The Global Financial & Leasing Services (GFLS) team works with business owners across the country who operate companies in a wide variety of industries. While their products and/or services can be quite different from one another, there are universal truths that apply to all businesses. One is eventually the time comes that working with outside professionals is a must. Doing so gives you more time to focus on running your business, which is what you do best, and it gives you the expert insight needed to help your business grow.
Those outside professionals include marketing, sales, insurance, human resources and more. GFLS’s expertise is in equipment financing, which ultimately is affected by the numbers—your accounting.
Working with companies, both big and small, to finance their equipment, our team understands the business growth cycle. Startups and small companies often rely on one in-house employee or the owner to handle the finances. Sure, accounting software and cloud services make it a bit easier, but when combined with other duties, it quickly becomes too much. Customer service and revenue generation are top priorities, so accounting often gets placed on the backburner.
It’s understandable, but it’s avoidable. If you don’t already, make 2022 the year you work with a professional accountant (CPA). There are numerous benefits gained out of this relationship.
You’ll “know your numbers.” No doubt you’ve heard the phrase “let’s run some numbers.” Business owners must know their numbers, and you’d be surprised how many don’t. We’re not talking general balances and such, but rather knowing the numbers and how they affect business today and long term.
You’ll be prepared when the time comes to finance or lease equipment. Your numbers pertain to obtaining equipment because an equipment financing lender will need to see your financials to put together a financing/lease plan that works best for you. Having an accountant means that this is a much easier request to fulfill compared to you spending time getting your books in order.
You’ll be able to take advantage of tax-saving strategies. Most business owners aren’t tax specialists, so you could be leaving money on the table. CPAs are experts in developing short- and long-term tax strategies specific to your business and industry and help ensure you are taking your due deductions. In terms of equipment financing, a CPA can help your business benefit from tax considerations, like the Section 179 deduction, as well as determine the implications of an operating versus capital lease.
Read more: How do capital lease tax advantages compare?
You’re more likely to attract new partners or buyers for your business. New partners or buyers are considering making a financial investment in your business. Initially, the nature and/or success of your business is likely what attracts them. Eventually, the conversation will turn to the numbers. The numbers will tell a story themselves, but having an accountant behind them speaks volumes about the serious way you run your company and can bring peace of mind to the decision process.
There’s a strong argument that in a chicken-egg contest, your equipment financier and accountant are the two outside professionals who can guide and support your businesses growth to the point where it makes sense to hire other professionals full-time. Which comes first? The accountant. Not having your financials professionally buttoned up is a red flag for new partners, buyers and equipment purchase or lease financing companies, like GFLS.
If you’re considering financing equipment, talk to your accountant and talk to us. As a direct lender, GFLS is able to approve credit with our in-house funds, and the typical turnaround time is 24 to 48 hours. When other lenders say no to financing equipment, GFLS can often say yes, so tell us about your financing needs and let’s take a look at the numbers.