Understanding the importance of accounting can provide a significant advantage for small businesses looking to save costs and streamline operations.
In this article, we’ve broken down the main benefits of accounting for small businesses, as well as delineated several key considerations that you’ll need to know — such as the cost involved.
To help us with this, we’ve partnered with seasoned CPA, Jamie R. Draper, who has offered a specialized perspective on how quality accounting can make a tangible difference for small businesses.
Let’s take a more in-depth look below.
The Multi-Faceted Benefits of Sound Accounting
It goes without saying that accounting is not just about crunching numbers; it serves as an invaluable tool for gauging your business’s overall financial health and — most importantly — future viability.
Here are a few important ways through which accounting can help your business:
- Financial Audits: Conducting an audit provides businesses with a microscopic view of their financial landscape. This means that it can help you identify inefficiencies, ensure compliance, and provide stakeholders with an assurance of the company’s financial integrity.
- Review & Compilation: These processes involve assessing the accuracy of financial statements and compiling them in a way that makes the data more accessible. In turn, this information helps in strategic planning, risk management, and performance evaluation.
- Internal Control Systems: Well-designed internal control mechanisms can protect against fraud and errors, safeguarding a company’s assets and enhancing the reliability of its financial reporting.
Jamie R. Draper emphasizes the importance of these services, stating that: “A well-executed audit, along with regular reviews and a solid internal control system, can serve as the cornerstone for a business’s long-term success,”.
Keep in mind that sound accounting should be incorporated within your initial business’s strategy in order to ensure that it aligns with your future growth (e.g., external investment, scaling, etc.).
Is Hiring an Accountant Expensive?
There’s a persistent myth that accounting is an expensive luxury that many small business owners cannot afford.
While it’s true that all professional services come with a cost, viewing accounting solely as an expense can be an inherently flawed way of thinking. This is because the reality is that effective accounting can actually save you money, and often a lot more than you might expect.
“Many business owners balk at the upfront costs of accounting. What they often don’t realize is how an experienced accountant can find ways to significantly reduce costs, streamline operations, and improve profitability in the long run. We’re talking about savings that can reach into the tens, if not hundreds, of thousands of dollars over several years.”, says Jamie.
All in all, even though the notion that quality accounting is too expensive can often deter privately-owned businesses from making this crucial investment, research shows that the expertise of a seasoned accountant can help uncover hidden costs, optimize tax strategies, and identify opportunities for growth — factors that can more than offset the initial expenditure that’s required.
Final Take: Meet Jamie R. Draper
Jamie R. Draper brings more than just number-crunching skills to the table; he offers the kind of nuanced financial guidance that only comes with decades of experience in public accounting.
Based in Illinois but flexible in serving clients nationwide, Jamie has recently stepped out to start his own firm, which specializes in assisting privately-owned businesses streamline their growth and operations by helping them prepare for audits, consulting on internal controls, and assisting them with their financial statements.
The world of business is fraught with financial challenges, and an expert like Jamie can make navigating those challenges significantly less daunting. It’s specialists like him who help businesses not just survive, but flourish, in today’s complex economic landscape.
For those interested in learning more or discussing your business’s unique financial needs, Jamie R. Draper is just a call or click away. You can schedule a conversation at (708) 217-1965 or delve deeper into his professional background on LinkedIn.
