It’s tax season and that means that if you are a business owner, you will likely be meeting with your external accountant in the weeks ahead. To many, this is a dreaded annual event. Make the most of this meeting by using it as an opportunity to look beyond your tax return and discuss issues with a trusted advisor that are critical to the future of your business.
Do any of these questions keep you up at night? If so, make sure to include them on your agenda when you next meet with your accountant.
- Business Value. What can management do next year to increase the value of the company? What initiatives would have the largest effect on the company’s value? What is holding the company back?
- Goals. How does the company’s financial condition align with our strategic goals? Is the company on solid financial ground? What are the company’s vulnerabilities? Where should the management team concentrate? Is the company ready to “take on” its goals?
- Capital. How can I improve the company’s ability to access capital? What other sources of capital should we consider? What does the company need to “look like” before we are legitimate players in these capital markets?
- Management Team. Have I developed a management team that is capable of sustaining operations when I leave the business? How can I retain key management without giving up equity in the business?
You shouldn’t have to wait a year to revisit these issues with your accountant. Commit to a quarterly lunch meeting to follow up and explore these and other questions in depth. Take advantage of your accountant’s understanding of your business and breadth of experience and engage in regular conversations that can assist you in your role as business owner and save you from many sleepless nights.
RKL’s tax, accounting and business consulting professionals help business owners address issues, take on challenges and achieve new levels of success. Want to know more about how we can help you? Contact one of our office locations today.
Contributed by Gretchen G. Naso, CVA, MBA, a principal in RKL’s Business Consulting Services Group. A Certified Valuation Analyst, Gretchen has extensive experience in general and family limited partnerships and valuations for financial reporting, purchase price allocation and gifting and estate tax purposes.