Hello, and welcome back to our blog here at A & N Accounting. This is part two of our blog series about what causes businesses to fail. Although there could be any number of reasons why a business fails, we’ve tried to nail it down to a few of the most fundamental and important reasons. Whether you’re creating your own startup or you’ve been in business for years, it’s never too late to go back to the basics. Read on to learn more or give us a call to get started with our accounting and bookkeeping services.
Falling Behind On Taxes
It could be argued that the reason companies fall behind on taxes is because of a whole slew of other issues regarding the financial well-being of their business. However, many people simply don’t understand why tax planning is important in the first place. Falling behind on your taxes not only means paying more to the IRS but the longer you wait, the more difficult it will be to get out of this situation. At A & N Accounting, we’re experienced at getting in quick, paying years of back taxes, and restoring the financial security of your business. After that, we’ll create a plan to ensure you never fall behind on your taxes again and ensure your company is benefiting from tax shelters.
Failure To Plan Ahead
As a business owner, you need to be great at planning ahead. This has an effect on every aspect of your business from the products or services you offer to your financial success. Forecasting and budgeting are two major aspects of “planning ahead.” Forecasting refers to predicting potential sales growth while keeping business operational expenses low. This is done by analyzing the market and where your business stands. Budgeting, on the other hand, compares your forecasting and actual results to formulate a financial plan for the year. Generally, budgets are created once a year while forecasting can be done more frequently.
Not Investing In Marketing
Aside from actual sales, marketing is one of the most important parts of your business. It’s great having a perfect product and cutting as many costs as possible, but it’s all for naught if you’re bottlenecked by your inability to get enough customers in the door. A great business owner isn’t one that refuses to spend money; a great business owner is one who knows where to put their money. If you invest in effective marketing strategies, your business will see success.
Contact A & N Accounting Today
A & N Accounting is your local financial company focused on financial analysis, tax planning, forecasting and budgeting, business solutions, accounting, and bookkeeping services. Oftentimes, financial issues are at the core of why businesses fail. They either overspend or underspend and don’t understand how to manage their assets or expenses. The good news is that we’re here to help. Simply give us a call today for a free consultation and we’ll start putting together a plan to help get your company on track for financial success.