Instead of just working with an accounting partner, home builders should seek help from an entire team. Learn the risk management and other benefits of the three-pronged approach.
Many home builders may think that working with one financial partner is enough, such as hiring an accountant. But for a more well-rounded approach to finances, it’s more effective to engage with an entire team, including an accounting team and a client service coordination team.
Finances and taxes can become confusing and overwhelming fast for those in the construction industry, especially when dealing with complex tax code or the loan process with banks. What are the benefits for your business of taking a three-pronged approach to your finance team?
Risk management
One of the most significant benefits of dealing with a financial team instead of just one accountant is risk management. Risks of running a home building business will never disappear altogether, but you should take steps to reduce them as much as possible. To help you mitigate risk, you need the professionals you hire to be available as soon as you need their services.
With a full financial team behind you, you can rest assured that if a person is no longer in their role, you still have the other two members of the team working with you. Whoever fills the third position will have a better opportunity to learn from the other two professionals on the team, shortening the learning curve.
Having more than one person behind your finances will also help you ensure that you have all the proper internal controls in place, related to financial reporting, compliance, and other operational considerations. These are important areas for any business, and in the construction industry, there may be even more fine-print compliance details that you must follow with your finances and taxes.
Internal controls should include things like mitigating risk due to:
- Reporting accuracy
- Fraud
- Protecting assets
Internal controls can automatically detect when a loss is occurring due to fraud, and they help you avoid any errors in your financial records. With your team, you’re more likely to have additional controls implemented because of the professionals’ varying concerns and experience they’re bringing to the table.
Establishing long-term goals
Instead of only reaching goals in the immediate future, home builders need to plan for the long-term. Rather than working with one accountant for one-off services, a team of professionals will help you assess and forecast cash flow, while also taking into account client considerations, such as busy times of the year, market changes, and more.
Without a team, you are not giving your financial health the attention it needs to ensure you’re on the path toward continued growth.
Different perspectives mean well-rounded guidance
Another benefit is that working with more than one person opens up additional opportunities with all the varying perspectives. This allows for a more well-rounded approach to creating a business strategy that works for your business in the current construction industry climate. There will also be more eyes on your records to catch mistakes and to make suggestions that you wouldn’t be able to consider with just one accountant.
More opportunities to learn
Finally, if you work with a team of financial professionals as well as client service professionals, you are giving yourself more opportunities to learn about best practices in both the construction industry and in finance. Tax code is one example of a complex financial issue that you may not know much about.
The additional knowledge from three professionals instead of one will only improve your ability to run your business, as you’ll be able to view problems with a broader range of experience, allowing you to make better decisions and predictions.
No Boundaries Advisors is ready to assemble your team of three, which includes one of our partners, our accounting team, and our client service coordination team. This approach ensures that you can interact with different professionals for different concerns, issues, and planning topics. Each aspect of your business is related, and growth depends on ensuring that everything moves together and balances out. As such, you want to have professionals behind the scenes who can provide the most valuable guidance and expertise possible.
Our team at No Boundaries Advisors offers business planning, accounting, tax minimization, general compliance, and profitability consulting services to help you round out your business strategy and financial planning efforts. Get in touch with us today to learn how we can help your business thrive and address issues that are holding you back.
