An accountant is not just someone that you should turn to at tax time. They can also offer you guidance and advice all year long that will help you consistently improve how your business operates, take advantage of tax saving opportunities and increase your profits.
Here are a few ways that an accountant could help you:
- Available Tax Credits: There are a lot of tax credits that are available to builders that you may not be aware of, but your accountant would. For example, credits and deductions for placing in service energy-efficient properties.
- Workers’ Compensation Savings: An accountant can check to be sure that your insurance agent is helping you save money through credits, such as the Drug Free Workplace Credit, Safety Credit and Contractors Premium Rate Credit.
- Updating Overhead Percentages: Many small increases to overhead costs over time can result in a large increase to the total overhead percentage that is applied to each job. Updating this figure ensures you always bill your jobs with the appropriate amount of overhead to be sure you are making enough profit.
- Work on your Accounts Receivable Collections Weekly: Checking on your receivables weekly allows you to obtain your payments faster, instead of reviewing them monthly. Create invoices and requests as soon as contractual requirements have been fulfilled to speed the recovery process.
- Set Up Rolling Cash Flow Projections: Having a cash flow projection can help you see how your business is performing financially compared to how you expected to perform. An accountant can help you establish a 12 month cash flow projection that you are able to update weekly to see your actual cash flow as the year progresses.
There are many ways an accountant can offer assistance and insight into how to improve your profitability. If you do not have a year round accountant to work with you should consider meeting with one to see if it right for your business.