As most business owners can attest to, its hard to find time to manage all aspects of your business and its even more true when you outsource a specific service. Now some might say, "why do I need to manage a service that I pay someone else to manage?" Well the truth is, when you're paying for a service, you need to manage your vendor just like you would an employee. It's important that owners know what services they are paying for and if they are truly getting all the services they need.
As a best practice, owners should have a quarterly review with their services vendor (lawyers, accountants, IT groups). This review allows for you to verify and make sure you're getting what you're paying for, as well as for you and the vendor to make sure your vision, strategy and needs are known so the vendor can support your business.
Here are some of the reasons we have a quarterly review with our customers:
1. Ensuring your payments are accurate.
No one wants to pay more than they have to, and no business should be paying less than they need to. Estimating quarterly tax payments is complicated and challenging and consequences for missing them or underpaying can cost your business. Having a good communication with your accountant is key to maintaining accurate financials and cash flow.
2. Changes to your operations and tax implications
As you manage the daily operations of your business, decisions you make on the fly can have a large impact to your taxes and financial requirements. It's critical that owners align their business decisions with financial requirements to minimize any costs while still being able to implement your strategy.
3. Managing your Cash Flow
One of the key factors to your business is maintaining its cash flow. Cash flow management is needed to ensure you can continue to operate. Paying your employees, monthly operating bills and quarterly taxes are all examples of key cash flow items that need to be projected along with your expected revenue. Managing your cash flow allows you to maintain operations while planning for change.
We've developed an accounting quarterly review guide which you can download to ensure you and your accountant are on the same page.