There’s a long-standing philosophy in business that you should have three professionals in your corner: a lawyer, an accountant and a banker. Each profession plays an important role in the success of growing small businesses.
Today, we’re focusing on essential preparations for meeting with a commercial banker. At Barta Business Group, an accounting and bookkeeping firm with locations in Denver, CO and Helena, MT we have compiled a list of the 3 reasons to outsource a bookkeeper for your small business.
Keep These 3 Items in Mind When Meeting with a Commercial Banker
1. Current Financials with Three Years of Historical Information
According to Bob Gieseke at Valley Bank of Helena, “Financial information is essentially the ‘common language’ between the client and the bank so if we have all of the proper financial information early in the process, then the process tends to move along more efficiently for us and for the client to achieve the goal (typically that means loan approval).”
A set of complete financial statements (balance sheet, income statement and cash flow analysis) should accurately communicate where you’ve been, how you’re doing now and give an insight into where you can grow. Having current year and prior year’s financials provide the ‘black and white’ picture of the financial health of your business. When these financials are accurately stated, it helps the commercial banker communicate how they can best serve your business.
2. Business or Marketing Plan
Benjamin Franklin’s quote, “If you fail to plan, you are planning to fail” is good advice for any business owner. With a 3-5 year business plan (or at least a marketing plan) you can demonstrate to a commercial banker your understanding of your business’ marketplace, changing business variables and how you plan to serve your customers. A business plan gives yourself. and anyone you share it with, a better understanding of how they can assist with your business goals.
Your commercial banker is a “business partner” in how to put your strategic plan into action with future financing needs, managing cash flow, retaining employees, preventing fraud and creating banking efficiencies.
3. Line of Credit or Loan Purpose
Whether it’s a revolving line of credit or a business loan for a fixed asset purchase, having a clear plan for how this purchase or access to additional funds will help your business in the short or long term. Referring back to the business plan and how the financing dovetails with the growth of the business can really help clarify the needs of your business for the commercial banker.
Ready to Outsource a Bookkeeper for Your Small Business?
Most businesses are great at their craft, but not great at all the financial back of the house. At Barta Business Group, a small business bookkeeping and accounting firm our team of bookkeeping, accounting, and finance professions guide business owners in making better decisions so they can focus on doing what they love in their business. Learn more about us by scheduling a consultation with us today.