Do Accountants Typically Write Business Plans?
You’re in need of a business plan, so you’re probably here because you’re wondering if an accountant can write one for you.
The quick answer is no. An accountant doesn’t typically write business plans, but they do provide and produce information and advice that is vital to the business plan and its success.
Business plans are usually developed and written by business leaders, so if you own your own organization – that would be you! However, your accountant is there to collaborate with you every step of the way.
Without proper support, business plans can be daunting, so it’s important to surround yourself with the right expertise, such as a qualified accountant. That way, you can be sure you’re making sound decisions each step of the way.
So what role does an accountant actually play when it comes to business plans? Let’s find out!
What is a Business Plan?
A business plan is a document that outlines a company’s goals, strategies, financial information, and other relevant details that are necessary for the success of an organization.
You use a business plan to secure investments, attract potential partners and clients, and provide a roadmap for the company’s growth.
Essentially, it’s the tool that makes people take you seriously and proves that you’ve put some serious thought and analysis into the initial idea. For example, if you try to secure investments without a business plan, you’re likely to be laughed out of the door. Investors want to see how you plan to use their money and what exactly their return will be in the future.
What Does a Business Plan Include?
A business plan generally includes:
- Description of the business
- Analysis of the market
- Description of the product or service
- Marketing plan
- Operational plan
- Financial plan
- Management and organizational structure
- An appendix containing supporting documents such as resumes, leases, and permits
What Purpose Does It Service for a Company?
A business plan serves several purposes for a company, such as helping to define its goals, strategies, and long-term objectives including:
- Outlining steps for achieving those goals
- Providing a roadmap for the company to follow
- Helping to secure financing from potential investors
- Communicating the company’s vision to its stakeholders
- Measuring and tracking progress
- Identifying potential risks and opportunities
What Are Key Components of a Successful Business Plan?
A successful business plan will look like this:
- Executive Summary: A concise overview of the entire business plan
- Company Description: A detailed description of the company’s history, goals, products and services, and competitive advantages
- Market Analysis: An analysis of the target market and a comparison of the competition
- Organization and Management: A description of the company’s organizational structure
- Marketing and Sales Strategies: A description of the marketing required to reach the target market
- Financial Plan: A detailed financial plan with projected income statements, balance sheets, and cash flow statements
- Risk Analysis: A review of potential risks and how they will be managed
- Appendices: Any additional information needed to support the business plan
How To Ensure Your Business Plan Is Effective
- Start with detailed research. Before you create a business plan, it is essential to research the industry and the market you are entering.
- Set SMART goals. These goals should be realistic and achievable
- Identify your target market. Knowing who your target market is will help you create a plan that is tailored to their needs
- Develop an effective strategy. Developing an effective strategy is key to ensuring your business plan is effective.
- Monitor progress. Monitoring progress will help you know if the plan is working or if adjustments need to be made
How Can an Accountant Help With Your Business Plan?
An accountant can help with your business plan in a number of ways by doing the following:
- Determine your break-even point
- Calculate your startup costs, and create a pro forma financial statement
- Create a budget and cash flow statement
- Provide advice on the best ways to structure your business
- Determine the most effective tax strategies for your business
- Review your plan and provide feedback on potential areas of improvement
Who Typically Writes Business Plans?
Business plans are typically written by entrepreneurs, business owners, and senior company executives. The plan should be written in collaboration with the company’s internal team, as well as outside advisors, such as financial advisors and legal experts.
Who Typically Writes Business Plans?
Accountants will provide the following benefits for your business plan:
- Improved accuracy: An accountant can help to ensure that the financial projections and assumptions are based on reliable and accurate data.
- Professional advice: Accountants provide valuable advice on tax and legal issues, such as how to structure the business, how to maximize its tax benefits, and how to comply with relevant laws and regulations.
- Objective perspective: Your accountant will provide an objective perspective on the plan Financial forecasting: An accountant can help to develop realistic financial forecasts, which are essential for the success of any business plan.
- Cost savings: Working with an accountant will allow you to reduce the costs associated with preparing a business plan, as the accountant can provide guidance and advice on how to create a plan most cost-effectively.
How Can an Accountant Help With Your Business Plan?
Legally Set Up Your Business Structure
First, your accountant will determine the type of business structure. This determines how the company is taxed, how profits and losses are distributed, and how the business is managed.
Then, your accountant will file the appropriate paperwork and register the business. Then they will obtain any required business licenses and permits.
Finally, the accountant will need to help open a business bank account to separate business and personal finances.
File the Necessary Paperwork
An accountant files the necessary paperwork by ensuring that all the relevant information is accurately recorded and reported. This includes ensuring that the financial projections are accurate and justified, validating the assumptions, and providing a thorough financial analysis and review of the business plan overall.
Additionally, the accountant makes sure that all relevant tax documents, such as corporate tax returns, payroll taxes, and any other applicable taxes, are accurately completed and filed.
Develop a Financial Plan and Track Your Expenses/Income
Now let’s take a look at what the financial plan looks like:
- Establish the business’s financial goals: This includes identifying what the business needs to do to reach its overall financial objectives. The accountant should take into consideration the business’s current financial situation, as well as its history and projected future.
- Set a budget: Once the business’s financial goals have been established, the accountant can help set an appropriate budget. The budget should factor in all of the expected expenses, such as taxes, payroll, and other costs associated with running the business.
- Monitor expenses and income: It is important for the accountant to monitor expenses and income on an ongoing basis. This will help ensure that the business remains within its budget, as well as identify any areas where expenses or income need to be adjusted.
- Track performance: The accountant can also track the performance of the business’s financial plan by comparing actual performance to the original plan. This can help identify any potential issues with the plan, as well as help the business make any necessary adjustments.
- Create financial reports: Finally, the accountant can create financial reports that provide an overview of the business.
Advise You on the Tax Implications of Your Business Decisions
Your accountant will know the tax system inside out and will therefore be able to advise you on:
- How the tax implications of various business decisions may impact the overall tax liability of the business.
- Which tax strategies and tax benefits you can take advantage of.
- Any recent changes in tax laws and regulations that may affect you.
- How to navigate the complexities of filing taxes, including understanding filing requirements and deadlines.
Provide Support During Audits or Other Legal Proceedings
An accountant can provide support during audits or other legal proceedings for a business plan by providing financial analysis to help ensure the accuracy and completeness of financial records and documents.
They can also help assess the financial impact of potential risks and opportunities and make recommendations for minimizing those risks. They may also provide advice on how to optimize the company’s financial performance and strategy.
Finally, the accountant can review and certify the business plan to ensure accuracy and compliance with applicable laws and regulations.
Act as a Sounding Board for New Business Ideas
An accountant can act as a sounding board for new business ideas by providing advice and guidance on the financial feasibility of the ideas, as well as offering suggestions for how to increase the chances of success.
They can also help to identify potential areas of risk and how to mitigate them. Additionally, an accountant can help to assess the potential costs associated with any proposed business plan and provide guidance on how to manage those costs.
Help You Negotiate Loans or Lines of Credit With Banks
Your accountant is able to help you negotiate loans etc., by providing the necessary financial statements, forecasts, and projections. They can also help ensure that all documents are prepared properly and accurately.
They will also be able to find you the best terms available from different banks and provide helpful advice on the risks and benefits associated with loan options.
Additionally, an accountant can help you better understand the financial implications of taking on debt and can help you establish a repayment plan that meets the needs of both you and the bank.
Provide Valuable Insights on Financial Trends in Your Industry
- Analyzing financial data related to the industry.
- Identifying areas of potential growth or decline.
- Examining historical trends and making predictions about future trends.
- Evaluating the impact of external factors, such as changes in the economy.
- Suggesting strategies to improve financial performance and reduce costs.
- Assessing the risks associated with pursuing certain business strategies.
- Examining the financial feasibility of proposed projects.
- Providing advice on regulatory compliance.
- Developing financial forecasts to inform decision-making.
How Much Does It Cost To Work With an Accountant?
The cost of working with a business accountant will vary depending on the complexity of your business and the services you require. Many accountants charge an hourly rate for their services, typically ranging from $50 to $200 per hour.
Hiring a virtual accountant from a trusted firm such as Finvisor is a cost-effective solution for getting top-notch advice and expertise. You pay for the level of service you require, which is much cheaper than hiring someone full-time, but you still get a fully qualified accountant.
What Should You Expect From Your First Meeting With an Accountant?
Your first meeting with an accountant should be focused on getting to know each other and discussing your needs and goals. You should come to the meeting prepared with a list of questions, as well as any documents related to your finances.
You should also discuss your current financial situation, your short and long-term goals, any tax issues, asset management, and the type of services you may need.
Your accountant will also provide you with an overview of their services and how they will be able to help you.
How Often Should You Meet With an Accountant To Go Over a Business Plan?
The frequency of meetings with an accountant to go over a business plan will depend on the specific needs of the business. Generally, an accountant should be consulted at least once a year to review the business plan and make necessary adjustments.
In certain cases, meeting more often may be beneficial, such as when the business is undergoing significant changes or when the business is in its startup phase.
If you want to know more about how an accountant can be a valuable asset when developing and executing a business plan, get in touch with Finvisor for more information.
To learn more about what we do, or to request a quote, contact us at hello@finvisor.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*
- Last Modified
- May 7, 2023
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