Do you ever feel like you're working hard but not getting ahead financially? You may be missing out on valuable tax breaks or struggling to manage your cash flow. The truth is, many businesses need to pay more attention to key financial strategies.
In this blog, we'll explore 10 ways you might be losing out, and how partnering with BELAY’s fractional accounting services can help you unlock your business's full financial potential.
1. Missing Out on Tax Savings
Uncle Sam offers a treasure trove of tax deductions and credits specifically for businesses, but claiming them all requires navigating a complex tax code.
According to the National Small Business Association, businesses that hire accountants are far more likely to uncover these hidden gems, potentially saving them thousands of dollars annually. Think of it as an investment with a phenomenal return — every dollar spent on a professional tax advisor translates into a much larger tax savings for your business.
2. Risk of Costly Errors and Penalties
Filing your taxes wrong can be a recipe for disaster. The American Institute of CPAs warns that businesses without professional accounting support are far more prone to making errors on tax returns.
These mistakes can lead to hefty penalties and interest charges that will quickly drain your cash flow and your sanity. This is why hiring an accountant to ensure your taxes are filed accurately could save you more than thousands of dollars down the road—it can save you peace of mind, too.
3. Struggling with Cash Flow
Ever feel like you're constantly on a financial tightrope? A study by Intuit reveals that businesses with accountants have a clearer picture of their cash flow and are better equipped to maintain a healthy positive balance.
An accountant can help you create a budget, track your income and expenses and identify areas where you can save. Improved cash flow management translates to better liquidity, reduced borrowing costs and ultimately, a more profitable business.
4. Making Decisions Without All the Facts
Every business decision you make has financial implications. Research from the Small Business Administration highlights that businesses with access to professional financial advice, like that provided by accountants, are more likely to make informed strategic choices.
An accountant can analyze financial data, identify trends and forecast future outcomes, giving you the information you need to make sound decisions that push your business forward.
5. Bleeding Money with Poor Budgeting
Without a well-defined budget, your business expenses can easily spiral out of control. A Robert Half Management Resources survey found that businesses with dedicated financial experts, including accountants, are better at creating and sticking to budgets.
An accountant can help you establish realistic spending limits, identify areas for cost-cutting and allocate resources efficiently. The return on investment here is clear: savings on overhead and a more streamlined operation.
6. Scaring Away Investors with Unreliable Reports
Investors rely on accurate and transparent financial information to make informed decisions. A study by Deloitte shows that businesses that invest in professional accounting services benefit from enhanced financial reporting accuracy and transparency.
Clean and reliable financial statements prepared by an accountant can inspire confidence in investors which results in better access to capital, higher valuations and ultimately, more funding to fuel your business growth.
7. Stalling Your Growth Potential
Every business owner dreams of expansion and success.
Research by the Association of Chartered Certified Accountants (ACCA) indicates that businesses with strategic financial planning support, including accountants, are far more likely to achieve sustainable growth. An accountant can help you set realistic goals, develop a growth strategy and track your progress.
With their financial expertise, you can make informed decisions about investments, marketing and staffing, paving the way for long-term success.
8. Leaving Yourself Open to Fraud
Fraud can cripple a business. The Association of Certified Fraud Examiners (ACFE) reports that organizations without proper financial controls, often lacking oversight by accountants, are significantly more vulnerable to fraud and financial misconduct.
An accountant can implement internal controls, monitor financial activity and identify red flags; these preventative measures work to safeguard your assets, protect your reputation, and preserve the value you've built in your business.
9. Drowning in Compliance Costs
Navigating the complex web of regulations can be a time-consuming and expensive hassle. According to a study by Paychex, businesses that utilize accountants for regulatory compliance see a significant reduction in compliance costs compared to those that handle it in-house.
An accountant can ensure your business adheres to all necessary regulations, minimizing administrative expenses, legal fees and potential fines. Think of it as a way to free up your valuable time and resources to focus on what truly matters — growing your business.
10. Strained Your Growth Potential
Transparency and trust are key to fostering strong relationships with investors. Research by the CFA Institute suggests that businesses with transparent and reliable financial reporting, facilitated by accountants, enjoy a more positive rapport with investors and stakeholders.
An accountant can help you communicate your financial health effectively which builds trust and confidence that can translate into capital access at favorable terms, enhanced shareholder value and a stronger overall market position for your business.
With BELAY’s customizable outsourced financial team, we have just the right solution for you and your growing organization.
Whether it’s bookkeeping, controller, CFO services, accounting, full-service payroll or tax support you need — you have an entire outsourced finance department at your fingertips.
Our Accounting Professionals are experts at delivering transparent, streamlined and accurate GAAP-compliant financial information, managing accounts payable and receivable and generating precise monthly and annual reports.
This empowers you to steer your organization efficiently and enhances your ability to analyze operations and make informed decisions for the growth of your organization.
Don’t wait any longer. Hire the next member of your financial team today.