As the new year approaches, many green industry businesses take the opportunity to review their operations and make improvements. If you operate a green industry business, setting up a new accounting system is a crucial step in ensuring financial success in the year ahead. It may be time to work with an accounting team that is specialized within the green industry. At Cycle CPA we understand the specific challenges and opportunities of the industry, and we optimize your financial management through this perspective. We work with solo operators, 8 figure companies, and everything in between! Below are a few reasons why a green industry focused accounting team may be right for you:
1) Green Industry Metrics and Insight:
Benchmarking: comparing your numbers to industry averages will help to expose areas within your business that you can improve on. We develop our benchmarks from accurate financial reports, developed by our internal team of accountants. This ensures that the benchmarks are correct, even down to the service line. We benchmark many financial metrics (not just in the Profit & Loss Statement), including ratios found within the balance sheet.
Key Performance Indicators (KPI’s): KPI’s are metrics that are important to track. Each industry has it’s own essential KPI’s and data that needs to be assessed regularly, which gives insight into the performance of the company. You can use this data to hold your team members accountable, and it helps to quantify goals for your company as well.
Cash Flow: Different seasons bring different sales levels and cash flow. Developing a cash flow forecast based on market factors, assumptions, goals, historical data, projects in the pipeline, and more, can help you stay above the critical cash flow level.
2) An Accurate Accounting Foundation:
Accounting Software’s: At Cycle CPA we are not tied to any specific accounting software, but most of our clients utilize QuickBooks Online or QuickBooks Desktop. An accounting software allows for improved efficiency and structure.
Green Industry CRM’s: We are familiar with the financial side of all the popular customer relationship management (CRM) software’s in the green industry, and how they relate to accounting software’s. This allows us to prevent common mistakes, whether you utilize a basic CRM like Yardbook or an advanced CRM like Aspire Software (with the intensive month-end close process)!
Fixed Asset Management: Are you accounting for your equipment, vehicles, and other long-term assets in your estimates/pricing? It starts with properly tracking and managing the purchase, use, and disposal of these assets in your accounting system.
Month-End Close: This includes the review of transactions, reconciliation of accounts, review of financial statements, journal entries, and more! You could be missing important details if you are avoiding this crucial accounting step.
3) Monthly or Quarterly Advisory Meetings:
Virtual Format: Our meetings are completed via zoom call, which allows for all parties to view the data and reports. Never miss another accounting meeting, many of our clients even fit in meetings in their trucks in between jobs!
Green Industry Guidance: Generalist accountants go from working on a restaurant’s financials, to a lawyer’s financials, then to a lawn care business. This makes it difficult for them to see patterns and common pitfalls that green industry businesses face. At Cycle CPA we live and breath the green industry, and use this combined knowledge in accounting to pass on advice to you.
Support to In-House Accounting/Administrative Team: You may not have hired your in-house administrative employee to handle high level accounting duties. All of our service offerings include unlimited support for your in-house team!
By taking the time to set up a new accounting system for your green industry business, you can start the new year off on the right foot and set yourself up for financial success. Proper financial management is essential for the long-term success of any business, and taking the time to get your finances in order can help you achieve your goals and grow your business. Schedule a call with us here to see how your business could benefit from our services at Cycle CPA.