The Accountant’s New Role: Strategic Advisor for Small Businesses

Running a successful business is complicated. From navigating the regulatory maze and managing cash flow to selecting technology and planning for growth, small business owners face myriad challenges. In this fast-moving business landscape, the role of the accounting profession has evolved significantly. Accounting professionals have become strategic business advisors who provide essential insights and comprehensive guidance to help small businesses thrive.

Cloud-Based Accounting Enables Real-Time Financial Insights

Small business owners can benefit from seasoned expertise on everything from streamlining operations to identifying the ideal time for new investment. Such strategic insights can help leaders remove barriers, reduce risk, and capture fleeting opportunities.

Technological advancements have helped make that level of support possible. With the rise of cloud accounting software and data analytics tools, accountants can now access real-time financial data, which empowers them to shift from historical data analysis to predictive analytics and strategic planning.

This transformation facilitates a deeper relationship between business owners and their financial advisors. Accountants can provide actionable ideas that drive planned growth and help small business owners make informed decisions, with an expansive array of services to meet varied needs.

Key Advisory Services for Small Businesses

Advisory services delivered by your accounting firm can provide wide-ranging benefits for your small business. Key services of the new advisory-focused model of accounting include:

Financial forecasting: Accountants can assist with projections to help you anticipate future revenues, expenses, and cash flows — information that allows you to make better decisions about new investment, hiring, and expansion. For example, cash flow forecasting can help a small retail business anticipate seasonal fluctuations to better manage inventory and staffing, potentially increasing sales during peak seasons.

Business consulting: Beyond traditional accounting services, accountants can help you address concerns like operational efficiency and process improvement. If you own a small manufacturing company, for example, this kind of consulting could identify inefficiencies and supply chain vulnerabilities. In turn, these findings may bring up ways to streamline the production process and strengthen supply chain resilience, leading to significant cost reductions, greater profitability, and reduced risk of operational disruptions.

Strategic growth planning: Whether you’re running a tech startup or growing an established construction company, a strategic growth plan can help you stay on track to achieve your objectives. Collaborating with your accountant, you could make a plan that lays out various funding options as well as providing market analysis and financial projections. Together, this information positions you to secure the necessary funding and expand at the optimal pace while competing effectively as you grow.

Risk management: Accountants can develop strategies to help business owners mitigate risks of all types—such as regulatory, operational, and market-centered risks. By identifying potential pitfalls while they’re still on the horizon, risk advisory services can help you navigate uncertainty and allow your business to become more resilient.

Technology selection and implementation: Using appropriate technology can improve your business performance and provide a critical competitive edge. But getting the full value from your investment requires choosing the optimal platforms and software, seamlessly integrating new tools with your existing tech, and achieving proper implementation — all of which are services that leading accounting firms offer.

Tax planning and strategy: Proactive tax planning to minimize liabilities and optimize your tax position at the federal, state, and local levels  is an integral part of modern accounting. This deliberate approach saves money and gives you visibility into your long-term tax picture. As a result, you can minimize business and personal tax liability throughout the business life cycle and reinvest to support business growth.

Performance measurement: Establishing key performance indicators (KPIs) and dashboards to monitor financial health and operational efficiency is another way modern accounting services help your business thrive. With real-time performance metrics at your fingertips, you can make data-driven decisions that are based on more than guesswork.

10 Questions to Help You Find the Right Advisor for Your Business

For business owners looking to reap the rewards that modern accounting can deliver, it’s essential to find the right advisory-focused provider. As you’re evaluating a potential service provider, explore the firm’s approach as well as their ability to help you effectively. These ten questions can help you get a feel for what it would be like to work with the firm and ensure you find a provider who can meet your needs.

1. What kind of specialized skills and experience does your advisory team bring to the table?
2. What specific advisory services do you offer and how do they align with my needs?
3. How many businesses in my industry have you served?
4. Can you provide examples of how you have helped other small businesses grow, mitigate risk, and improve operational efficiency?
5. How do you leverage technology in your advisory services — and how well do you understand the latest technology available within my industry?
6. How often can I expect to hear from you?
7. What types of questions are you prepared to help me answer in day-to-day business decisions and long-range planning?
8. When I have questions, who will answer them and in what time frame?
9. How will you learn about my business and collaborate with company leadership to offer proactive suggestions?
10. What makes your firm ideal for my business, as opposed to others I could choose?

Experience the Advantages of Full-Spectrum Accounting and Advisory Services

A collaborative relationship with an accounting firm that provides an array of advisory services can not only help you navigate challenges but also facilitate sustainable growth and profitability. Contact CRI today and discover how our experienced advisors can turbocharge your small business performance.