As an accountant for small business, you act as your clients’ first point of contact for financial advice.
A business can look to expand in a number of ways. You can help your clients to choose the kind of expansion that best suits their current state, and once that path has been chosen, help them to reach their growth potential.
Choosing when to expand a business
Expanding a business can mean adding locations from which it operates, embarking on a new service or product line, becoming an exporter, buying up another business’s operations, taking on more employees, or improving marketing efforts to make deeper inroads in their current market.
Businesses are typically pursue expansionary strategies once they have reached a measure of success in securing their place in their market. A business’s lifecycle will take them through the establishment phase, then through the survival phase in which a business strives to achieve profitability and to increase cash resources, to the success phase, in which the business moves to create an institutional structure and begins to leverage its borrowing power. It is at this stage that a business should intensively plan its expansionary strategy.
Choosing how to expand a business
A business can expand in a number of ways. These include:
- Adding a new location
- Exporting goods overseas
- Employ more workers
- Introduce a new service or product line
- Upgrade current premises or capital equipment.
With investment expansions, your primary role for your client will be helping your client secure the loans that they’ll need. To do this, preparing robust financial reports and cash flow projections will go a long way to convincing banks to give your client’s business a chance.
When the business growth regards expanding distribution overseas, your expertise will come in handy in ensuring that your client keeps to the letter of the law as regards the duties that they’ll need to pay, the sorting of currency issues, and making certain that they meet the legal requirements for doing business in their targeted country.
When a company wants to employ more workers, you can contribute by structuring the new payroll properly, ensuring that payments go off in good time. You can also provide great suggestions to business owners about how to distribute information among new employees – a transparent pay-grade system can reap huge benefits. When workers know what it takes to rise through the ranks, they’re more likely to work to achieve those goals. If a business is looking to keep performing workers, you may be able to help your clients manage an employee share scheme, to keep talent at their company, and to equitably distribute the rewards of a firm’s good performance.