Think of your business plan as the blueprint of your business – they encapsulate everything you know and understand about your potential market, outline your ‘big picture’ goals and how you plan to achieve these goals. A business plan is a vital component in your business’s growth journey and success.
A well structured business plan can help set targets, measure performance and reach your benchmarks. While you, as the founder, should have primary responsibility for writing the business plan, that doesn’t mean you should go it alone. Many businesses employ contractors or freelance professionals to help them write or revise business plans.
What Value Can an Accountant Add to Your Business Plan?
If you are wondering if your accountant should be involved in your business plan, the short answer is yes. By employing an experienced accountant, you can reap the benefits of their financial knowledge from the start, reducing undue stress and saving you time and money in the long run. By building a relationship with the right accountant, you can transform your financial forecasts into long-term value for your business.
No plan, no finance
A business plan is crucial when seeking funding for your business, especially in our current economy. It will significantly impact any stakeholder’s decision to support your venture and will determine whether you secure the necessary funds to start your business.
While a business plan won’t necessarily guarantee you a loan or investment, without one you are extremely unlikely to be approved. Seeking the right advice early in the process can help make sure your business plan is clear and transparent, contains achievable outcomes and has a better chance at securing funds and staying on track after capital injection.
An objective opinion
Your accountant doesn’t have ‘skin in the game’ to the same degree you do. That means they can see your business for what it is, as opposed to the more optimistic appraisal you may give it yourself. An accountant can accurately assess your existing or prospective finances and help you create a plan that identifies and addresses prospects and potential problems.
An accountant can also develop a statement of purpose, conduct a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, clearly outline your goals and present your business plan in a way that will best appeal to your stakeholders.
Professional expertise
Your business plan should be a realistic overview of your immediate and long-term business objectives and projections. They need to establish an operating framework that outlines a well-defined and systematic route to sustainable growth and success.
Tailoring your business plan to suit your specific audience is crucial and a skilled accountant will be well-versed in identifying an appropriate content, length and complexity for your plan, as well what sections require professional evaluation. Their experience will enable them to understand how your plan should integrate all your structural, organisational and financial strategies and objectives.
Financial insight
The financial status of your business is the most important element in understanding and determining its success, so having it professionally reviewed is highly recommended.
Many business owners venture into forecasting without a solid grasp of finance or accounting principles. While their intentions are commendable, their lack of expertise often leads to skewed structures, disproportionate figures and inaccurate forecasts. It is at this point where they hire an accountant to navigate this financial maze, rectify data discrepancies and set them on the path they should have been on to start with.
What Comes Next?
Your working relationship with your accountant should extend beyond creating your business plan. Effective financial planning is pivotal for not only monitoring, but also realising the financial projections articulated in your business plan.
Once you’re up and running, it’s always good practice to have an accountant on call. As your business grows and evolves, through taking on new staff, entering into partnerships or accruing debt – your accountant can assist you with ongoing business and tax strategies and enhance your long-term prospects. You should aim to check in with your accountant at least once or twice a year to update your tax strategy and go over your finances, expenses and the receipts necessary for accurate taxation.
Trust Vital Addition for Strength in Numbers
Your business is your livelihood, so make sure you are collaborating with someone who knows what they’re doing and is qualified to do it. At Vital Addition, our certified accountants act as strategic business partners who share your vision and are equipped with the skills to help you realise your financial goals. Reach out to learn how our strength in numbers can support your business.