Most business owners only talk to their CPA between February and April. And while tax season communication is essential, the real value comes from the conversations you have the other nine months of the year.
The food distribution and manufacturing industry is complex and fast-moving. From tariff changes and currency fluctuations to cross-border compliance and supply chain pressures, this industry’s financial landscape is always shifting.
That’s why we meet with every business client at least quarterly to tackle these potential challenges.
What do we talk about? Here are three conversations that can help move your business forward.
What does my financial picture really look like?
Understanding your financial picture means knowing which SKUs and product lines are truly profitable and how quickly you turn sales into actual cash. This is especially critical when you’re managing perishable inventory and thin margins.
Questions to address with your CPA:
- What patterns do you see in my numbers?
- Where am I leaving money on the table?
- Are there any red flags in my financial trends I should address now?
It’s easy to misinterpret a P&L if you’re not clear on accrual vs. cash basis accounting. And not realizing that some of your reported income hasn’t actually been collected yet can create serious cash flow blind spots in a margin-sensitive business.
What happens when I’m ready to grow?
Whether you’re looking to expand into new markets or pursue an acquisition, you need to plan ahead. Your CPA can help you understand what lenders and investors expect to see in your financial statements and whether your current business structure supports your expansion goals.
What to ask:
- If I wanted a $500K line of credit next year, what needs to change in my books?
- What specific numbers in my financials do lenders focus on, and where do I stand?
- When expanding internationally, what are the tax and compliance implications of hiring in new markets?
Growth also brings compliance considerations, so make sure you’re clear on employment laws, customs requirements and regulatory obligations in every market you operate in.
How do I get to where I want to be in three to five years?
Exit planning starts way before you’re ready to sell. Many effective tax strategies require years to implement properly, and your CPA can help ensure you’re building wealth both inside the business and in your personal finances — while keeping your operation structured in a way that maximizes its value to a future buyer.
Talk to your CPA about:
- What steps should I take now to maximize my business’s value at exit?
- What would a buyer want to see in my financials?
- How do I start pulling money out of the business tax-efficiently?
It’s never too soon to start planning for a profitable exit.
Don’t wait for tax season
If you’re not touching on these topics when meeting with your CPA (or worse, not meeting at all), you’re missing out on an informed perspective to help move your business forward.
The advisors at Magone & Company can help support your business with year-round guidance to meet your goals and achieve sustainable growth. Contact us today to learn more.
This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your unique circumstances.