An accountant deals with all kinds of financial transactions, statements, tax returns and assessment of expense or cost and revenue. It is the job of the accountant to ensure that all financial matters of the company are in order. However, the job profile of an account is not limited to only attend to the financial processes.
Many companies include accountants in various types of decision making due to their financial expertise. An account is often better aware of the financial health of the company than the owner or the entire senior management. It is always wiser to use the expertise of an account in Palm Harbor, Florida, to facilitate growth and expansion of any type of business.
Accounting is Retrospective, Financial Planning is Proactive
Accountants ensure timely recordkeeping, process payments and also assess revenues, file tax returns and generate a financial statement, which could be fortnightly or monthly but is usually quarterly and in some cases annually as well. There can be different financial statements from time to time covering distinct periods. All such exercises are retrospective. The assessments can offer a more lucid understanding but only in hindsight. The details will tell a story of how a business has fared in the last month, three months, six months or a year. Extensive assessments will tell the story of how a company has grown from its inception. These financial assessments are essentially, regardless of being retrospective, but they do not shed any light on the near or distant future. They can help in the identification of trends but there is no insight as to how a business can grow.
Financial planning is a proactive process. It is an imperative exercise for all companies, regardless of the size and nature of business. An accountant can play a pivotal role in financial planning. First, the accountant has the numbers that actually matter. No one is better aware of the financial situation of a company, including both liabilities and assets. An accountant is not swayed by emotions or passionate pursuits so a hard and cold assessment of numbers is always going to be more effective during financial planning.
Second, an accountant can conduct a breakeven analysis, partially for some operations or holistically to have a comprehensive view of everything a company does. This breakeven analysis is often carried out in retrospect. Accountants can perform such an analysis proactively.
If the right parameters are chosen and the management lays out the factors that will influence the costs and revenues, then an account can do a breakeven analysis and highlight how and whether or not the planned expansion or operation will be truly profitable.
Financial planning is not always about profit or expansion. It is also about doing what is right and will be viable. The present realities must be factored in, historical data should be borne in mind and a pragmatic outlook should be considered for the near future. An accountant can be the pragmatic voice in the exercise of financial planning. A proactive exercise can often be uprooted from reality and pursuits are not always sustainable. If the objective is to clock real growth and to sustain the expansion, then an accountant can chip in with valuable inputs.
Financial Strategies beyond the Obvious
Every business owner or entrepreneur is somewhat aware of the common financial strategies. All owners or those in senior management are familiar with the usual challenges. But only a few are actually specialized enough in accounting and finance to know of tactics that are more effective but less known. An accountant can come up with financial remedies that others in the decision making body may not conceive. For instance, something as simple as overdraft or accessing the credit available to a company can become complicated. Mismanaging such facilities is not uncommon. An accountant can be entrusted with planning the utilization of such facilities and to ensure that the company does not run into financial rough waters.
A proficient accountant in Palm Harbor, FL, can assist the senior management to take astute decisions regarding various aspects of the company. From wages to setting prices of products, incentives to cutting costs, keeping recurring expenses in check and maximizing profits by expediting collections, using systems that can make financial transactions more efficient and exploring available financial aid to fund growth and expansion. Some industries can take advantage of rebates granted by local, state or federal government. Some industries can capitalize on new laws pertaining to finances or other aspects in the sector. It is not rare for business owners and senior managements to be oblivious of such developments. It is not unusual for accountants to be abreast of such changes and they can hence be able advisors at crucial junctures.
Reliable Growth and Sustainable Expansion
An accountant in Palm Harbor, Florida, is aware of the numbers relevant for an industry. Not only is the professional an expert at dealing with capital, recurring expenditure, financial assets, revenues, liabilities and potential growth in profit or probable loss but also acquainted with the numbers for other companies in the niche. Accountants can run back calculations to ascertain the nature of profits other organizations in the sector are churning in. Assessments of price points, anticipating changes in revenue and hence profit, studying trends to identify potential slowdown and promising opportunities will lead to reliable growth and sustainable expansion. Any expansion should be planned thoroughly and it should be sustainable. All companies grow and shrink from time to time. Growth that is sustainable is the only transformation that matters.
An accountant can study opportunities for growth or expansion strictly from the perspective of finance. Any expansion that does not increase profit is basically futile. An accountant can also plan progression and succession of a business so the growth and expansion do not get hit due to a lack of a contingency policy. Accountants can help attain lucidity in many aspects of how a business is operated. This clarity is quintessential for sustainable expansion and actual growth in any industry.