Tax Advisory Services Michigan, Ann Arbor, Woodhaven

Advisory Services | The Analytical Accountant

Knowing and understanding a clients’ finances, should put an Accountant in a position to offer advice and insight into the most profitable segments of their business and areas where costs may have increased that deserve attention.  This is an aspect of Accounting known as Managerial Accounting.  Compliance is necessary, but Owners/Managers/Operators and Partners also need data to understand what parts of their business offer the biggest return on their money, time, and sweat equity.

As the saying goes, cash is king, and every business should have a cash management plan that draws from sales, debt servicing, capital expenditures, financing activities and cash expenses so that a clear picture emerges as to the amount of cash an organization requires to meet its objectives. Issues/shortfalls are often a symptom for larger problems. Outside of obvious issues such as sales downturns, manufacturers and service providers need to understand their costs! Unit costs to manufacture and deliver (1) “widget” or complete and deliver a service are often misunderstood or not considered. A business that mis-costs its products or services is in jeopardy of either losing profitable business opportunities (when they quote a price higher than necessary to cover their inflated unit costs) or accepting jobs or contracts (at reduced pricing because their unit costs are greater than they believe). The net result is the business is either non-competitive on price-lost business or their operating performance suffers-lost profits. This is where a lot of Accountants struggle, because they’ve never been exposed to areas outside their primary training-compliance. My professional career has given me a unique perspective.  I’m an Advisor because I’ve lived it.

Extracting data from QuickBooks can highlight aspects of a business that a client was not previously aware of. Associating direct costs to each revenue stream enables the owner to understand the possible outcomes for profitability if their sales volume increases by a given percentage. This variable cost/sales volume relationship helps owners to understand the ramifications of sales fluctuations on their business operating performance.

Business owners need to understand various organizational structures and the financial and tax implications that are attached to each. If you’re a start-up that needs help with organizational issues-creating the proper type of entity and operating agreements, we can help.

Accounting
Accounting can be divided into two distinct areas: Financial Accounting involving Compliance and Managerial Accounting-data that Owners/Operators/Managers and Partners need to make informed, relevant decisions. We can help with both.
Accounting Services
Advisory Services
We're able to provide expertise in several areas of your business in addition to Accounting, Bookkeeping and Tax-related services. We can claim this, because we’ve lived it. Give us an opportunity to gain your trust. We want to become your full-service Advisor.
Advisory Services
Bookkeeping
Bookkeeping is the process of inputting, classifying, error correction and maintaining accounting records. Understated or overstated accounts? QuickBooks workflow issues? Problems, large or small, simple or complex, let us help.
Bookkeeping
Tax Services
Whether it's Tax Planning, Tax Preparation, or Tax Resolution, small businesses need help navigating the complexities of the Tax code. Contact us so we can discuss your Tax-related issues or needs.
Tax Services

Request a Consultation:

The Analytical Accountant

Mike Faremouth, Owner/Principal
Woodhaven, MI.

734-778-8429