Franchises have gained steam over the past decade, and it’s not difficult to see why. Entrepreneurial types can appreciate the marketing, product, and financial support afforded by franchisers while enjoying the challenge and excitement that comes with owning one’s own business. With the right franchise, you could be set for life. With the wrong one, on the other hand…well, it isn’t pretty. CPA Ann Irons has worked with all types of small business owners, and has learned what it takes for an entrepreneur to thrive.

As you consider various opportunities, Ann advises you to research industry growth, satisfied (and unsatisfied) franchisees, earnings records, and unit growth. Look for business opportunities that enable you to pursue the things that you are most passionate about. For example, you might look into a franchise for a boutique fitness center, restaurant, or childcare provider. Finding a good match will make it easy to wake up each morning, ready to build your business.

Don’t Forget the Detailed Disclosure Document

Analyzing financial statements is one of the most challenging—not to mention, important—aspects of planning for growth. As a business owner, you know all there is to know about your industry, your target customer, and your market. When you review your income statement, balance sheet, and cash flow statement, you have a general understanding of each item and how the numbers are calculated. Surely you can take it from there, right? Not necessarily, says Ann Irons, CPA, LLC, who provides tax and accounting services in Holliston, MA.

The Difference Between Reading and Analyzing a Statement

The most critical pieces of information on a balance sheet include the value of your assets, liabilities, and what remains after all financial obligations have been met. People often refer to the balance sheet as a snapshot of a company’s financial position because it shows these accounts at the end of the last business day of the specified period. In the capable hands of an experienced Holliston CPA, and combined with data from the income statement and cash flow statement, the balance sheet is more than just a snapshot. It’s your past, present, and future.

“It seems like I’ve spent more time doing menial data entry tasks than I have meeting with prospective clients or catching up on industry news.”

“By the time I finish entering accounts receivable and accounts payable, the sun has gone down and everyone’s in bed. I can’t tell you the last time I sat down to have dinner with my family.”

We’ve had the pleasure of working with some of the most ambitious and passionate small business owners in the area. They have great people, great products, and great services, but even the greatest business suffers greatly in the face of a financial mishap. Ann Irons, CPA, who provides accounting and tax preparation in Bellingham, MA, shares a few of the most common missteps made by business owners.

Placing Too Much Trust in a Single Employee

Many small business owners are heavily involved in the recruiting, hiring, and training of every employee, which is wonderful for creating a tightly knit “family” environment. Unfortunately, first impressions aren’t always accurate, and a dishonest worker slips through the cracks every now. Every year, hundreds of small business owners lose substantial amounts to embezzlement, often forcing the owner to scale back or close shop. This is where hiring a CPA can save you thousands of dollars and untold hours of grief and stress. Entrusting check writing and accounting to a single employee creates a major risk for your small business.