Chances are, you may be reading this because you aren’t sure what your business consultant can actually do for your business or what you should expect. Here’s what a business consultant should be able bring to your business:

Professional – The best consultants treat a client as though the business were their own and then create strategies to ensure it succeeds.

Attentive – You need someone who takes the time to listen to your needs and shows an understanding of what will make your business work even more efficient.

Good Communicator – A business consultant needs be an effective communicator. That means every time you confer about a business matter with your consultant, you should receive a written summary and an action plan for getting this done. A good business consultant listens first and offers solutions second!

Practical Experience – Business consultants should have their own successful businesses that have prospered for at least three years. Anyone who has the ability to run a company during the first difficult years has been able to learn a lot and that knowledge then passes onto you.

Well-Rounded – A business consultant should have a well-rounded background. Look for someone who has a career track record of working in several industries, not just the one you happen to be in. This is important because you need those additional insights and resources to make your business stronger.

Networked – A business consultant should have active networking skills and an abundance of contacts. The best consultants are out amongst other business leaders in the business community on a frequent basis and they understand how networking works, both in person and online.

Passion – The last thing you need is someone who needs motivation. Choose a business consultant who clearly demonstrates a passion for what he or she does. This person will be your “right-hand-man” for a good while so you want someone who is driven to see you succeed in meeting your goals over the long haul.

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There are a number of reasons to hire a qualified business consultant to assist you with the problem areas of your business. By selecting a business consultant who has the above characteristics, you can expect the best for your time and financial investment.

Be prepared to treat your business consultant like a trusted partner. Whenever possible meet with them personally, involve key personnel in the process and do everything to make the experience a team effort. The services of a business consultant can prove very beneficial to your business when you utilize the recommendations made with due diligence. Remember, consultants do not make decisions for your business. They offer unbiased and educated advice that offers a foundation on which to formulate decisions for your company

Learn to Painlessly Adapt to Change – The business world is in constant flux. You have to be able to adapt quickly without losing track of your main goal or mission. Adapting to change is a positive for you and your business.

Access Risks – The better you are at assessing risk, the better your outcomes will be. You’ll be able to make intelligent decisions, and you’ll avoid making decisions that could put you out of business. This will allow you to seize good opportunities that pass others by.

Creativity – In business, being creative in the right places can give you the edge you need to stand out and offer something special. Practice creativity in small steps. Ask questions like, “What can I do to improve this?”  By having professional outside help you are protected from failing to look beyond the ways you’ve always done things.

Knowing your Numbers – Of course, this is the obvious advantage to having a CPA. Numbers and business go hand in hand. And a good CPA will do more than take care of your numbers. He or she will help you become more confident in dealing aspects of those numbers yourself. If you don’t know much about numbers, you’re going to need to learn. You need to know whether or not you’re profitable, how to manage money, how to hold onto your money, etc. Even if you hire an accountant or bookkeeper, you still need to know what’s going on in your business.

Take Charge of Marketing your Business – Whatever business you’re in, without marketing, you won’t have much of a business. You need to develop marketing skills. Marketing can be as simple as placing ads, creating promotions, or creating enticing signs — anything that gets the right people to know about your business and do business with you is a form of marketing. It must be done. It’s the lifeline of the business.

Timely – If there is anything a professional accountant is, it’s timely. Their lives are governed by fixed deadlines and long range planning. This kind of thinking is valuable to every aspect of your business.

Focus – A CPA can help you focus on what’s best for the business. What can you do better for your customer? How can you make your customers happy? Questions like these help you become an excellent businessperson. When you focus on yourself, you tend to cut corners, finding simpler ways that may be less effective. They may do the job, but they may not create great outcomes.

Performance – When you’re doing something important, ask yourself, “Am I doing the best I can?” If the answer is “Yes,” that’s great. If you have doubts, then push yourself to do a better job. No one can expect more than your best, not even you. Good CPAs are more than accountants. They are silent business partners, advisors, and financial visionaries. Most of all, they are performance oriented. They want to give you the nest results possible which can only lead to a greater focus on performance by everyone in your business.

Your CPA should be able to help your business with:

Budgeting – Almost all businesses require a budget and a CPA is specially trained to know how to work with you to design one that works best for your unique situation. Many people can prepare a simple budget but a good CPA understands the even the best designed budget is not something set in stone. Various influences, both internal and external, can create the need for adjustments throughout the year. Part of a CPAs skill is in offering advice on how to stay on track in spite of minor changes that are bound to occur.

Particular Business Needs – Some CPA firms have partners that specialize in specific types of industries or sizes of business. A number of CPAs, for example, specialize in small business and can offer insight on the peculiar needs of such businesses. Others are best known for working with health care, construction, publicly traded companies, or not-for-profits.

Banking Relationships – Most CPAs that work in Maple Grove have fashioned close associations within the local financial community. They are aware of the area’s current business atmosphere and as a result can leverage banking relationships to help you in obtaining financing on a long-term or temporary basis.

Insight into Your Business – It’s a CPAs job to understand your business. It is essential for your CPA to spend time with you and your employees. There is no better way to gain an accurate picture of your financial situation and how to make it even better.

Insurance Coverage and Risk Assessment – Because CPAs are attentive to their other clients’ businesses and have often assisted them in obtaining coverage, they can be a good first line of advice concerning insurance coverage. They also have gathered a fair amount of understanding from the mistakes they have seen other clients make in the past. The CPA works with the insurance agent in helping you get the best coverage that is right for you, your business, and your family. This real world knowledge is invaluable in offering direction for your business.

Mergers and Acquisitions – You CPA firm in Maple Grove can be an important asset during times of acquiring a new business, during a merger, or when selling your business. The CPA assisting you during these times can monitor the progress of such transactions and provide advice on various rules and regulations.

As you can see, the role of a CPA has become much more than balancing ledgers or preparing taxes. The right CPA becomes a partner in making your business work as efficiently and effectively as possible.

Larger businesses, as a matter of standard practice, counteract this effect by making use of business consultancy in Minneapolis. But a logical and growing trend is that small business owners are now realizing they need a consultant even more than their larger counterparts.

Among other things, a business consultant can offer:

Analysis

A business consultant can offer analysis of the current status of your business in areas such as customer satisfaction, production, cash flow and growth potential. This professional analysis can then be used to streamline operations and optimize a business for long term growth.

Perspective

Business consultants help you take a look at your business from a different point of view. They can help you see your business through the eyes of your clients and customers and make adjustments accordingly. By looking at your business from the outside-in they can point out better ways of responding to customer needs, doing business, and ultimately becoming more profitable.

There is often nothing more valuable than a fresh set of eyes on your business situation. Physicians often refer patients to another physician for a second opinion. They understand it is possible to become too familiar with a patient to ensure that every possibility has been considered. Business consultants offer the same kind of fresh perspectives that produce new ideas that existing staff and management may not be able to see.

As businesses expand they become more complex, making the need for as many perspectives as possible essential. Seeking a business consultant to analyze your business does not show lack of ability on your part but rather proves your determination that the success of your business continues.

Strategic Advice

After analyzing your current business situation, a business consultant assists you by making recommendations about marketing strategies, company structure, and branding considerations. Strategic advice can include issues such as employee ratio to income, salary structure, and plans for a branding.

It is essential to find a business consultant that will take the time to listen to your needs and show an understanding of what will make your business work more efficiently. The best consultants treat a client as though the business were their own and then create strategies to ensure it succeeds. Finding the right consultant requires research. The right business consultant will be willing to supply:

• References from previous and current client

• A proven track record of results for clients

• Proven business credentials

• Costs comparisons of the consultant’s fees and clients’ business savings

Treat your business consultant like a trusted partner. Whenever possible meet with them personally, involve key personnel in the process and do everything to make the experience a team effort. The services of a business consultant can prove very beneficial to your business when you utilize the recommendations made with due diligence. Consultants do not make decisions for your business. Instead, they offer impartial and educated advice that provides the groundwork for formulating decisions for your company.

Here are some simple yet much needed small business accounting tips that will keep you from becoming overwhelmed by all the paper.

Tip #1: Keep it Separate

Too many business owners mix personal and professional finances and later regret it. Even if you are sole proprietor and your only employee, keep personal and business finances separate at all costs. Every small business owner should have a separate business checking account. If you should need funds from your business, make a cash withdrawal or write yourself a check. This will make expense tracking and budgeting much easier on you. Come tax time, you will thank yourself for being able to accurately track business expenses.


Tip #2: Stay Up to Date

Falling behind on your bookkeeping will slow down everything else in your business. Schedule specific days and times to primarily deal with bookkeeping. If you can’t make the necessary time to successfully complete that task, you probably should consider outsourcing the work, or hiring a part-time bookkeeper. The success of your business cannot happen without your bookkeeping running smoothly.


Tip #3: Know and Use Your Numbers

Your financials reflect a lot about your business but you have to know what to look for. If you have a bookkeeper or accountant, look to them at least quarterly for a thorough breakdown of your financial position. Either should be able to give you a written and oral report on how your business is performing. What areas are weak, and what areas are strong. They also should be able to provide advice and an action plan on how you can strengthen your financial position.

Tip #4: Know What to Look For

Recognizing expenses and revenue will make the difference in how your taxes are calculated and how your business performs month-to-month. If you use the accrual basis accounting system, your year and month end numbers will be very different than in cash basis accounting. Know what accounting method you are using, and how to recognize revenues and expenses correctly.

Tip #5: Check, ReCheck, and Triple Check

If you do not use an automated accounting software program (QuickBooks, etc) there is a possibility your books will not balance at the end of every period. A “Trial Balance” method will help you catch mistakes early and often and save you from year-end headaches. It might also help you spare the added expense of having to use your CPA to find problems after the fact that arises from calculation errors.

Never blindly trust your accounting software. Even the best software can’t protect you from erroneous information. Protect yourself by reconciling your bank account against the program every month. That ensures you catch errors that may have occurred when filling out checks, invoices, or journal entries.

These simple small business accounting tips will go a long to preserving your sanity and allowing you to do what you do best – run your business.

A good business advisor is current on how best to respond to those changes and prepare your business for what lies ahead. Business advisors can help you determine if your business is operating at peak efficiency.

Whether they are independently employed or work for a larger company, advisors are called upon to support both new and established businesses. They analyze a company’s business plan and financial statements to properly advise it about investments, marketing and potential funding opportunities. Technology is now able to produce financial reports without the help of a business advisor, but it is the job of the business advisor to analyze those reports.

Here are some questions a business advisor would ask to help you determine how well you know your business.

• Do you know the Return on Investment of your advertising and marketing dollars? In other words, can you track and quantify your advertising ROI?

• Do you know how much profit your advertising dollars bring into your business? If you can’t answer this question the odds are your business is losing money on marketing and advertising. If you can’t track what works – then it’s probably not working.

• How many times in a year does your average customer purchase from you? What is the average transaction value? How much is that average customer worth to you over their lifetime?

These numbers are extremely important to any business because they determine how much money you should and are able to spend to acquire new customers. Your customer acquisition costs are a primary ratio in determining the value of any marketing or advertising outlay you make.

If you can’t answer the following questions with clarity you need a qualified business advisor:

• Do you utilize direct response permission based marketing?

• Do you keep a database of customers and contact them regularly, as in once a week at the very minimum?

• Do you fully understand the key ratio in your business – the Profit Margin? Do you understand what tiny incremental increases in Profit Margin can mean to your business? Once you grasp the importance of this, do you understand how to make it happen?

• Do you know the only three ways to grow your business? As simple as that sounds, yes, there are only three ways your business can grow?

The Only Three Ways a Business Can Grow

• By acquiring more customers

• By selling existing customers more products or services

• By some combination of either increasing prices or cutting costs.

Qualities to look for When Choosing a Business Advisor

An excellent business sense is one of the most important skills required for business advisors. More than anything else, advisors must be able to tell a company how to make a profit, so they must understand the needs of consumers in order to advise companies on how to meet those needs.

Communication skills are vital, because business advisors are expected to create and maintain client relations.

Additionally, business advisors must be knowledgeable about current financial trends.

If you outsource accounting services to a Minnesota based firm you gain two major advantages. First, you can take advantage of a company that specializes in nothing but accounting. Secondly, your money is being handled by people familiar with the ever changing tax codes and statutes of Minnesota.

Why Consider Outsourcing?

1. Lowers costs with Greater Benefits

Outsourced accounting firms can provide state-of-the-art infrastructure that assures superior results. As a result, you no longer have to purchase expensive software, additional computers, or hire personnel to maintain them. Because, an outsourcing firm specializes in nothing but accounting it can offer superior results in less man hours. The result for a small business means more profitability.

2.  Allows you to Focus on what you Do Best

By transferring accounting needs to outside specialists, business owners can focus on what they do best – run their business. Both management and employees are freed to focus on the most essential and pressing issues in their business. A business that chooses to outsource its accounting services also saves the time and capital that would have been required to hire, train, and pay accounting personnel.

3.  Increases Productivity Level

Time spent on running your accounting system is time lost to creating and implementing your business plan. Accounting, by nature, can be tedious and time consuming.  Resources needed for improving customer relations, creating better products, and providing better services can be tied up by the day-to-day requirements of good accounting procedures. Small businesses in particular simply do not have the personnel to properly keep up with innovations in accounting and changes in Federal and State tax regulations.

4. Takes Advantage of Real Time Tracking

Good accounting software is expensive and requires trained users. But it also can provide the kind of real time information normally relegated to large business. When you outsource your accounting to a firm you will have access to minute-by-minute information about your receivables and payables that make the difference to your bottom line.

5. Provides Greater Control for Business Owners

Business owners often hesitate at placing their accounting offsite because they fear losing control of their financials. The opposite is actually true. By placing your financials in the hands of a reliable accounting firm you will have time to use the data they provide to make good business decisions. Information will be available in an orderly manner as compared to having to process raw data on your own.

6. Effective Tax Calculation

Calculating your taxes properly is essential to the overall profitability of any business. Overpaying taxes obviously drains resources. However, failure to file and pay proper taxes can result in costly penalties. Often times such penalties can be avoided if financials are placed in the hands of someone with up-to-date training and knowledge of changes in the tax codes.

Most accountants are well qualified to do basic bookkeeping and handle your taxes.  So how do you know which one to choose? As in any business relationship, it comes down to compatibility of interests, outlook, and experience. To help you make the process of choosing a small business accountant simpler, here are some questions your prospects should be ready to answer.

Are you a Certified Public Accountant?

There are a many non-CPAs who do extremely well at small business accounting and financial consulting.  But depending on the nature and size of your business, you may need a CPA. CPAs have reached a certain education level, passed state-administered tests, and must re-certify on a regular basis. Some instances like audits and most loan applications will require a CPA’s involvement. A CPA charges higher fees and can be brought in for specific needs. Business owners have to determine which is best for their needs.

Who are your other clients?

It is important than an accountant understand your specific kind of business. Reputable accountants will gladly provide a list of current clients. If some of those clients are businesses like yours, that is a good indicator this accountant may be for you. It is also essential to determine if the prospects can handle the work load of another client in your type of business. Will they have the time resources to support you adequately?

Are you tech-savvy?

Accounting packages like QuickBooks are only as functional as the person who installs and runs the applications.  Do a little homework if you aren’t tech-savy so you can ask the right questions. For example, ask how they will incorporate your computer files with the technology in their office. What role will the Internet play in keeping in touch and interchanging financial information? Their readiness and ability to answer these questions indicates if they are the right accountant for you.

What kind of business advice will you offer me?

Ask the candidate to offer a couple of quick ideas on how your business could save money right now. Ask them for examples of how they offered useful business advice to other clients. Look for something beyond tracking numbers. Having a creative business mind is a huge asset towards helping companies grow and profit.

Are you active in the local business community?

Active accountants are interconnected in the local banking and business community. Determine if the person you are interviewing can introduce you to prospective customers, bankers, investors, and suppliers. Ask the accountant for examples of introductions they’ve made in the past for other clients and how those introductions played out.

How do you calculate your fees?

If they use a time-based fee structure, make sure you know their hourly rate, as well as all fees for expense reimbursement. Does a two-minute phone call or a one page fax mean an hour of billable time? If so, keep looking. Quality accountant will have a fixed fee structure and be able to present it to you in a clear and concise manner.

Small business owners have more important things to handle than keeping their own books. The best bookkeeping and accounting services in Minneapolis can handle your books, freeing you up to run your business, satisfy your clients and customers, and make a reasonable profit.

Why you Need a Bookkeeping and Accounting Service

Income Statement

Also known as a profit and loss statement, the Income Statement gives you an itemized reconciliation of expenses and revenues for your business during each time period. An accurate and detailed income statement enables you as a business owner to:

• Track expenses and revenues so you can verify your business’ performance.

• Discover areas of your business that are either over-budget or under-budget.

• Recognize unanticipated expenditures such as added utility costs, Internet services, or shipping costs.

• Flag unwarranted increases in product returns or costs or as a percentage of overall sales.

• Precisely calculate tax liability.

Bank Statement Reconciliation

Many small business owners are more than capable of balancing a bank statement but find it much more cost effective to have an outside expert handle this task. Reconciling your checking account on a monthly basis enables you to keep your accounting procedures, bank accounts, and taxes up to date. A bookkeeping and accounting service will ensure that:

• Any excessive or inappropriate bank charges are detected and steps are put in place to prevent any future wrongful charges.

• Lost deposits and checks are identified.

• Transactions are properly posted by your financial institution.

• Should any embezzlement of funds occur within your company, it is detected quickly.

• Cash and assets are effectively managed.

• Fraudulent or unauthorized checks presented to your financial institution are detected in a timely manner.

• Accounts are properly reconciled and you are protected from possible fraud.

Balance Sheet

A properly prepared balance sheet provides a clear perspective of your business’ financial condition for any specific moment in time. This allows you to:

• Identify and analyze trends in receivables and payables.

• Recognize the financial strengths and capabilities of your business in a timely manner.

• Make intelligent decisions about future business endeavors like planning for expansion.

• Identify the need for and steps to guarantee improved cash reserves.

• Recognize possible cash shortages and enact plans to respond to them.

General Ledger

A business’ general ledger is the heart of its financial records. Since every transaction of your business flows through your general ledger, it is critical for it to be clean and trustworthy. By reviewing a business’ general ledger system on a monthly basis, your bookkeeping and accounting service can identify discrepancies such as double billing or unrecorded payments and correct your books accordingly.

Consultation

One of the greatest needs of any small business owner is to have someone they trust and can consult with about business decisions. Part of the role of the best bookkeeping and accounting services in Minneapolis is to become a silent partner in making your business work the best it can.

If you are considering starting a business, a small business advisory service can become the unseen partner that ensures success during those critical first months of operation. Among other things your small business advisory service in Minneapolis can help:

• Develop business plans
• Identify and assist you in applying for sources of capital
• Work with you in developing marketing strategies for expanding your customer base
• Set up record-keeping systems
• Analyze and develop better financial performance
• Identify and help in the bidding process for government and corporate contracts
• Conduct research on a diversity of topics geared to the specific needs of your business

To make the best use of the time you will have in your first consultation, take the time to answer the following questions.
 
1. Why do you want to start a business? (Check all that apply to you.)

• I have experience in my industry and feel that I can work for myself.
• I am currently out of work and am looking for a way to earn income.
• It has been a lifelong dream to start my own business.
• I am unhappy with my current employment situation.
• Other______________________________________________________________

2. What type of business do you want to start? (Circle one and describe.)

• Retail/Wholesale__________________________________ (type of product)
• Construction (residential, commercial, both)
• Service____________________________________________(type of service)
• Manufacturing____________________________________(type of product)
• Invention_________________________________________(describe)
• Other____________________________________________(describe)

3. How much funding will your business require to start? (estimate) ______________

4. When do you plan to start the business? (month, year) _______________________

5. Estimate your first year sales? $ ______________

6. How do you plan to finance the start-up of your business? (Check all that apply.)

• Savings
• Bank Term Loan/Line of Credit
• Investors
• Friends, relatives
• Other_________________________________________________(Identify)

7. How much money do you have available to invest in the business?

8. What is your current occupation? ___________________________________________

9. Which industry do you work in? _____________________________________________

10. How would you rate your credit history? (check one)

• Excellent
• Good
• Satisfactory
• Less Than Satisfactory

11. Which legal structure are you considering for the business? (Choose only one.)

• Sole proprietorship
• Partnership
• Corporation
• Limited liability partnership (LLC)
• Unsure at the present time

12. Have you registered the name of your business? _____________________

13. Do you currently have a draft of your business plan? _________________

14. Is anyone currently providing the same or similar services/product as your business?

• Yes (Identify two companies if possible) __________________________________
• No

15. Do you have any collateral (real estate, inventory, equipment, vehicle, CDs, stock)?

• If yes, identify type(s) of collateral____________________
• No

16. Is your business home-based? _______

• If No, have you found a location for your business? ________

17. Have you ever worked, or are you currently working in, the industry?

• Yes. If so, for how long? ___________
• No.

18. Have you identified your target market? __________

19. Do you plan to contract with local and federal government agencies? _________

20. Do you plan to export? __________

21. Do you have an accountant? ________

22. Do you have a lawyer? _________

23. Will you need to hire employees for your business?

• Yes. How many in the first year (estimate)__________________
• No

24. Do you have a recent (within the last year) copy of your credit history report? _________

25. Have you filed bankruptcy within the past ten years? ________

26. Have you ever owned a business before? ________