My Business is Growing: What Do I Need to Know?

Congratulations—your business is growing! This is a wonderful stage of the business life cycle. As a business owner, there is no greater satisfaction than seeing your idea take root and evolve into your vision.  

What Do You Need to Know? 

Here are five things to know during this critical phase of a business: 

1. Raise Funding

This phase will require capital expenditures. Additional resources, including labor, equipment, facilities, and continued research and development, all require cash. Developing a business strategy around managing debt and equity investments is critical. 

2. Optimize Cash Flow

As you raise funding and grow profits, it’s essential to monitor how the money is spent and whether a portion is reinvested into the business. Cash flow and cash projection analyses can aid owners in decision-making and planning. 

3. Taxes, Taxes, Taxes

As profits grow, so do taxes. It is crucial to be proactive in tax planning for each year ahead. Ensuring estimates are correctly calculated and paid, you don’t need to worry about being hit unexpectedly with a considerable burden each spring. Also, reevaluating entity structure, method of accounting, and regulation changes can help minimize tax effects and improve cash flow. 

4. Compliance

Transitioning to a large employer comes with additional compliance requirements. Labor laws, workplace safety, and data privacy are all key areas of focus during this stage of a business cycle. 

5. Process Refinement

With an increasing labor force, it’s crucial for a growing business to establish financial policies and procedures. These will assist in preventing and detecting fraud while also improving efficiency. With more stakeholders (banks, investors, bonding, etc.) comes increased scrutiny over internal controls.    

Rely on the Experts at Maner Costerisan  

Does your accounting team have the skills, knowledge, and expertise to meet these fresh demands of a growing business? A fractional CFO can help bridge that gap between a startup or small business and a thriving enterprise.  

The experts at Maner Costerisan provide these services and are there to help take your business to new heights. Contact our Outsourced Accounting department by emailing us at maner@manercpa.com.