As a business owner but also as an accountant, you know that one of the most important aspects of success is efficient and accurate financial management—and you also understand the need to get the right kind of financing for your practice.
What happens when your business starts to grow and you don’t have the working capital to keep up with the demand? Whether you are starting up, already established, or are ready for growth or acquisition, having the most appropriate financing can save you money and help you meet your objectives faster.
You may be wondering if taking out a loan to grow your accounting firm is the right move. Long-term funding options like those from banks and the SBA might not be ideal because of their restrictive approval requirements and long wait times for approval.
Alternative funding from direct online lenders is better for meeting immediate cash flow needs without spending restrictions. That’s because they have short terms—typically less than 5 years—and are therefore a quick, relatively painless way to raise capital.
There are many factors to consider before deciding which type of funding works best for you, but if done correctly, using alternative funding can help you expand your accounting firm and take it to the next level. Here are some tips on how to use your business funding to grow your accounting firm:
1. Advertising and marketing campaigns
One of the best ways to use your accounting firm’s business funding is to brand your business with advertising and marketing campaigns. This will help you reach more clients, attract new business, generate leads, and most importantly keep your existing clients loyal to you.
You can also use the money to:
- Create flyers
- Pay for online ads
- Update your website
Whatever method you choose, the power of branding is undeniable. Branding not only establishes an identity for your business and sets you apart from your competitors, but it also helps customers identify you and know exactly why they should choose you over all the others.
2. Hiring staff
Hiring new employees or expanding your current staff is a great way to use your accounting firm funding to grow your business, such as:
- Accounting clerks to help ease the burden during busier times of the year, such as with tax season, quarterly reports, or at the end of the fiscal year. They can remove some of the burdens from the firm by completing lower-level tasks.
- Admin staff to streamline operations so your accounting staff can focus on higher-value work.
- Tax specialists to have someone who can solely focus on tax compliance and planning needs as well as staying up-to-date with changing tax laws. This can also help lessen the burden on your firm during tax season and year-round.
- Estate specialists to provide valuable assistance in the event that any disputes arise among the heirs or beneficiaries of an estate. By hiring an estate specialist, your accounting firm can ensure that it provides clients with all their necessary accounting services.
By developing new talent, you increase the number of business initiatives you can take on so you can provide services to more clients. This will help you keep up with the demand, maintain a high level of customer service, and improve your chances of success. You can also use the funds to train existing employees on new software or accounting practices. Not only will this help with growth in the short term, but it will also benefit you in the long run as well.
3. Customer service
Improve customer service by offering new services or revamping current ones. With more time and resources, you can focus on providing better solutions for your clients’ needs.
4. Updating technology
If you want to stay ahead of the curve and be able to handle more clients, then you need to have the best accounting software. This will help improve efficiency and productivity within your firm.
Use your accounting firm funding to invest in new equipment, new technology, or update your current software. For example, investing in a better CRM (customer relationship management) system will:
- Help you keep track of all your finances in one place
- Send invoices quickly and easily
- Automate tasks for you so that your staff can focus on other areas of the business
- Manage your inventory levels
- Stay connected with existing clients
Payroll can be one of the biggest expenses for any business. Using your accounting firm funding to cover those costs can help you free up working capital to invest in other areas of your business. Plus, it can help you attract and retain top talent.
6. Invest in a new location
Open up a second location if you want to expand into another area. This will give your business greater visibility in the marketplace and will help you reach more people who are in need of accounting services.
Accounting Firm Funding Options
If you’re ready to start or expand your accounting firm, there are many options to finance your growth. But how can you find the best alternative business loan for your needs? It all starts with determining your funding needs and finding out which lenders offer different types of business loans.
Here are some of the options available for growing your bookkeeping and accounting services business.
- Merchant Cash Advance: With a merchant cash advance, you can get working capital when you need it most. We’ll receive a percentage of your daily or weekly credit card sales until the advance is paid back.
- Invoice Factoring: Invoice factoring is ideal if you have a long accounts receivable period. You can sell us your pending invoices in exchange for the net amount in cash. You’ll receive the balance of the invoices’ value when we receive payment (minus our fee).
- Business Line of Credit: With a business line of credit, you can borrow as much or as little as you need, without the obligation of a fixed-term loan. Draw and repay as you go, and only ever pay interest on the amount you’ve borrowed.
- Collateral Loan: A collateral loan is a secured loan that uses commercial real estate to reduce risk. Because the loan is secured, you may be approved for a larger loan amount with lower rates and fees.
Get the Accounting Firm Funding That’s Right for You
Traditional lenders like the SBA and banks have the lowest rates and longest terms, but they are difficult and time-consuming to secure. Additionally, due to their strict requirements, many applicants are rejected. Alternative lenders have more flexible requirements, allowing them to approve more accounting firm loans faster, with funds deposited in as little as 24 hours.
Several kinds of accounting firm funding are available from alternative lenders like Greenbox Capital®, including merchant cash advances, online invoice factoring, alternative business credit, collateral business loans, and term loans, with funding from as low $3,000 up to $500,000 and no restrictions on how funds are used.