Small business owners are the backbone of the American economy, with over 30 million businesses driving growth and innovation. However, many of these businesses struggle to understand their financials, leading to cash flow management problems and, ultimately, business failure. A study by US Bank found that 82% of small businesses fail primarily due to cash flow management problems. This is where accountants and advisors come in – they can provide the critical financial clarity and advisory services that small business owners need to succeed.
Business Advisory Services
As the watchers on the financial tower, accountants have a unique vantage point from which to raise a warning voice against financial danger. With their insight into each client’s financial performance, accountants can help small business owners make valuable business decisions that can impact the value of their businesses. According to a survey by Sage, 83% of clients ask for more services, and 42% expect their accountants to provide business advisory services over and above accounting, compliance, and tax services. Clients need more from their accountants, and they need help to understand where they stand financially.
Assessing Business Health
One key metric in assessing a business’s health is cash flow, and many small business owners struggle to understand its mechanics and why it must be tracked closely. To help their clients manage cash flow, accountants can provide training in five key areas: documenting and tracking every invoice, having emergency cash available, storing enough inventory, avoiding taking on too much debt, and meticulously analyzing costs.
Empower Businesses
By providing critical financial clarity, accountants can empower small business owners to make better decisions and grow their businesses. Justin Hatch, CEO of Reach Reporting, tells the story of an accountant who had a client earning millions in revenue but wasn’t making any gross profit. The business owner believed he just needed to ramp up more sales, but his real problem was not understanding each unit’s actual cost. By explaining his costs to the business owner, the accountant got him on a financially solid footing to successfully make the needed changes to grow the business.
Attract More Clients
To help accountants deliver beautiful, easy-to-understand financial reports to their clients, Reach Reporting offers a platform that reduces costs, increases productivity, and provides proactive insights. With Reach Reporting, financial professionals can move into an advisory role and attract tomorrow’s clients. Don’t assume that each business owner truly understands the standard financial reports – let Reach Reporting help you deliver critical financial clarity to your clients. Book a free demo today!