Small Business Finances: What You Should Review With Your Accountant
You can tell a lot about your business when you look at the financial documents. It’s important to take stock of your small business finances regularly. By examining your financials in detail, you can improve your cash flow and profitability, but you need to know what to analyze and how to apply that. This is where your accountant comes in. Your CPA is much more than a bookkeeper. Talk to your accountant about these five financial indicators to get a good idea of where you can improve your business:
Past due invoices can be a big concern. Your accountant can help you find strategies to make your collection process smoother and encourage quicker payments.
P&L and Balance Sheets
As a small business owner, you probably know that the P&L and balance sheets are a key indicator of how healthy your business is. You accountant can give you even more insight into what those numbers mean and any pitfalls your business may face.
Cash Flow Statement
The P&L doesn’t tell you when cash hits your bank account. Your cash flow statement can help you identify issues and find solutions when cash flow gets slow.
Your Cash Conversion Cycle
If you maintain inventory, it’s important to know the conversion cycle to maintain a healthy cash flow position. Examine this document with your accountant to understand this document and use it to help your business succeed.
Your Forecast Projections
By comparing your financial documents with your forecast projections, you can determine how well you’re meeting your goals and how your business is doing overall.
Using good accounting software can make collaborating with your accountant much easier. You can share reports and get insights from your accountant quicker.
At Smart Capital Lending Group, we have funding resources for your business to help you grow and expand. Talk to us to get started by calling 407-202-8494 or filling out our contact form.