While the phrase “don’t put all your eggs in one basket” can often be sound advice in daily life, it doesn’t exactly apply when it comes to your business finances.
In fact, consolidating all of your business finances to one source like a certified accounting and financial group can ensure that you streamline your bottom line and keep accurate financial records.
Cash Flow Management
One key benefit of consolidating your business finances is simplified cash flow management. It’s a factor that many small business owners consider, but only when they’re in dire straits. The fact is, 82 percent of businesses fail because of poor cash flow management.
That’s certainly not a small number.
When you have your business accounts in one place, it allows you to develop a streamlined strategy. One that helps determine which accounts are best for certain expenses and how much you can afford to spend.
Tax-Efficient Business Finances
When the COVID-19 pandemic was in full force, a majority of business owners felt the pain of a red year, and many had to shut their doors. The frustrations that rose out of the depths of the pandemic have business owners on edge about the upcoming year.
And while business owners can offset future income with net operating losses, it must be filed professionally to get the most amount of money.
Another method to maximize tax efficiency is by allocating investments into retirement accounts. Financial advisors can help explain the benefits of each, but they’re typically not allowed to go into detail and will generally refer you to an accountant either way.
It’s also possible that the financial advisor’s firm you have accounts with has a tax preparation department. If not, your advisor can work directly with your CPA to ensure your tax goals are met each year.
Frankly, when you work with numerous firms for different needs, you end up with a pile of paperwork that takes hours to sort through. Even with the introduction of e-statements and documents, it ends up hogging too much space in your inbox.
Consolidation allows you to receive all your paperwork in one accessible location. This removes the need to file and organize multiple statements, receipts and tax documents either annually or multiple times a year.
That way, when tax season rolls around, you’re not scrambling to ensure you have everything you need. Consolidation reduces hours of work into a few minutes.
How much do you spend on your services? Typically, small business owners can get a lower overall cost when they consolidate their service needs with one provider.
So instead of paying $400 per month for five different services at different firms, why not consolidate them all and ultimately save your bottom line?
Diversifying your investments is a great strategy in the stock market. However, it can be detrimental to your overall costs when it comes to business finances.
Bookkeeping can get tedious when you add on payroll, tax preparation and developing a tax strategy. The good news is, you don’t have to battle it alone.
Get in contact with our certified and licensed specialists to see how we can help maximize your profit and streamline the entire process.