Does Specialization in Accounting Matter?
We consider every business a living breathing entity that grows and evolves over time with different needs and challenges, so let me first pose a question. Would you ask a general surgeon to identify and fix an integral heart condition or would you opt to have a surgeon that has a heart-related specialization?
General accounting expertise is valuable and something that we strongly believe is an asset to every firm. We have though seen a growing need within the accounting industry for specialization and focus on specific industries. Not only have we seen a growing need, we have also seen impactful benefits for our clients with specialized accounting needs.
What are some industries that can benefit from specialized accounting and taxation laws? The healthcare industry is absolutely one of those industries with a plethora of unique taxation laws, payroll taxation benefits and accounting pitfalls. As you dig deeper into the healthcare accounting segment, there are even more caveats within different niches of the industry that impact the classification of different assets, capital investments, operational expenses and more that all impact the bottom line of your balance sheet. These areas can impact your small or mid-size business’ profitability, equity or even investment dollars. Below are some of the top industries where specialized accounting has proven beneficial.Top Industries for Specialization
- Biotech Firms
- Professional Service Providers
- Law Firms
There are significant benefits a company can reap by leveraging a specialized accounting firm such as tax breaks, operational efficiencies, and others that a specialized accounting firm will be aware of and be able to determine if and how you might apply to your business. We have seen organizations capitalize on these benefits that ultimately lead to an increase in their bottom line.
Working with an accounting firm that specializes in your industry means they are intimately familiar with your day-to-day operations and overhead structure, billing routines, staffing requirements, and more. This knowledge allows specialized accounting firms to understand and advise a company on opportunities such as system enhancements, fee schedules, industry comparison of cost structures and analyze staffing efficiencies to name a few.
When looking at the manufacturing industry, a specialized accounting firm will have a vast knowledge of the unique aspects and challenges facing manufacturing companies such as dealing with complex inventories, volumes of forms, and ways to operate more efficiently within various markets. In real estate & construction, a specialized account firm can aid in areas ranging from financing and bonding issues to skilled labor challenges. These business advisors with hands-on industry expertise will help your business exceed growth objectives and remain in front of industry trends. You may be wondering what some of the top benefits are. Below is a brief list of benefits our clients' have experienced.Top Benefits of Working with a Specialized Accounting Firm
- Industry-Specific Knowledge
- Business software Expertise
- Risk Mitigation
- Tax Benefits
For many small and mid-sized businesses, each employee is wearing many hats and too often it seems like there just aren’t enough hours in the day to get everything done. When you look at your accounting efforts, does it feel like you are missing something or that there has to be a better way to approach it? This combination of limited knowledge and lack of time is often the business signal that it is time to leverage an accounting firm or even a specialized firm. We know the time associated with researching industry-specific tax benefits or bringing a general accounting firm up to speed on your industry can be significant and for small businesses, that time could be better spent. Time can be one of the most limited resources you have available to your business. An accounting firm with specialization in your industry will not only take less time to get up to speed but their expertise should provide invaluable business and process enhancement opportunities as well.Current & Post COVID-19 Knowledge
With our currently unique business landscape, a specialized accounting firm can be one of your biggest assets when identifying and determining the financial aid that is available to your specific business as well as tax benefits that can keep your business thriving during this pandemic. This area is unique to each industry and each business. To get the best picture for your business, it is imperative to meet with a knowledgeable professional.
At JLP CPAs, our team is staffed with general and specialized accounting professionals. There are specialized accountants in the industries above with extensive experience in these industries. We also have a team of general accounting professionals. And most importantly we are focused on tailoring our solutions to fit your accounting and business needs.
Contact our team today to consult with one of our professionals or call us at 330.656.9770.