Consultants provide professional advice to organizations in different fields, such as management, public relations, architecture, and more.
In fact, the consulting services industry was estimated to be worth $132 billion in 2020, with demand booming as businesses come back from the pandemic halt. As such, many consultants are busy managing their clients’ work — and end up neglecting their own business.
Hiring finance professionals like accountants can ease your burden as a consultant. Accountants are trained to gather, organize, and report financial data on a daily basis for their clients. They monitor transactions, balance accounts, and keep you compliant with various laws and regulations. They also manage your tax returns; certified public accountants, in particular, are in high demand because they help prepare mandatory audited financial records and can represent clients before the Internal Revenue Service (IRS).
Accounting services can free up your time, so you can grow your consultancy and drive revenue. Here are a few things a reputable accounting service can assist you with:
Getting your firm off the ground won’t require a large capital investment, but you do need an exact picture of your financial capabilities. Where is your funding coming from? Is it enough to stabilize your business so you can attract and retain clients? Here, you will need the services of professionals who can look at your financial data for trends and utilize the resulting information to guide your decisions. These trained finance experts and analysts are in high demand, with jobs expected to increase between 7% and 14% in the coming decade; their skills can help keep your budget balanced for future spending. You can work with a financial analyst on your consultancy’s feasibility, as well as an accountant to determine your business structure and ensure government compliance.
It’s not sustainable to do everything for your consultancy firm alone, especially if you’re pursuing growth. Eventually, you’ll need to hire interns, assistants, researchers, associates, and advanced analysts as you expand. To keep your business running smoothly, your staff should be paid correctly and on time. For instance, management analysts support clients in improving organizational efficiency and make a median wage of $93,000. Can you afford to give them a competitive salary? This is something an accountant can help you decide. Accounting services not only oversee payroll and payment processes, but they also provide information on providing fair pay for your team (or outsourcing tasks as an alternative).
Time-tracking and billing
Time-tracking and billing are processes where you can’t afford to have anything fall through the cracks. As a consultancy firm, hours rendered to clients are your bread-and-butter, so you don’t want to forget to invoice them for your services — or risk hurting your expected cash flow. Accounting services are dedicated to ensuring you receive the right payment on time, mitigating revenue loss, and accelerating cash collection. They can also inform you on the best strategies for pricing, so your rates are profitable vis a vis your expenses, but still attractive to potential clients.
Bookkeeping and taxes
Bookkeeping and taxes are administrative tasks that focus on the legal side of your consulting business. To avoid trouble with the IRS, your books need to be in order; you also need to pay the right taxes according to your state and your business structure, even if you’re still self-employed and consulting alone. Accounting services can process your taxes, estimate payments, and look for possible deductions. They also accomplish all financial reports and submit all requirements to the authorities, leaving you free to run your day-to-day operations.
To summarize, consultants and entrepreneurs need accounting services so they can monitor their business goals and measure progress. Accounting services can forecast cash flow, determine areas for growth, cut down unnecessary expenses, and identify hiccups before they become a problem. We understand how important it is for consultant firms to have strong financial services and can meet your bookkeeping and accounting needs easily with our team. Let Reconciled help your business flourish. Contact us today to learn more.
Article by Rebecca Julianne