The world of tax advising comes with awful stereotypes about boring bean counters. However, in the world of small to mid-sized businesses, tax consultants are much more than that. Tax consultants are the resource who will fight for the business when it comes to fiscal responsibility, foreign competition, and government regulation.
So how exactly can you begin reaping more of the value from your tax consultant? Ask them for help with these items:
Making Your Numbers Talk
Crunching numbers and throwing financial reports at a leadership team doesn’t always do a whole lot of good unless there are realistic suggestions for what you should do with the numbers. Much like if your doctor handed you test results with no diagnosis, there’s a lot more to the situation than just what’s written on the paper. Ask your consultant to break down the reports into strengths and weaknesses of your organization, and then ask them to provide ideas for how you can improve those problem areas. Also ask them to provide you with some forecasting figures to review and help make conclusions.
Small businesses today rely heavily on the ability to work with their banking provider for things like getting lines of credit and business loans. Your tax advisor can assist with the process of compiling the various certifications and documentation that a banker will need to grant these items. A trusted advisor will also provide guidance on the amounts being borrowed based on your specific financial situation. Your consultant may also be able to provide insight into the ability and timeline for repaying any new debt, as well as the competency of the loan being requested.
Meeting the requirements of fiscal optimization can be a long and daunting process, that’s where the tax consultant can become your savior. For example, R&D tax credits require a significant amount of documentation gathered throughout the year in order to receive the credit. Although sometimes a tedious process, companies are finding the work throughout the year can be extremely beneficial. Your consultant can be the person who will ensure the required fiscal matters are documented properly and that best practices are in place throughout the year in order to ensure proper filing.
Successful businesses know that they must conduct strategic planning on a regular basis. Strategic planning should happen at least every 3-5 years with a review of the information held annually. A consultant can help to identify planning objectives as well as advise on any possible underlying assumptions. These plans often include things like the projected plans regarding the launching of new products; the production capacities in order to conduct that launch, as well as how these changes will influence customer support.
Setting Your Buying and Selling Prices
If you’ve ever watched Shark Tank on ABC, you know that small business owners have a tendency to overvalue their business. If you are considering selling your company, your tax advisor can help you understand what your sales price truly should be. And you may be thankful for that insight on the buying side because when you turn around to buy another company, your tax advisor can advise how to get financing and use protective clauses within the purchase.
When you consider these surprising ways you can utilize your tax consultant beyond just when it comes tax time, the value of their help becomes tremendous. At Acena Consulting, we want to be the consultants you turn to for business tax assistance and beyond. Contact us today to see how we can add this value to your business.