Medium Size Business Accounting

As the owner of a medium size business you know that proper accounting is a very important aspect of your business.  You learned a long time ago that the best way to stay ahead of your competition is to control your costs and develop an economy of scale that new entrants to your market will not be able to easily duplicate.

Today, however, we are talking about a different kind of economy and that is the U.S. economy, where it is headed and how it impacts your business. Depending on which network or source you follow, the economy is either rebounding or mired in flat growth.

Here are two contrasting views of the economic recovery.  Again, it really does not matter what “they” are saying, it is how you react and what you do about it that matters.

According to this article in the Wall Street Journal, the economy may be poised for a recovery:  “After four bumpy years, the U.S. recovery finally appears to be on a smoother road. Many economists now predict 2014 will be the best year for growth since 2005, while joblessness is expected to click below 7% next year for the first time since 2008. Houses are selling again, the energy sector is booming and jobs, while not plentiful, are being created at a steady pace.”  

Yet in this Opposite View, Economists Dean Baker from CEPR and Robert Pollin from PERI say that “the U.S. economy remains weak 5 years after the recession despite recent job growth, due to low wages and weakened unions.” 

Probably the best way to view is as what we have come to know as the “New Normal” and how your react to is as a business owner will chart the course for the future of your business.

For most of us on main street, recovery seems hard to understand.  We have definitely not returned to anything approaching the explosive growth prior to 2001 or 2008.  Two catastrophic events, one terror related and the other a financial melt down has taken its toll on main street.

If you experienced losses during and after those difficult times, your accountant has certainly created a write off scenario that is helping some, but there are only so many write offs!  What you need is positive and profitable growth!  If you have not reviewed the past several years with your accountant, mid year is a good time to do that.

Review your numbers with growth in mind rather than taxes.  Try to spot trends comparing this year to previous years.  What segments of your business are growing and which ones are not?  Where are costs rising and what can you do about it. A good accountant working with medium sized companies knows there is much more to accounting than taxes.

They know accounting is the language of business and the best way to “keep score.”  They also know that future opportunities are often hidden in the numbers of the past so work with your accountant to find ways to win no matter what the economy is doing.

If you would like a new perspective on your business, please contact us. We are A & B Accounting and Business Solutions and we help our clients grow in the best of times and in the worst of times.