The Importance of Financial Accountants and Advisors for Your Business
As businesses grow and financial complexities increase, the demand for skilled financial professionals is skyrocketing. However, the supply of qualified accountants seems to be struggling to keep up with this rising demand.
The Accountant Shortage: Unraveling the Challenge
The shortage of accountants is not a new problem, but its impact is becoming increasingly severe in recent years. The reasons for this crisis are multifaceted:
Economic Growth and Complexity: As the global economy expands, businesses have to navigate complex financial regulations, tax laws, and reporting standards. These complexities demand specialized expertise from financial professionals.
Aging Workforce: The baby boomer generation is reaching retirement age, resulting in experienced accountants leaving the workforce. The number of graduates and new entrants into the accounting field is not enough to fill this gap.
Technology Advancements: Automation and artificial intelligence are reshaping the financial landscape, automating repetitive tasks that were once done manually. While technology streamlines operations, it also calls for accountants with advanced skills in data analysis and interpretation.
Changing Education Trends: Fewer students are pursuing accounting degrees, leading to a decline in the number of qualified professionals entering the industry.
When and Where Do You Need Financial Accountants and Advisors for Your Business?
Now that we’ve explored the accountant shortage, it’s vital to understand when and where your business needs the expertise of financial accountants and advisors. Here are some critical scenarios:
Startup Phase: When you’re launching a new venture, having a financial accountant is invaluable. They will help you set up your financial systems, create budgets, and provide insights into financial projections.
Tax Planning and Compliance: Tax laws can be complex and ever-changing. A financial advisor can help your business navigate tax regulations, minimize tax liabilities, and ensure compliance.
Financial Reporting: Whether it’s monthly, quarterly, or annual reports, having an accountant to prepare and analyze your financial statements ensures accuracy and provides valuable insights into your company’s financial health.
Business Expansion: When your business is growing, you need strategic financial planning to manage cash flow, assess investment opportunities, and optimize financial resources.
Mergers and Acquisitions: During business acquisitions or mergers, financial accountants and advisors play a crucial role in conducting due diligence, valuing assets, and assessing financial risks.
Download Your A-Team Checklist
To ensure your business has the best financial support, download our exclusive A-Team Checklist. This checklist will guide you through the essential qualities to look for in financial accountants and advisors, helping you build a solid financial team that drives your business forward.
Click here to download the A-Team Checklist and secure your business’s financial success!
The accountant shortage poses a significant challenge to the financial industry, but businesses must continue to thrive despite this obstacle. By recognizing the importance of financial accountants and advisors, businesses can make informed decisions, stay compliant, and achieve long-term financial goals. Thank you for reading, and we’ll be back soon with more valuable insights from the world of finance!
Every business needs to form a business structure. There several types of business structures such as sole proprietorship, partnership, corporation, nonprofit, limited liability company (LLC), and limited liability partnership (LLP). They all have different income tax implications so be sure to understand the difference and which resonates more with your business.
Cash Flow vs Profit:
Cash flow and profit are both financial metrics that are always used in every business but they are very different from each other. Cash flow analysis is understanding how money is being moved in and out of the business to areas such as operating, investing, and financing activities. Profit is the money that is left over after expenses.
3. Three critical business statements and how it affects your business:
A balance sheet is a summary of the financial balances of an individual or organization. It will help investors to see where the funding should go and help manage.
An income statement is one of the financial statements of a company providing the company’s revenues and expenses during a particular period. It helps to see if your business is making profit or if there’s somewhere that needs to be fixed.
A cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents that come in and out of the company.This helps organize the money that the company is putting in and brings, and analysis what needs to improved.
4. Types of Business Insurance:
Professional liability insurance “covers a business against negligence claims due to harm that results from mistakes or failure to perform”. This will help cover any legal expenses that you may encounter.
Property insurance covers equipment, signage, inventory and furniture for any fire or theft emergencies.
Workers’ compensation insurance should be added to a business’s insurance policy when hiring new staff members. In case of any emergency, it helps cover medical expenses or lost wages in the job.
General liability insurance covers and protects your business from claims such as property damage, copyright infringement, or any other injuries.
Product liability insurance covers your business manufacturing products from claims and damages.
Business interruption insurance will help cover for the income loss from a disaster or catastrophic event that does occur which affects the business.
5. Proper policies, Agreements, and Contracts when hiring new staff:
When hiring a new staff, it is important to let your staff know their rights and benefits. It protects the business from any lawsuits and complaints that may happen. Most of these documents also help manage how much money to withhold from employees’ wages for state income taxes. Here are important documents when onboarding new hires:
SOURCE: Creeana Jefferson, CEO of Capital Accounting Solutions, LLC | Instagram:@cashcowcree
Entrepreneurs
Female entrepreneur working at home office confirming the order on phone.
AgLaunch Accelerators – AgLaunch programs are designed for entrepreneurs who are early in their business formation and who have not raised funding from outside dilutive sources. Companies should be in the ag or ag tech space. Apply by 5/31/22 – https://aglaunch.com/entrepreneurship/
Amazon’s Black Business Accelerator – Dedicated to helping build sustainable equity and growth for Black entrepreneurs by enabling their success as sellers. Grow your business with access to financial support, strategic business guidance and mentorship, and marketing and promotional support. https://sell.amazon.com/programs/black-business-accelerator
Bronze Valley Accelerator – Bronze Valley Accelerator works with venture-bankable startups led by female entrepreneurs and entrepreneurs of color with a preference for those located in Alabama. Participants can be innovating in any industry vertical. Apply by 5/27/22 – https://www.gener8tor.com/gbeta/bronze-valley-accelerator
EmPOWERED to Serve Accelerator – The EmPOWERED to Serve Business Accelerator in coordination with the American Heart Association is looking for a diverse pool of social entrepreneurs and organizations who are driving change through health justice in their communities. Applications will be accepted from social and health tech entrepreneurs, non-profits and for-profits making a health impact. Apply by 6/3/22 – https://www.empoweredtoserve.org/en/capital-access-grant-funding/business-accelerator-program/application-hub
Finnovation Fellowship – Fellowship program helps build leadership and entrepreneurial skills in early-stage social entrepreneurs. Must be US resident – FINN Fellowship requires you to be located in the Twin Cities area during the program term so you can work out of the FINNOVATION Lab space in downtown Minneapolis. Receive a $50,000 stipend. Apply by 5/15/22 – https://www.finn-lab.com/fellowship
Juntos Crecemos Hispanic Digital & Delivery Program – PepsiCo is inviting Latina entrepreneurs who work in food service to apply for eight weeks of personalized expert consultation, including best practices across operations, technology, marketing and digital presence. https://pepsicojuntoscrecemos.com/jefaowned/
Watson Accelerator – The Watson Accelerator is a hybrid program designed for impact-driven entrepreneurs seeking to elevate their ventures with access to a global network, training designed to strengthen skills, and mentorship with seasoned professionals, venture capitalists, and enterprise executives. Through this 18-week program (3 weeks in Boulder, CO and 14 weeks virtual), fellows will engage in courses in areas such as leadership development and applying practical entrepreneurial skills to their ventures alongside a global community of like-minded changemakers. Funding up to $17,500. Apply by 6/1/22 – https://watson.is/watson-accelerator-application/You Glow
Girl Women Entrepreneur Grant – Grant for $10,000 is open to all women entrepreneurs in the US. Apply by July 1. Top 25 will be announced for round 2 on July 8. Top 10 will be announced for round 3 on August 1. Winner announced mid-August. https://www.eatmeguiltfree.com/pages/youglowgirl
Small Businesses
Typical brick building with 5 story houses and small businesses.
Driving Small Business Forward – Ten $25,000 grants will be awarded to Hispanic Small Businesses to use towards the purchase of a commercial vehicle. Apply by 6/17/22 – https://helloalice.com/partners/progressive/
eBay Up and Running Grant – Business sellers will be asked to share details of their small business and how they plan to use the grant to accelerate their growth. eBay is looking to identify sellers who represent a diverse range of backgrounds, bring their unique experiences and inventory to the marketplace, and are committed to their communities and the eBay ecosystem. Grants for $10,000. Apply by 6/10/22 https://helloalice.com/partners/ebay/
Fearless Strivers – Open to black women who are legal U.S. residents (including DC), 18+ and the principal owner of a U.S.-based small business. Grants for $10,000. Apply by 12/31/22. https://www.fearless.fund/strivers
Hello Alice Small Business Grants – Hello Alice is continuing the Year of Small Business celebration by awarding 50 small business owners with $5,000 grants. Apply by 5/20/22 – https://t.co/irmKalmxYH
HerRise Micro-Grant – Each month a $500 micro-grant will be awarded to a for-profit small business owned by women of color. Past recipients used their growth grants for computers, equipment, marketing materials, software purchase, website creation and more. https://www.hersuitespot.com/herrise/
HomeTeam Advantage Small Business Contest with Mastercard – Small business owners in Atlanta, Boston, Los Angeles, and New York City can enter for chance to pitch for $10,000 prize. Apply by 5/15/22 – https://www.mastercard.us/hometeamadvantage/en/home.html
Kapitus Building Resilient Businesses Grant – Create an original video, no more than 2 minutes in length, telling your small business story and how $100,000 can help you continue to write that story. Not for businesses based in CO or VT. Apply by 6/30/22 – https://kapitus.com/brb/
48 in 48 Website Build Hackathon – Social Justice Event – The event is designed to support and promote nonprofits in marketing and technology. They are gathering teams to build websites for nonprofits with social justice missions. If you are interested in either being part of a team or are a nonprofit looking for free website development check the website by June 3, 2022 – https://48in48.org/social-justice-event/
Colocation America STEM Innovation Grant – This STEM Innovation Grant was created to fund programs that inspire and encourage Pre-K-12 students to pursue their interest and curiosity in STEM. Open to nonprofits and school districts and awards up to $7500. Apply by 5/13/2022. https://www.colocationamerica.com/stem-grant/?mc_cid=f6bf62d366&mc_eid=a05d277bb9
Justworks Grant for Nonprofits – Supporting incubators and other non-profit organizations that help underrepresented founders access the fundamentals of entrepreneurship. Grants for $50,000. Apply by 5/27/22 – https://justworks.com/lp/justworks-org
Truist NonProfit Grant – The Truist Foundation supports nonprofits with grants that target leadership development, economic mobility, thriving communities and educational equity. Quarterly deadlines – https://www.truist.com/purpose/truist-foundation/grant-applicationDollar General Youth Literacy Grant – For Schools, public libraries, and nonprofit organizations who help students that are below grade level or having trouble reading are eligible to apply. Grant for $4,000. Apply by 5/19/2022. https://www.dgliteracy.org/grant-programs/?#youth-literacy-grants
Tech Startups
Group of young business people concentrating at their work while sitting at the large office desk in an office together
AWS Impact Accelerator for Black Founders – Designed for U.S.-based Black founders who are the CEO and/or CTO of an innovative tech or tech-enabled startup. Should be pre-seed startups with a solution already built and underway. The program is industry and vertical agnostic, and welcomes both technical and non-technical founders who are leveraging cloud technologies or plan to. Apply by 5/13/22 – https://aws-startup-lofts.com/amer/program/accelerators/black-founders
Comcast RISE – Marketing and Tech Support and Investment Fund – There are separate applications for the marketing and technology services awards and the Comcast RISE Investment Fund. Eligible business owners may apply for either, or both programs. (Note: We have had several students in the program win these awards!) Apply by 6/17/22 https://www.comcastrise.com/apply/
Plaid Accelerate – Plaid Accelerate is a fintech accelerator program supporting early-stage fintech founders who are Black, Indigenous, or People of Color. Apply by 5/31/22 – https://plaid.com/accelerate/
Black Founders & Owned Businesses
AT&T Black Future Maker – Black Future Makers are dedicated individuals pursuing greater possibilities for the greater good. Submit a video of 30-60 seconds, or photo, on your Instagram feed explaining how you are pursuing greater possibilities for you and the community. Grants for $10,000. Apply by 12/31/22 – https://www.attdreaminblack.com/contest
Black Girl Ventures (BGV) Fall 2022 Pitch Program – If you’re a Black/Brown woman-identifying founder in Austin, Chicago, Detroit, Houston, Los Angeles, or Miami, you can apply by 7/1/22 – https://www.blackgirlventures.org/apply-to-pitch
National Black Business Pitch competition – The National Black Business Pitch (NBBP) is a competition designed to connect Black-owned businesses to corporations who seek to expand and diversify their supply chain with new products and services. Winner receives $10,000. Apply by 5/23/22 – https://nationalblackbusinesspitch.com/
Pathways to Black Franchise Ownership – Organization that vets, trains, and partners with individuals from underserved communities to own and operate competitive businesses. They strive to remove barriers to Black ownership entry and accelerate ownership outcomes for those seeking new opportunities to own, manage and expand their careers through foodservice franchisee ownership. https://mfha.net/pathways-to-black-franchise-ownership-program/
Visible Hands – 14-week, virtual-first accelerator will give you the opportunity to work alongside a cohort of exceptional underrepresented founders to build or scale your venture-backed startup. Preference given to women, non-binary and trans people, and Black, Latinx, and Indigenous American people. Apply by 5/13/22 – https://www.visiblehands.vc/apply
Wish Local Empowerment Program – You must be a Black-owned business with a brick-and-mortar shop within the United States and less than 20 employees. If selected for the program, you must join Wish Local (which is free). Grants for up to $2000 – https://www.wish.com/local/empowerment
McBride Sisters SHE CAN Fund in Food and Wine – SHE CAN Fund invests in the professional advancement and career growth of high-potential, professional women, with a particular focus on women of color. Mission is to close the gender and race gap in leadership positions in wine & spirits, hospitality, and finance industries by providing professional development – https://www.mcbridesistersfund.org/grants
More
AT&T Black Future Maker – Black Future Makers are dedicated individuals pursuing greater possibilities for the greater good. Submit a video of 30-60 seconds, or photo, on your Instagram feed explaining how you are pursuing greater possibilities for you and the community. Grants for $10,000. Apply by 12/31/22 – https://www.attdreaminblack.com/contest
Black Girl Ventures (BGV) Fall 2022 Pitch Program – If you’re a Black/Brown woman-identifying founder in Austin, Chicago, Detroit, Houston, Los Angeles, or Miami, you can apply by 7/1/22 – https://www.blackgirlventures.org/apply-to-pitch
National Black Business Pitch competition – The National Black Business Pitch (NBBP) is a competition designed to connect Black-owned businesses to corporations who seek to expand and diversify their supply chain with new products and services. Winner receives $10,000. Apply by 5/23/22 – https://nationalblackbusinesspitch.com/
Pathways to Black Franchise Ownership – Organization that vets, trains, and partners with individuals from underserved communities to own and operate competitive businesses. They strive to remove barriers to Black ownership entry and accelerate ownership outcomes for those seeking new opportunities to own, manage and expand their careers through foodservice franchisee ownership. https://mfha.net/pathways-to-black-franchise-ownership-program/
Visible Hands – 14-week, virtual-first accelerator will give you the opportunity to work alongside a cohort of exceptional underrepresented founders to build or scale your venture-backed startup. Preference given to women, non-binary and trans people, and Black, Latinx, and Indigenous American people. Apply by 5/13/22 – https://www.visiblehands.vc/apply
Wish Local Empowerment Program – You must be a Black-owned business with a brick-and-mortar shop within the United States and less than 20 employees. If selected for the program, you must join Wish Local (which is free). Grants for up to $2000 – https://www.wish.com/local/empowerment
McBride Sisters SHE CAN Fund in Food and Wine – SHE CAN Fund invests in the professional advancement and career growth of high-potential, professional women, with a particular focus on women of color. Mission is to close the gender and race gap in leadership positions in wine & spirits, hospitality, and finance industries by providing professional development – https://www.mcbridesistersfund.org/grants
