Are you searching for ways to improve the value, growth, and profitability of your business? It may surprise you to learn that one of the most profitable steps you can take is to harness accounting in your company to improve insight and profitability, while ensuring accurate payroll, reporting, and compliance.
For many businesses, the “accounting department” still looks something like this: file cabinets overflowing with paper, bank boxes stacked in a corner, and envelopes or even shoe boxes full of receipts. If that sounds familiar, you may be facing more than just clutter—you’re also facing a real business risk.
Why? Because there are significant tax, employment, and financial issues that require consistent attention throughout the year. Neglecting these can result in costly mistakes, fines, or even the downfall of your business. In today’s fast-paced business environment, relying on QuickBooks or internal staff to stay on top of your accounting, reporting, and tax compliance is not just a risky practice—it’s a recipe for slower growth, missed opportunities, and ultimately, the failure of the business.
However, when your accounting is well structured and internal reporting flows into the decision makers of your organization, you can foresee opportunities and challenges much earlier in the process, and respond in a manner that expands opportunity and the value of your organization. Your business will run more efficiently and profitably, while providing improved products and services. Outsourcing accounting and tax reporting will also save your company a substantial amount of money. And that’s where your experienced accounting partner at Allen Barron, Inc. comes in.
3 Primary Takeaways about How to Harness Accounting in Your Company to Improve Insight and Profitability
- Accounting requires consistent attention and deliberate focus; it is not just a monthly, quarterly, or year-end task. A well-conceived accounting strategy provides consistent management of information to ensure your company remains financially healthy, efficient, and compliant. Accounting systems provide actionable information to aid in decision-making. Neglecting the focus, discipline, and insight of a well-structured accounting system not only generates costly errors and potential exposure but also limits opportunities for business growth, problem-solving, and ultimately success.
- Genuine business growth relies on a strong accounting plan. Accounting systems must be structured, timely, and dynamic – from payroll and budgeting, to receivables, payables, and tax filing.
- Partnering with accounting experts adds value – now and in the future. Are you searching for insight on how to harness accounting in your company to improve insight and profitability? Hiring an experienced external accounting expert or outsourcing your entire accounting and tax compliance process can save your company a substantial amount of money. It also increases the quality of insight and information available to decision makers, while ensuring accurate financial reporting, budgeting, forecasting, and tax compliance. An effective external accounting partnership not only reduces costs and stress but also saves your company a substantial amount of time, money, and costly mistakes.
The Dark Ages of Accounting Past
If your accounting department is little more than a desk or a few workstations covered in stacks of paper, it’s time to consider bringing in professionals who can help streamline your processes and develop a plan that will set your business up for success.
Are you still using a cash accounting system? Unfortunately, many executives cannot read a Profit & Loss Report or other accounting information, let alone understand the benefits of accrual accounting. These benefits include perceiving trends (positive and negative) much earlier in the process, addressing business challenges, and identifying immediate growth opportunities. Accounting, for those still trapped in the “dark ages” mentality, is a necessary evil, not an engine for information, insight, transformation, and growth.
The Importance of a Solid Accounting Plan
Here in San Diego, and across California, Allen Barron Inc. offers expert consulting or outsourced accounting and bookkeeping services tailored to meet your monthly, quarterly, and yearly needs.
An organized and dynamic accounting plan is the backbone of any successful business. Whether you’re a small startup or an established enterprise, having a strategy for managing your business finances will not only save you time but also reduce your risk and boost your growth potential.
Here’s how to harness accounting in your company to improve insight and profitability. Breaking down your accounting tasks by timeframes—monthly, quarterly, and yearly—can help you stay on top of your finances and set you up for long-term success.
Monthly Accounting Tasks
Some tasks are required every month to ensure your business remains on track. Here are some key monthly accounting tasks to consider:
- Payroll Processing: Ensure your employees are paid accurately and on time.
- Payroll Tax Deposits: Stay compliant with local, state, and federal tax requirements.
- Bill Payments & Financial Statements: Keep your cash flow healthy by paying vendors on time and generating regular financial statements.
- Commission Reporting: If your business involves commission-based employees, ensure accurate and timely reporting.
- Credit Card Reconciliation: Make sure your credit card transactions are accurately recorded and reconciled with your bank statements.
By tackling these tasks each month, you’ll stay ahead of potential issues and keep your business running smoothly.
Quarterly Accounting Tasks
Quarterly accounting tasks allow you to take a deeper dive into your financial health and make sure you stay on on track throughout the year. Some key quarterly tasks include:
- Financial Review & Analysis: Look at your financial results to identify trends, assess profitability, and make adjustments as necessary.
- Inventory Management: Regularly review and update inventory levels to ensure you’re not overstocking or understocking.
- Quarterly Tax Payments: Avoid surprises at year-end by making sure you’re staying on top of your estimated tax payments.
These tasks allow you to make any mid-course corrections to your financial strategy and ensure that your business stays on track.
Yearly Accounting Tasks
Yearly tasks are typically the ones most business owners are familiar with—often because they come with deadlines! These tasks are crucial for year-end reporting and tax filings:
- W2s & 1099s: Prepare and distribute W2 forms for employees and 1099 forms for independent contractors.
- W3 & State Reconciliations: Complete year-end reconciliations for federal and state taxes to ensure everything is in order.
- Corporate Tax Returns: File federal and state tax returns accurately and on time.
- Payroll Tax Returns: Submit payroll tax returns to stay compliant with government regulations.
- Budgeting & Forecasting: Establish a budget and forecast for the next year to help guide your financial decisions.
These tasks ensure that you’re not only compliant but also positioned for success in the upcoming year.
Building a Strong Financial Foundation with Expert Support to Harness Accounting in Your Company
Why should you focus on how to harness accounting in your company to improve insight and profitability? While the frequency of accounting and tax compliance tasks may vary, preparing for them is a constant. An experienced, proven accounting team, particularly one with expertise in the local San Diego market and the complexities of business in the State of California, will help you navigate these responsibilities while also identifying opportunities to streamline your processes and improve profitability and success.
Here are some additional services that can help you build a strong foundation for your business:
- Financial Statement Preparation: Get clear, accurate reports that help you understand your business’s financial health.
- Prepaid Expenses Management: Stay on top of prepayments to avoid cash flow issues later.
- Balance Sheets & Cash Flow Statements: Keep track of your assets, liabilities, and liquidity to ensure your business remains financially stable.
- Budgeting & Forecasting: Set realistic financial goals and predict future cash flow with expert guidance.
- Inventory Setup & Management: Implement systems for tracking inventory and ensure it aligns with your financial reports.
- Accounting Policies & Procedures: Develop standardized processes that ensure consistency and compliance.
- QuickBooks® Setup & Training: If you insist on keeping things in-house for the moment, it is still essential to get things set up correctly and ensure timely reporting and compliance. Whether you’re just starting or need advanced training, our team can help you understand how to genuinely harness QuickBooks® to streamline your accounting and bookkeeping tasks.
Is It Time to Offload the Burden of Accounting?
As a business owner, the idea of dealing with administrative tasks like bookkeeping and tax filings might feel overwhelming. But imagine the relief of having experienced professionals who can handle these details for you while you focus on what really matters: growing your business, developing new products, solving problems and challenges, and attracting new customers.
Allen Barron Inc. and Janathan L. Allen, APC, offer a range of services designed to fit the unique needs of San Diego and California businesses. By working with experts who understand the intricacies of local, state, federal, and international tax laws and accounting standards, you’ll gain peace of mind knowing that your finances are in good hands.
Whether you need monthly, quarterly, or yearly support, dedicated accounting professionals will work with you to create a plan that fits your needs and helps your business thrive. You’ll save time, reduce stress, and avoid the costly mistakes that can arise from a disorganized accounting system.
So, if you’re still managing your finances with a shoebox of receipts and a cluttered desk, it’s time to come out of the dark ages and make the change. Take control of your business and financial future today with the integrated accounting, tax, legal, and business advisory experts who can help guide you toward growth, profitability, and success.
You’ll not only have more time to actively manage and improve your business, but you will also increase the value of your company and its attractiveness in any future round of investment, sale, merger, acquisition, or joint venture.
Accounting Isn’t a Chore, It’s the Backbone of Your Business
The difference between a successful, thriving business and one that struggles often comes down to how well its accounting and finances are managed, as well as the insights provided by a well-conceived accounting system. Don’t let outdated accounting practices hold your business back. Partner with an expert who can help you build a solid financial foundation, ensuring that you’re prepared for any challenges that come your way, with the information not only to respond, but to excel and grow.
We invite you to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.
