When you think of finance and its place in your small business, what comes to mind? Like many of your fellow entrepreneurs, you probably think of it strictly as a means of short-term purchasing and collection. At the office of Ann Irons, CPA, we believe that your company’s financial statements have strategic value. If your strategic vision includes the possibility of a merger or acquisition, you’ll need someone who understands your position, appreciates the value of financial reporting, and shares your passion for success.

Due Diligence and Risks of “Going It Alone”

In our experience, even business owners who are knowledgeable about GAAP struggle to fully understand the implications of M & A accounting, especially given the unique requirements that differ radically from GAAP for general compliance and reporting. Four areas in particular are important in matters of due diligence.

Gross Margin and Inventory Focus

As the owner of your own business, you bear the responsibility for serving your customers, your suppliers, your employees, and even your family. When everything and everyone depends on you to succeed, organization and time management skills are critical. Not tech-savvy? No problem, says Ann Irons, CPA. Irons, who has worked with countless family-owned and small businesses in Bellingham, MA, shares her list of must-have apps.

In any business, relationships are everything. For a legal professional specializing in real estate law, some of the most important relationships aren’t necessarily the ones that generate profits. Establishing a mutually beneficial, long-term relationship with a bank or other lender offers financial stability and the ability to capitalize on opportunities as they arise. Ann Irons, a CPA, explains how real estate lawyers in Bellingham, MA can foster healthy relationships with financial institutions.

Ask the Right Questions

Each practice has different needs, just as each lender has different policies and specialties. Choosing a financial institution as a business requires you to look for different services and benefits than you might consider when choosing a bank for, say, a personal checking account. As you compare your options, keep the following questions in mind:

• Does the institution employ a banker who understands the unique needs of a law firm?
• Is there a possibility that the bank could also serve as a source of referrals, i.e. Does the bank provide services affecting real estate transactions, such as mortgages or new home loans?
• How flexible are interest rates?
• Can I make deposits after business hours?
• Does the bank handle IOLTA (Interest on Lawyers Trust Accounts)?

One of the most common misconceptions about CPAs, or certified public accountants, is that a CPA really isn't so different from any other accountant.

It's an easy mistake to make, but it could cost major headaches for your small business further down the road. Ann Irons, CPA, answers clients' questions about what it takes to become a CPA and why you shouldn't trust your small business finances to just any accountant in Bellingham, MA.

Freeing up cash flow is a priority for many small business owners, especially when business isn’t quite booming. On one hand, it takes creativity and resourcefulness to do more with less. Then again, it’s risky to focus on the dollar amount saved today instead of considering the long-term consequences. Ann Irons, a CPA in Bellingham, MA, says that several of her clients have tried a similar approach by trying to tackle accounting and bookkeeping services without professional help, hoping to save money. Before you decide to go it alone, ask yourself whether any of these scenarios sound familiar.

Lessons Learned the Hard Way

Over the past three months, Martin’s landscaping company has been so busy that they’ve actually had to turn clients away. He applies for a loan to fund an expansion, which will require investments in equipment, marketing, and workforce. Demand is high and the venture is sure to be profitable, so Martin is dumbfounded when several lenders reject his application.

With 2013 sales in excess of $1 billion, it’s safe to say that business is booming on Etsy. Sellers operate their own online stores on the site, where they offer handmade, vintage, and crafty goods and supplies.The growing popularity of DIY and visual inspiration sites like Pinterest have created incredible opportunities for crafty and creative types to profit from their handiwork. Once you've established a favorable reputation for yourself and your goods, generating sales comes easily. CPA Ann Irons, who offers bookkeeping services in Bellingham, MA, advises you to take a proactive approach to managing your store’s finances.

Employee and Independent Contractor: Know the Difference

Here's a key difference between entrepreneurs and everyone else in the world: When matters become so complex that a single individual can no longer manage business affairs on their own, the Average Joe goes into panic mode. Business owners, on the other hand, take a dramatically different viewpoint. This isn't a problem--this is growth! It's exciting, an indication that you're doing something right. Now, this is where things get tricky. Growth is great, but it's precious. You can't bring in just anybody to cultivate and manage this growth, especially where your finances are concerned. Ann Irons, a CPA in Bellingham, MA, explains your options.

Despite recent initiatives by the Small Business Association, entrepreneurs from across the country still face significant challenges in securing a loan for their small business. Only a small percentage of loan applicants actually secure approval. For everyone else, tracking down capital proves more difficult. The California Reinvestment Coalition recently conducted a study of small business owners and small business loans in the state of California. The results? Let’s just say that it doesn’t look good for female entrepreneurs, says Ann Irons.

Irons, a CPA in Bellingham, MA, points out that while the study focused only on small businesses in California, the results are fairly representative of other states. Since 2007, the numbers of small business loans granted to female-owned businesses has plummeted by 70%. Because competition for funding is so tough, even a financially secure entrepreneur will not likely be approved for a loan. Lenders often cite the age of the business as a reason for denying a loan, which obviously presents challenges for female-fronted startups. Five years seems to be the standard, but this varies in different areas of the country.

Two Things Female Entrepreneurs MUST Do Before Applying for Loans