Choosing the right accountant for your Chattanooga-based small business can be challenging. While handling paperwork and filing is important, the right accountant can also provide valuable guidance throughout the year. But what really matters is all the decision-making and consultancy that comes six months before the paperwork is actually filed.
So what should you be looking for?
An accountant who starts with cash flow
First of all, you’ll want to look for accountants who start with cash flow. Experienced accountants understand that healthy cash flow is essential to keeping your business operating smoothly, even when reported profits look strong.
Because they focus on cash flow, they can stress test all of your plans and tell you when you might run out of money to pay suppliers and wages. They can also let you know if you’ll have bumper cash coming up for a large investment project so you can plan accordingly.
An accountant who revisits payroll while adjustments still count
Second, you’ll want to look for an accountant who revisits payroll while adjustments are still available. If you’ve run a business for any length of time, you’ll know that wage bills vary across the year due to new hires, bonus plans, and changes to compensation. An experienced accountant can review payroll and withholding during the year and recommend adjustments when needed. This can help spread any necessary corrections across the remaining pay periods rather than creating an unexpected adjustment at year-end.
An accountant who keeps estimated tax payments on track
A CPA in Chattanooga worth keeping also regularly recalculates tax liabilities mid-year and adjusts accordingly. If you are running ahead, they will adjust the amount of taxes you need to budget up, and if you are running behind, they will lower it slightly. The goal is to help you avoid underpayment penalties without losing money that could still be leveraged for your business.
An accountant who asks whether your entity structure fits
An accountant in Chattanooga who asks whether your entity structure still fits your business model is an important part of choosing the right financial advisor. Sometimes, with rising profits or a new partner, adopting a new structure can be beneficial for your organization.
For instance, changes in ownership, profitability, or business operations may warrant a discussion about whether another structure could better suit the company’s needs. An accountant can help you evaluate the potential tax and financial implications before making a change.
An accountant you talk to more than once a year
Finally, you need an accountant that you talk to more than once a year. Many accountants will email you when your returns are due, but they won’t work with you during the year to proactively ask what your business is doing differently. You don’t want that. Instead, you want a relationship with your accountant where they can advise you at each stage and provide you with the most reasonable and sensible guidance.
Talk to the JHM team
If you’re looking for high-quality accountancy services that tick all of these boxes, then get in touch with the team at JHM Certified Public Accountants. Contact JHM to schedule a conversation, or call the Chattanooga office on 423-756-0052.