Too many small business owners find themselves in a fog when it comes to their company’s financial statements. They don’t know where the company is, how it is doing, and how their decisions will impact the company’s financial health.
I started Kauffman CPA Company to help small business owners gain clarity over their finances and make smarter decisions.
Here’s the advice I give owners to help them move from financial fog to clarity.
The Four Functions of Accounting
For most small businesses, there are four functions of accounting that you need to fill:
Responsible for recording day-to-day information, paying bills, running payroll, recording receipts & deposits.
Responsible for accurate set of financial reports for each month.
Responsible for helping business owner identify trends from the monthly reports. They will help the business owner use this information to project into the future. They may also help the business owner manage costs, negotiate with vendors and manage relationships.
Responsible for regular tax filings on behalf of the business.
As a small business, you don’t need to have a person or department for each of these roles. But you do need these functions to exist so you can have financial clarity. If one or more of these functions is not happening, you will find yourself in a financial fog.
What Accounting Functions are You Lacking?
As a business owner, you should not be spending your time filling any of these roles; it is better in the long-term health of your company if you invest your time in business development, team development, or networking.
Look at the 4 accounting functions above and ask yourself “What accounting functions am I lacking in my business?”
Most businesses have someone filling at least the tax functions: filing taxes when necessary. For the other roles (bookkeeping, controller, or CFO), you may have a spouse, employee, or yourself filling the function. As your company grows, the demands of these functions have likely outgrown the person you’ve placed in that seat.
Free Assessment for Financial Clarity
At Kauffman CPA Company, we’ve developed an assessment to help business owners like you understand their current accounting functions and what areas they are lacking. It’s just a few questions long and is the first step toward gaining financial clarity for your business.
If you’d like to receive this free assessment, contact us today.