To understand the financial health of your funeral business, the right advice is essential. One of the best ways to dig deeper than surface-level numbers like profit and loss statements is by hiring an accounting firm specializing in funeral home business operations.
In this guide, we’ll discuss funeral business accounting firms and how these professionals can help drive the strategic planning of your funeral home.
Do You Need an Accounting Firm for Your Funeral Business?
We’ve said before that your time as an owner is worth $1,000 per hour. For ownership and management to make the best decisions financially, they must have meaningful financial statements with benchmarks related to their profession.
It’s for this reason that funeral business accounting firms can play an essential role in your success, helping your team prepare industry-specific financial statements, provide expense benchmark guidance, and conduct bookkeeping and business consulting services. This is true for any business, especially small or family-owned businesses that may not have the staffing or expertise to dedicate the proper time to bookkeeping.
That said, a run-of-the-mill accountant may not be the most effective choice for your funeral business. An accountant with death care expertise can help you develop sound business strategies, analyze financial information, and identify areas of improvement for your business.
Understand Your Funeral Business’s Financial Health
There are many factors that make the funeral profession unique, and the right accounting firm will know how to navigate the right path through these ins and outs. They may even be able to help you increase your funeral home’s value over time by analyzing your financials and providing guidance for growth.
An accountant that specializes in funeral business accounting will have the following unique attributes:
- Has a funeral business-specific chart of accounts for properly categorizing revenue and expenses
- Has an appreciation for the value of monitoring case counts, case mix, and average sales per case
- Has knowledge in reconciling and exporting out of the various case management and point-of-sale systems available to the funeral professional
- Understands the expense and revenue benchmarks and percentages attributable to successful funeral homes and cemeteries
- Knows how to construct the accounting process and reporting as a management tool with guidance rather than simply just reconciling to prepare for taxes at the end of the year
Accountants who are experienced in the funeral and cemetery profession will be better suited for providing valuation and consulting guidance specific to the funeral business, unlike normal accountants.
When the time comes to sell your funeral business, having an experienced accountant on your team is crucial for preparing an accurate business valuation and getting the most from your sale.
For businesses that are looking for an accounting partner, look no further than Johnson Consulting Group. Our accounting and financial management team can help funeral businesses of any size properly manage and understand their financial records. Our accountants have a breadth of experience in the world of death care, and they are qualified to provide businesses with the advice and guidance they need to ensure their financial health.
Contact us today to learn how we can help your business reach its financial goals.