How a Business CPA Helps You Manage Your Bills

How a Business CPA Helps You Manage Your Bills

Debt is part of operating a business in Concord, NC. You need to buy in order to sell and keep your inventory levels balanced against demand. Sometimes you get caught out and need to borrow against a line of credit or get a short-term loan so you can keep supplying your customers. It’s actually healthy to have some business debt because it can help your business grow. But you want to make sure you keep your debt load balanced to prevent it from getting out of control. If you’re not sure you can do this on your own, you can get help from a Charlotte, NC, business accountant and have a valuable ally in the management of your debt. Here’s how a business CPA helps you manage your bills.

Advise You on Your Optimal Debt Load

The amount of debt your business can take on is balanced by your average sales and income streams. The business accountant looks at your historical sales, your fixed costs, and other miscellaneous expenses in order to determine how much money is available to take on more debt. You don’t have to necessarily take on the debt at that time, but you know that you have the ability if need be.

Help You Decide if You Can Make a Major Purchase

Sometimes opportunity knocks in the form of a new customer who would like to order more of your product than you can currently produce. In order to take on the new customer, you need to buy more equipment. The increased sales will pay for the equipment, but you need to break down how long it will take to recoup the cost and make a profit after taking on the customer. This is where your Charlotte, NC, business account comes into her own. She’ll determine if the opportunity is a good one, how much potential profit is there, and if you have the ability to handle payments on the equipment until the money from the new customer starts to arrive.

Restructure Your Debts

Debt can get lopsided in the form of high interest rates or lines of credit that have been pushed to their limits. You wind up paying more towards interest than you initially thought you’d pay and service your debt for longer than you should. More of the business income gets caught up paying the debt instead of being put to other good uses such as expanding the business.  A business CPA can help you find ways to restructure debt and get outstanding balances into payment plans with lower interest rates. You’ll eliminate old debts and free up money for better things.

Helps You Monitor Your Expenses and Revenues

When you’re running a business, you have the goal of having more revenue than expenses in order to turn a profit. It’s a balancing act that’s not always as easy as it looks. You may spend more than you take in during a given month and not have the income to cover the expense right away. Or you’ve had a capital expense and you didn’t have enough in reserve to cover the cost. This is where a business CPA becomes an invaluable partner in your business. She monitors your monthly expenses and tracks them against your monthly revenue to keep you out of trouble. If she spots potential trouble, she can alert you and help navigate you through tight financial situations. On the other hand, she can let you know when you’re experiencing increased revenue and suggest how to use the surplus.

A Charlotte, NC, business accountant can show you how not to be afraid of taking on debt and help you keep it manageable. In turn, you learn how debt can be of benefit to your business and even help it grow.