and professional experience, CPAs only secure their positions if they have a reputation for good moral character. Additionally, in order to maintain their licenses, all CPAs follow guidelines presented in the American Institute of CPAs’ Code of Professional Conduct. This list outlines the responsibilities of the role to the public interest, stresses the importance of adhering to fieldwork and reporting standards, and promotes integrity, objectivity, and other values. 

A wide variety of financial management skills 

Upon receiving their license, each CPA can attest to their professional skill set and robust financial knowledge — making them the premier choice to bring on board your small business as an outsourced financial service provider. A CPA will equip you with a factual analysis of your business’s financial state by looking objectively at the whole picture. They can simplify and manage your processes in several important areas: 

• Bookkeeping 
• Accounting
• Tax planning
• Consulting 

Get all of your questions about these fundamental functions answered at once with a financial expert with years of growth-oriented experience. 

Master financial management with BradyRenner 

The team of qualified CPAs at BradyRenner cultivates financial wellness for small businesses and their owners in and around the Baltimore-Washington region. We know the sheer amount of work that goes into the day-to-day operations of a new business, and we are committed to lending our financial management expertise to CEOs who already have their hands full. By communicating, staying approachable to our client base, and maintaining high availability for any and all questions your team may have, we maintain our commitment to building client relationships and prioritizing their long-term financial success.

Contact BradyRenner for more information about how our outsourced CPA services can benefit small businesses just like yours. In the next article in this series, we’ll delve further into the connections between finances and every other facet of running a small business.