Many business owners struggle with financial planning, but good planning is essential for success in the business world. If you provide accounting services to small-business owners, you need to be able to give advice about setting up small-business accounting systems and using them to track income and expenses. Helping your clients with their financial planning efforts will help you build a positive reputation in the accounting field, and your clients will have an easier time determining if their businesses are profitable.
Your clients may benefit from the use of small-business accounting software, so be prepared to suggest software packages that fit their needs. QuickBooks is one of the most popular programs, but some of your clients may fare just as well with Microsoft Excel. Once you make a recommendation, be available to answer questions or assist with software setup. If you assist your clients with the setup process, you can give tips about financial planning and set up efficient accounting systems right from the beginning.
Taxes are always a concern for small-business owners, so be prepared to explain how clients can legally limit their tax liability. Proper financial planning can help business owners avoid unnecessary taxes and make their companies more profitable, so giving this type of advice can increase revenues for your accounting firm. Teach your clients how to deduct ordinary business expenses from their tax returns, or help people determine the best way to set up their businesses if they want to decrease their tax burdens. If you follow these tips, you will have an easier time assisting clients with their tax questions at the end of the year.
Many business owners make the mistake of avoiding financial planning issues until it is time to file taxes or apply for a business loan. This makes it difficult to determine if a business is making or losing money. One of the best tips you can give your clients is to keep up with financial planning activities throughout the year. Teach them how to prepare monthly income reports, track expenses, and determine their profitability. This type of financial planning will reduce stress at tax time and make it easier to identify areas of opportunity in each business. When your clients keep up with their finances, you will also have an easier time preparing accounting reports and giving advice based on their business financials.
Working with small-business owners is a great opportunity for accountants, but you must know how to keep them on track throughout the year. Help your clients set up accounting systems, track income and expenses, and learn how to identify the financial issues affecting their businesses. If they follow your financial planning tips, you will find it easier to build positive working relationships and provide targeted advice to each client.
(Photo courtesy of freedigitalphotos.net)
Become a member to take advantage of more features, like commenting and voting.
Register or sign in today!