Gary Galstyan is the Founder/CEO Accountant of Rockwell Capital Group and an accounting and tax services expert.
For years, accounting has been seen as a back-office function focused on compliance, managing financial records and ensuring tax returns. However, in recent years, accounting has evolved into a strategic asset that offers insights that drive growth and innovation.
In my financial and accounting services company, we have moved from compliance orientation alone to becoming a reliable strategic partner to unlock strong opportunities.
So how can we view accounting with different light-driven growth? Let’s explain using examples of the companies we worked with.
Why it’s risky to see accounting as a cost center
Some companies mistakenly view accounting as “necessary evil,” an inevitable expense rather than a strategic resource.
I recall working with the medium-sized e-commerce business that first hired us to bookkeep and file our tax returns. Diving deep into their finances revealed the inefficiency of their inventory management systems, resulting in a major profit leak. With predictive analytics and adjusted recommendations, they increased their profits by 20% within a year.
Important insight: Don’t treat accounting as just a cost center. Instead, use it as a strategic resource to satisfy actionable insights.
Real-time data is key to decision-making in an agile business
Static historical reports are no longer sufficient. Companies need real-time financial data to make prompt and informed decisions. For example, one SaaS client came to us for standard compliance services and struggled with the unpredictability of cash flow. We have introduced cloud-based accounting tools and built dynamic dashboards. This gave us access to real-time financial metrics. This insight has enabled the leadership team to coordinate their marketing efforts during the recession and maintain steady growth.
Key insights: Real-time financial data allows your business to pivot quickly and seize new opportunities.
Navigate uncertainty through forecasting and scenario planning
Accounting is more than just tracking past performance. It’s about looking ahead again.
One manufacturer planned a major expansion. Economic uncertainty hesitated them, but through financial modeling and scenario planning, they were able to assess the risks and opportunities of the planning. This clarity gave them the confidence to secure funds and move forward. This expansion doubled market share in just three years.
Key Insights: Scenario Planning helps businesses navigate uncertainties and make informed decisions.
Drive growth with strategic tax plans
Tax compliance is essential, but strategic tax planning can be a key growth driver. For example, we have helped renewable energy startups uncover government incentives and tax credits that they had not considered. Restructuring our operations reduced our tax liability by 30%. They reinvested additional funds in research and development, which accelerated innovation efforts and market positioning.
Key insights: Strategic tax planning can unlock resources for innovation and growth.
Strategic advantages for harness technology
Technology is revolutionizing accounting. Automation, artificial intelligence, and machine learning improve accuracy and free up time for strategic tasks.
For logistics clients, adopting AI-driven auditing tools reduces manual adjustments by 50%. Their CFOs can focus on growth initiatives rather than on daily tasks.
Key insights: Use technology to streamline operations and focus on strategic priorities.
Expert Insights Hold Value
Technology is a powerful enabler, but the human element is important. Interpret data and align it with the unique goals of the company requires experience and insight. When incorporating your technology, reach out to experts if necessary. They can provide strategic interpretations that promote real value.
Accounting as a growth driver
Companies that accept accounting as a strategic feature, as well as compliance tasks, set themselves up for long-term success. Our company’s journey demonstrates that combining strategy and compliance creates immeasurable value. If your current accounting services focus solely on compliance, it may be time to rethink.
Taking a strategic approach allows you to meet regulatory requirements and unlock new opportunities for growth and innovation. Accounting is not just numbers when done correctly. It’s about moving your business forward.
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