Are you considering expanding your company or taking on a project that is different in scope? Maybe you’re considering expansion to a different region, or offering franchise opportunities.
You may not think financial accounting services would play a large role in project expansion, but it does. Let’s look at 5 ways accurate financial statements can help project expansion go smoothly.
- You’ll want at least one year’s operating expenses in the bank for your existing location before you expand. Accurate cash flow statements and a cash burn analysis will let you see if you have it.
- You’ll want to know the cash burn rate for the new project, so it doesn’t bankrupt your entire company. You’ll also want accurate financial projections of how soon your expansion project will be self-sustaining.
- You’ll want to compare financial projections in your current location with competitors in your new market. And also take a look at how they’re doing to make certain decisions: Does the new region need your services? Is there enough business to go around?
If you find there’s no competition in the market you’re considering, ask yourself, “Why?” Is there a need for your products or services in the new region? What new challenges might you expect to face?
Expanding to a new region brings a host of new challenges—financial and otherwise. Accurate books will help you make an accurate financial forecast and analysis.
Making sure the right financial accounting services are in place will help get your expansion project off on the right foot, as well. If you use a virtual financial accounting services firm like AccountingDepartment.com, your new business location doesn’t matter. You’ll get a company you can trust to manage your books and online financial statements anywhere in the U.S.
