Financial Advisory Services in Pleasanton, CA
Running a business means making financial decisions every day. Owners need to understand what is happening with revenue, expenses, cash flow and profitability before deciding where to invest, when to hire, how quickly to grow or where to reduce costs.
Sharma Davis Madan & Co. (SDM CPAs) provides financial and business advisory support for clients in Pleasanton, California. Our approach starts with the financial information already generated by the business and helps owners use that information to better understand performance and evaluate important financial decisions.
Founded in 2002, SDM CPAs provides tax, accounting, bookkeeping, payroll and related professional services from its Pleasanton practice. For business owners who need more than basic bookkeeping or annual tax preparation, these services can be coordinated according to the needs of the business.
Financial Advisory for Pleasanton Business Owners
Financial reports contain valuable information, but the numbers are most useful when an owner understands what they mean.
For example, increasing revenue does not necessarily mean a business is becoming more profitable. Expenses may be increasing at the same time, or customers may be taking longer to pay. A business can also be profitable on paper while experiencing periods of tight cash flow.
Financial advisory support can help owners look at these issues together.
Depending on the needs of the business, advisory work may involve:
- Reviewing financial performance
- Understanding revenue and expenses
- Monitoring cash flow
- Reviewing financial reports
- Evaluating profitability
- Planning for growth
- Identifying financial priorities
- Considering the financial impact of major decisions
- Coordinating accounting and tax considerations
The appropriate advisory services depend on the business, its financial information and the scope of the professional engagement.
Understanding Your Business Financials
Business owners do not need to be financial specialists to benefit from understanding their company's numbers.
Financial statements and accounting records can provide insight into areas such as:
- Revenue
- Operating expenses
- Gross profit
- Net income
- Accounts receivable
- Accounts payable
- Cash balances
- Business liabilities
- Payroll expenses
- Other financial measures
The important question is not simply what a number is, but what it may indicate about the business.
For example, rising accounts receivable could affect available cash. Increasing expenses could reduce profitability even when sales are growing. Changes in gross margin could also indicate that the cost of delivering products or services is changing.
Looking at financial information in context can give business owners a clearer picture of how the company is performing.
Financial Reporting for Better Business Decisions
Financial reporting can help owners monitor the business over time rather than relying only on year-end tax information.
Regular financial reports can help answer questions such as:
- Is revenue increasing or declining?
- Are expenses growing faster than sales?
- Is profitability improving?
- How much cash is available?
- Are customers paying on time?
- What expenses are increasing?
- How does the current period compare with previous periods?
- Are there financial trends that need attention?
The value of financial reporting depends on the quality of the underlying accounting records.
This is why accounting and bookkeeping are important foundations for financial advisory work.
Cash Flow Planning for Businesses
Profit and cash flow are not the same thing.
A business can report a profit while still experiencing cash-flow pressure. Customer payments may arrive later than expected, while payroll, rent, supplier invoices, loan payments and other expenses still need to be paid.
Cash-flow planning can help owners understand the timing of money coming into and leaving the business.
Depending on the engagement, advisory support may involve reviewing financial information to help owners evaluate upcoming cash requirements and financial priorities.
For a growing business, understanding cash flow can be especially important before taking on additional employees, purchasing equipment, increasing inventory or committing to new operating expenses.
Financial Planning for Business Growth
Growth can create opportunities, but it also requires financial planning.
A business preparing to expand may need to consider:
- Additional employees
- Payroll costs
- New equipment
- Increased inventory
- Additional office or operating space
- Marketing expenses
- Working capital
- Financing requirements
- Changes in cash flow
- The expected effect on profitability
Before making a major growth decision, owners may want to understand how the decision could affect both short-term cash flow and longer-term financial performance.
Financial information can provide a useful starting point for those discussions.
Business Performance Analysis
A tax return provides important information, but it is not designed to answer every question a business owner has about current performance.
Periodic financial information can help owners monitor trends in:
- Revenue
- Expenses
- Gross profit
- Net income
- Cash flow
- Accounts receivable
- Accounts payable
- Payroll costs
- Other business financial measures
Comparing results across different periods can reveal patterns that may not be obvious when looking at a single month's or year's numbers.
Business owners can then use that information when considering operational and financial priorities.
Connecting Accounting With Business Decisions
Accounting should support more than tax preparation.
Well-maintained accounting records can provide information that owners use when evaluating business decisions.
For example, a business considering expansion may want to understand its current profitability, cash position and expected expenses before committing to additional costs.
A company considering hiring additional employees may need to look beyond salary and consider payroll-related costs, benefits, operating expenses and the effect on cash flow.
Similarly, an owner considering new equipment may want to evaluate the purchase in relation to available cash, financing and expected business activity.
This is where accounting information can become a practical decision-making tool.
Financial Advisory and Tax Planning
Tax considerations can affect many business decisions, but tax should be considered as part of the broader financial picture.
Business owners may want to discuss tax considerations when:
- Starting a business
- Changing business structure
- Expanding operations
- Purchasing business assets
- Changing ownership
- Experiencing significant changes in income
- Preparing for year-end
- Making a major financial decision
SDM CPAs also provides tax preparation, tax planning and accounting services. Where appropriate, related services can be coordinated through one professional relationship.
Tax recommendations should always be based on the client's circumstances and applicable tax law.
Accounting, Bookkeeping and Financial Advisory
Financial advisory work depends on reliable financial information.
If accounting records are incomplete or outdated, it can be difficult to determine how the business is actually performing.
For this reason, bookkeeping and accounting are often important foundations for effective financial management.
SDM CPAs provides:
- Accounting
- Bookkeeping
- Financial reporting
- Tax preparation
- Tax planning
- Payroll
- Business advisory support
The services can be combined according to the needs of the client and the scope of the professional engagement.
When Should a Business Consider Financial Advisory Support?
There is no single point at which every business needs advisory services.
A business owner may want professional financial guidance when:
- The company is growing
- Revenue is changing significantly
- Expenses are increasing
- Cash flow is difficult to predict
- Financial reports are difficult to understand
- The business is considering expansion
- The owner is evaluating a major purchase
- The company is considering additional employees
- The business needs better financial reporting
- The owner wants a clearer understanding of profitability
Advisory support can also be useful when an owner simply wants a better understanding of what the company's financial information is showing.
Financial Advisory for Small Businesses
Small business owners often handle many responsibilities themselves. That can make it difficult to step back and review the company's financial position objectively.
Regular financial information can help an owner see how the business is performing and where attention may be needed.
Useful information may include:
- Monthly revenue
- Monthly expenses
- Gross profit
- Net income
- Cash flow
- Outstanding receivables
- Outstanding payables
- Payroll expenses
- Tax obligations
The goal is not simply to produce financial reports. It is to make those reports useful for understanding the business.
Financial Advisory for Established Businesses
Established businesses may have more detailed financial reporting and planning needs.
As a company grows, owners may need to evaluate different parts of the business separately, compare financial performance over time or consider how a major decision could affect the company's overall financial position.
Financial advisory support can provide another perspective when reviewing this information.
The level of analysis required depends on the size of the business, its financial systems and the questions the owner needs to address.
Why Work With a CPA for Business Financial Guidance?
Many business decisions involve several financial considerations at the same time.
A decision to hire employees, for example, may affect payroll, expenses, cash flow, accounting records and taxes.
An expansion may affect revenue expectations, operating costs, financing and working capital.
Working with a CPA firm that understands accounting and tax information can therefore be useful when evaluating decisions that have multiple financial consequences.
SDM CPAs brings tax, accounting, bookkeeping, payroll and business advisory services together within one established CPA practice.
Why Choose SDM CPAs in Pleasanton?
Sharma Davis Madan & Co. was established in 2002 and is based in Pleasanton.
The firm provides a range of services for individuals and businesses, including:
- Tax preparation
- Tax planning
- Tax consulting
- Accounting
- Bookkeeping
- Payroll
- Business advisory services
For business owners who need support across more than one financial area, having related services available through one CPA firm can simplify communication and coordination.
The specific advisory services available depend on the business's needs and the professional engagement.
Our Pleasanton Office
SDM CPAs maintains a local Pleasanton practice serving business owners and other clients in the area.
The firm also serves clients throughout the surrounding Tri-Valley communities, including Dublin and San Ramon, where appropriate.
If you are unsure whether financial advisory support is right for your business, you can discuss your current financial situation and goals with SDM CPAs to determine what type of assistance may be appropriate.
How Financial Advisory Services Work
1. Understand the Business
The process begins with understanding the company, its financial situation and the questions the owner wants to address.
2. Review Financial Information
Relevant accounting records, financial reports and other information are reviewed based on the professional engagement.
3. Identify Key Financial Considerations
The available information can be used to identify trends, questions, opportunities or areas that may require additional attention.
4. Discuss the Financial Picture
The owner and CPA can discuss what the financial information indicates and which factors may be relevant to the business.
5. Evaluate Options
Where appropriate, the available financial information can be considered alongside the owner's goals and business priorities.
6. Revisit as the Business Changes
Financial conditions change over time. Business owners may need to review financial information again as revenue, expenses, staffing, cash flow or business objectives change.
Financial Advisory vs. Investment Advice
The term “financial advisory” can refer to different types of professional services.
The business financial advisory services described on this page relate to accounting information, financial reporting, business planning and financial decision-making.
They should not be interpreted as a representation that SDM CPAs provides investment management, securities recommendations or other regulated investment advisory services unless those services are specifically offered and appropriately licensed.
Business owners seeking investment-related advice should work with an appropriately licensed professional.
Related Pleasanton Services
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Frequently Asked Questions About Financial Advisory Services
What are financial advisory services for a business?
Business financial advisory services can help owners understand financial information, evaluate performance, monitor cash flow and consider financial factors when making business decisions.
Does SDM CPAs provide financial advisory services in Pleasanton?
SDM CPAs provides accounting and business advisory support for clients in Pleasanton. The specific advisory services available depend on the client's needs and the professional engagement.
Can a CPA help with business financial planning?
A CPA can help business owners understand accounting and financial information and consider financial factors related to business planning, depending on the services provided.
Why is cash flow important for a business?
Cash flow shows the timing of money entering and leaving a business. A company can be profitable while still experiencing periods when available cash is limited.
Can financial reporting help a business owner?
Yes. Organized financial reports can help owners monitor revenue, expenses, profitability, cash flow and other financial measures over time.
When should a small business consider financial advisory support?
A business may consider advisory support when it is growing, experiencing significant financial changes, dealing with cash-flow concerns or evaluating an important business decision.
Can accounting and financial advisory services work together?
Yes. Accounting records provide much of the financial information used to evaluate business performance and make financial decisions.
Can tax planning be part of business financial planning?
Tax considerations can be relevant to business financial decisions. The appropriate tax planning approach depends on the business owner's circumstances and applicable tax law.
Does SDM CPAs provide accounting and bookkeeping services?
Yes. Accounting and bookkeeping are among the services provided by SDM CPAs.
Does SDM CPAs work with small businesses?
Yes. SDM CPAs provides accounting, tax and related professional services for business clients, including small businesses.
Does financial advisory mean investment management?
Not necessarily. Business financial advisory can refer to accounting, financial reporting and business decision-making support. Investment-related services require appropriate licensing and should only be represented if they are actually provided.
Need Financial Guidance for Your Business?
Understanding your financial information can make it easier to evaluate performance, plan for upcoming expenses and consider important business decisions.
If you are a business owner in Pleasanton looking for accounting, financial or business advisory support, SDM CPAs can discuss your situation and help determine which professional services may be appropriate.
Schedule a Consultation With SDM CPAs
5700 Stoneridge Mall Rd, Ste 360 Pleasanton, CA 94588
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