What Manufacturers Should Look for in a Financial Reporting Partner
As the end of the year approaches, many manufacturers find themselves considering a new financial reporting partner. With entity tax returns due on Sept. 15 and extended individual tax returns on Oct. 15, now is the critical time to evaluate whether your current financial reporting partner is meeting your needs. The right partner will help you feel prepared for the year ahead, guide you through business and tax planning for the current year and the next, ensure a smooth year-end audit and tax process and help you plan for the near future.
Why You Might Need a New Financial Reporting Partner
There are several reasons you might be looking for a new financial reporting partner. Perhaps your current accountant is not providing the foresight and long-range planning you need, or they’ve made mistakes that have cost you. Maybe the firm has experienced turnover or is overextended, leaving you feeling neglected. Alternatively, you might be seeking the security that comes with working with a larger firm that has more resources and expertise.
When making a change, you must find a partner you feel comfortable with and trust. The relationship between a manufacturer and their financial advisor is deeply personal, involving the sharing of sensitive information. If you don’t feel a strong connection with your prospective partner, your search is not over.
Key Qualities to Look for in a Financial Reporting Partner
Choosing a financial reporting partner is not just about dollars and cents. While cost is a factor, it should not be the primary driver of your decision. Instead, focus on finding someone who understands your business and can offer a broad range of services to meet your needs.
Most accountants focus on compliance, which may suffice for companies that are stable and not experiencing significant growth. However, if your company is expanding, acquiring new businesses or launching new product lines, you need a financial partner who looks ahead, offering real-time advice and helping you plan for the future. This forward-thinking approach is critical for proper planning, execution and reporting in your books and records.
Look for a partner who can assist with cash flow projections, set up reporting systems and provide insights that allow you to understand your business's current state and future needs. This proactive support can make all the difference, particularly in complex situations like acquisitions.
The Importance of a Comprehensive Suite of Services
Manufacturers often face complex financial reporting challenges, especially after a business acquisition. You’ll need a partner who understands the technical accounting rules, can provide necessary valuations and advises you on how your balance sheet should look. Not all accountants have this level of expertise.
A financial reporting partner who offers a full suite of services is invaluable. For example, if your controller is suddenly unavailable, your partner should be able to provide temporary services, such as a fractional controller, to keep your books and records up to date. This is much more efficient than scrambling to find temporary help on short notice.
Additionally, if you need a valuation for purchase price accounting or require due diligence services for an acquisition, a partner with a valuation department is essential. If you’re dealing with international transactions, expertise in international tax structuring is crucial to ensure you’re setting up your business correctly from the start.
Finding the Right Fit
When selecting a financial reporting partner, you’ll want to set clear goals and understand the services you need most. A partner who offers multiple services under one roof can save you time and stress. If your current firm lacks certain expertise, you may need to bring in additional advisors, which can complicate the process. A larger firm with a broad range of expertise can provide a seamless experience, ensuring you have the support you need when you need it.
In the fast-paced manufacturing world, with its many moving parts, having a financial partner who can offer comprehensive services is a no-brainer. Don’t settle for a partner who only focuses on compliance. Look for one who can guide you through growth, acquisitions and the many challenges your business may face, ensuring your financial reporting is as dynamic and forward-looking as your business.
Next Steps
At CBIZ, our financial experts are equipped to assist with all your tax, accounting and advisory needs. With a deep understanding of the unique challenges facing the manufacturing industry, we provide tailored solutions to help you succeed. Connect with our team today.
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