How An Accountant Can Help Your Business In Times Of Economic Uncertainty

As most of us know only too well, times of economic uncertainty can appear from out of nowhere, at any time, and if you’re a small business owner, worrying about your future is unavoidable.

With this in mind, it’s important to have some kind of contingency plan in place to help your business ride out the rough patches, and come out unscathed the other side. Part of that plan should involve seeking help from an accountant or CPA, and here are just a few ways they can help your small business in times of economic uncertainty:

By focusing on your balance sheet

Many small business owners will focus their attentions on sales during times of economic hardship, and while this isn’t necessarily a bad thing, an accountant or CPA will encourage you not to neglect your company’s balance sheet, which could prove critical for your businesses survival.

Analyzing your accounts receivables

Accounts receivables could be vital for helping you keep cash flow at an acceptable level during times of monetary crisis, so it’s important that with an accountant’s help, you analyze and keep on top of your existing accounts receivables.

Advising you on negotiations with suppliers

Your accountant may well recommend that you try to negotiate your payment terms with existing suppliers, especially after analyzing your accounts receivables.

Reducing your debt

Strategies to help you reduce any existing debts you might have, are best formulated with the help of an experienced accountant. With their scrutiny of your debt and credit, plus years of expertise and knowledge, they can help you learn how to negotiate successfully with lenders.

Discovering tax breaks

When tax season comes around (and it always does, no matter how hard you try to avoid it!), tax breaks can prove invaluable, but they’re not always easy to identify, especially when the IRS make continual changes to tax laws every year. Having an accountant on board can help you find ways to reduce your taxes at a time when every dollar really does count.

Reviewing discretionary spending

While you may think you’ve cut costs in as many different places as possible within your businesses budget, there’s always a chance that you’ve missed something, and an accountant can help you easily identify these.

Guide you on diversification and expansion

Expanding your business or diversifying might be the last thing on your mind during uncertain economic times, but actually, it could be a great time to do exactly that. Your accountant or CPA can guide you towards thinking about the future, instead of just thinking about where your business is right now, and give you the chance to review changes that could be made to generate cash flow and profits.

You might think that during times of economic uncertainty - such as those many of us experienced during the COVID-19 pandemic – that there is little you can do to improve your businesses chances of survival, let alone of success. But, with expert guidance from an accountant, you could stop swimming against the tide, and make a break for the shore, where profits await you!

Don’t let economic uncertainty cause you to flounder, seek help from an experienced accountant and look forward to a brighter future for you and your business.