How to work with your CPA Firm on new and exciting services in 2021.
Just like your business, your CPA Firm has started to diversify its service offerings. Not only to take on the behemoth of a year that was 2020, but to continuously evolve and provide the best possible service to their clients (that means YOU!).
Your CPA Firm can now advise and work with you on your cash flow. And focusing on cash flow is a great strategy along with one of the fundamental reasons your business will stay alive in the face of adversity. Cash flow is the lifeblood keeping you in business and bringing on your CPA in an advisory relationship is the next step to thriving in 2021.
Working with your CPA in a new capacity might seem strange to you, which is totally normal. It’s a new working relationship.
But what do you need to have ready? What concerns do you have (or are they just nerves)?
If you’re nervous, your business probably needs the help… and there’s no time like today to get started!
CPA firms are taking the next required steps towards becoming advisors for their clients. Not only have more businesses been requesting these services of their CPAs, but more businesses are also in search of these services and are willing to switch financial partners to find them!
So, how are CPAs working with their clients to help manage their cash flow?
Throughout 2020, each and every business has faced a number of hurdles. Whether the hurdles were demand-based or regulation-based is not super relevant; what matters is how businesses have adapted in order to make ends meet.
A lot of this has to do with how adaptive business leaders are, and the tools at their disposal. Many businesses spent the year operating at reduced capacity or have faced uncertain or even halted cash flow due to government regulations.
In order to adapt and thrive, many businesses turned to their CPAs in an advisory capacity, to help manage their cash flow.
CPAs have helped businesses navigate the complex world of government relief programs, eligibility for assistance, tax breaks/programs, and revenue gaps/lines of credit. Basically, because of their skills, they are excellent at devising strategies for survival and helping to turn your business around during challenging times.
Coronavirus aside, many CPAs have noted that rent is one of the largest costs for SMEs. They have advised businesses to negotiate rent terms with their landlords, even offering creative arrangements like paying base rent and amortizing the remainder. There are also government assistance programs to help with rent.
How else can your SME manage cash flow in 2021?
Managing cash flow is not simply a task you assign to your CPA. You need to follow their advice while enacting strategies that will help your business operate in a way that optimizes cash flow as well. This means conducting and following forecasts, reducing expenses, create budgets, and other creative solutions.
And, of course, in order to conduct proper and accurate forecasts, detailed records must be kept and accounted for. Keeping your records up to date and streamlining your accounts is one of the most productive things you can do for your business in 2021, even if it does take a few days to set up.
You can also pursue a number of creative options to increase cash flow including diversifying your product offerings, conducting consumer research to find new profitable segments, and selling through new channels (like creating an online store).
Your CPA Firm is a valuable tool that is often underutilized. If you’re not working with your CPA team to refine your cash flow management, you’re missing out on a valuable service. Start strategizing today so you can optimize your operations. Getting back on track and maintaining a positive cash flow into 2021 is crucial for your business’s survival. Prepare for the worst and you’ll come out on top!
Are you curious about how else your small business can manage cash flow moving forward?
Take a look at a few of our other articles on creative cash flow management tips and strategies here. And consider using Dryrun cash flow management software for everything from collaboration to forecasting to complete visibility of your business’s health at any given moment!
Contact us today for your demo. Dryrun.com