When you start with a small business, you want to find areas in which to grow. That way you can prove that you are a viable investment for venture capitalists and other potential stockholders. The numbers can help with that, but you may lack the time to view your income statements. Your employees may also prefer to focus on developing the products or services that you are selling.
Good accounting services will help you turn a profit and identify opportunities by which to increase revenue. You don’t need to hire an in-house accountant or finance expert to organize your balance sheets. An outsourced agency or virtual service can provide specialized services, often at a lower cost. We are less likely to spend time on items that are technically correct but useless for your business strategies.
When you want current financial statements, an accounting service can provide them on a weekly basis. These include balance sheets, income statements, and cash flow statements. Knowing how much cash you need is important because if you run out of money, then your business goes under.
We recommend that you receive more than reports, however, because understanding the data is more important. This is a basic service that provides a springboard of data that can save you from an IRS audit and have your paperwork in order. You need to go deeper to find the strategies that you need.
Financial forecasting is a step beyond financial reporting. A good accounting service will choose a strategy for looking at the data you have and making projections about revenue and profits for the future, at least within the next six months.
Choose forecasting services that are not overly specific or general, while outlining how your business decisions will affect profit and revenue. Expectations are the priority to give small business owners solid predictions. That way you can evaluate your business health proactively.
Your business needs a bookkeeper when you need a person or program to keep track of virtual transactions. Technically a bookkeeper and an accountant are different positions, but an accountant can direct which bookkeeping to perform and what information to track.
Bookkeeping for small businesses should be straightforward. An expert should close the books and balance credits and debits. Experience has taught us that traditional bookkeepers can waste your time and money easily by covering accrual revenue and other useless tasks. Virtual bookkeepers can help you by doing specific serves and only those.
A Chief Financial Officer or CFO is a person that will manage your accounts and finances and using the data to make recommendations for business strategies. They often will work to convince the CEO, business owner, or board of directors about where to cut costs and make investments.
Many in-house CFOS are too expensive for a small business to hire; they can demand salaries at a minimum of $250,00 year for full-time work. Even if you have the budget, a common CFO mistake is that they get technical with explaining the reports.
Let DeepSky Optimize Your Business Operations
DeepSky has all the virtual services you need to help grow your business. Our Virtual CFOS will provide specialized assistance and will serve as your Financial WingmanTM.
Contact us today to get started. We’ll increase your peace of mind for the long term, as well as streamline your cash flow.