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Leveraging the Expertise of an Accounting and Advisory Firm to Support and Optimize Your Accounting System
This fourth article in our series outlines the benefits of partnering with an external advisory firm in optimizing your business finances. We look at the comprehensive services offered by outsourced accounting specialists and how they can support your in-house teams and processes toward ideal results throughout the work year. Bookkeeping is an essential aspect of […]Read more
Lagerquist’s third part of an in-depth blog series explores how partnering with a reliable external accounting and advisory firm can help your company avoid five of the biggest pitfalls faced by businesses. External accounting specialists provide extensive real-world experience that help companies navigate the most significant financial challenges with minimal guesswork.Read more
The second article in our original series looks at how hiring an external accounting and advisory firm can help businesses throughout the work year. By hiring an experienced accounting firm like Lagerquist Accounting and Advisory, you can look forward to structured processes that optimize your organization’s financial health and growth.Read more
Your Accounting and Advisory Firm Can Help You Avoid These 5 Major Pitfalls
Posted by Lagerquist Accounting & Advisory
This third article of our in-depth blog series explores how partnering with a reliable external accounting and advisory firm can help your company avoid five of the biggest pitfalls faced by businesses. External accounting specialists provide extensive real-world experience that helps companies navigate the most significant financial challenges with minimal guesswork.
Additionally, your designated advisory firm can help improve the overall efficiency of in-house accounting teams. An outsourced accountant can identify the best opportunities and practices to drive optimal results through a combination of analytical guidance and advanced strategic solutions.
Prevent Cash Flow Issues
Cash flow is an essential aspect of running an organization. As cited in a market research report by SCORE/Counselors to America’s Small Business, an estimated 82% of businesses fail due to poor cash flow practices. Some possible reasons for unsuccessful budget management include the lack of awareness of credit scores/risk scoring, late payments, and inefficient bookkeeping.
Hiring an external accounting expert provides your company with actionable insights on your expenditures and the most effective means of optimizing a budget. For example, your accountant will keep a transparent log of payroll tax preparations, bank reconciliations, and periodic accounting reviews to ensure that your company operates in the green throughout the fiscal year.
Avoid Missing the Signs of Poor Business Performance
Your company’s accounts may show early signs of poor business performance – but only if you know what to look for. A lack of accounting expertise might keep you unaware of negative financial trends until a situation escalates in severity.
Talent and resource deficiencies alongside poor budget allocations are among the many issues that can lead to undesirable business outcomes, and the sooner their impact is detected, the more effectively they can be mitigated. An outsourced advisory firm can help you set up an effective accounting system that optimizes your budget planning and expenditure. Through highly visible workflows and accounts, you can better control your operations. Your team will gain access to valuable financial analyses from a reliable accounting expert.
Additionally, you might receive concise and detailed accounting reports to guide your organizational decisions, picking up on the slightest signs of financial concerns before they become major liabilities.
Prevent Poor Company Purchases
Some companies may rely heavily on property, plant, and equipment (PP&E) for their operational needs. However, these items belong to the category of tangible long-term assets, which makes liquidity a challenge. A company with minimal accounting expertise might make less cost-effective PP&E purchases due to a lack of awareness of the range of financing options available.
With an external accounting and advisory firm, you can discover the latest purchasing trends, price points, and competitive analysis to optimize management according to your organizational needs. The same savvy budgeting process applies to personnel recruitment, where accountants can provide you with details on the latest hiring rates and employee non-negotiables.
Additionally, your outsourced accountant can help you scale your budgets and maximize investments based on your organizational goals across scenarios such as mergers and acquisitions and governmental contracting.
Reshape Unsuitable Business Structures
Your accounting structure serves as the foundation of your company’s long-term success. An unsuitable system results in high employee turnover, poor revenue, and fewer growth opportunities. In many cases, these issues stem from the absence of accounting direction that a company needs to drive business priorities critical for success.
Market surveys show that 23% of businesses fail due to a poorly hired team that leads to incompetency at work, while 13% of small businesses collapse due to the lack of a focused budget. A trusted accounting and advisory firm minimizes the risk of poor organizational performance by establishing a suitable business structure based on a sound strategic analysis of your company goals and vision.
Avoid Compliance Issues
Business owners juggle multiple tasks and responsibilities. This makes it challenging for them to keep up with the latest tax and financial compliance rules necessary to run a company. Partnering with a reliable accounting specialist provides you with the support and peace of mind to deal with compliance requirements for any industry.
A shortage of regular account reviews may result in costly mistakes and legal complications due to management oversights. Potential compliance issues may include underpaid taxes, expiring provisions from deductions/credits, and poorly timed filings. These preventable mistakes may eventually affect your professional reputation and your company’s credibility.
An outsourced accountant can support you with comprehensive compliance services beyond planning and preparation for tax season. For example, you can benefit from the accounting expertise in optimizing decisions across bonus distribution, equipment management, and the establishment of retirement accounts.
Lagerquist Accounting & Advisory – Your Ally In Business Growth
Lagerquist is an award-winning accounting and advisory firm that offers complete CPA services according to your business needs. Our comprehensive range of services spans four key areas that include outsourced CFOs, professional bookkeeping, tax and compliance, and customized accounting systems.
We believe in sharing the latest accounting tools and knowledge with every client, driving their processes and growth with a focus on providing the specialized accounting support you need throughout your business.
The next installment of our series focuses on why and how you can leverage the services of an accounting and advisory firm to support and enhance your accounting systems.
Contact Lagerquist Accounting & Advisory for more information on how you can optimize your business operations today!
Lagerquist Accounting Blog
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