As a small business owner, being in control of everything feels like you are actually in control.Being the master of everything is a wonderful and liberating feeling. Since you are the business owner your time is extremely valuable.If you spend your time on accounting and tax compliance rather than on business development and customer service, it can cost you a lot.
You should hire an accountant for your small business when you need help with collection, analysis and reporting of financial information. As you continue to expand, you will need to bring someone who’s dedicated to keeping track of your company’s financials and taxes and can provide you with valuable guidance as you focus on growing your business.
We’ll take a look at some of the moments during the life of a typical small business, might you want to hire an accountant to help you-
- Business Structure
Should you run your business as a sole proprietor or incorporate your business.Hiring an accountant will help you look at your specific situation from a professional point of view and make the right choice.
- Business Registrations
When starting a new business, you need to register for different programs.An accountant can help by ensuring your small business is registered for the appropriate programs. Often this advice can save you time and money in the long-run.Common examples include Registration for GST/HST, Registration for Payroll and so on.
- Regulatory Compliance
It can be a daunting task dealing with government paperwork and regulatory compliances when you run your own business.This why several small business owners hire an accountant when their first tax filing is due. However, even small businesses are not just about tax filing.The whole gamut of finance and accounting covers various aspects which an accountant can provide to a small business owner for a stress free communication with CRA and other regulatory bodies.
- Rapid Growth and need to Increase Profits
Accountants are skilled at taking an objective look at your finances and offering suggestions on how to make changes that will best suit your business.If you plan to scale up towards rapid growth, with that need comes for more staff,more inventory,more internal systems and processes.All this leads to more paperwork and number crunching too.An accountant with his technical skill will help you cope with all these,diagnose the problem and develop solutions,navigating your business in the right direction.
OVERALL BENEFITS OF HIRING AN ACCOUNTANT
An Accountant specially a qualified CPA can help small business owners improve their financial literacy,explain which matrix is most suited for their industry to make smarter business decisions.It’s a powerful skill, whether you’re starting a new business, considering buying an existing business or applying for a loan.
A good accountant will be able to:
- complete and file the required legal and compliance documents for your business
- keep your company up to date with the CRA tax compliances
- prepare annual statements of accounts
- keep your company’s status updated in the government’s company register
- handle your payroll and ensure that all employees’ tax codes and payments are recorded correctly
Preparing your tax documents correctly could save you money – perhaps more money than your accountant charges you. And a good accountant will use their knowledge of tax laws and legislation to suggest ways you can free up cash flow, save money and raise capital for expansion.
Your speciality is your business so its better to focus on that and leave the financial aspects to an accountant.Letting go of tasks that are keeping you from your business’s growth is necessary.Not only will you free up your valuable time to focus on growth, the quality of the bookkeeping and finance tasks will improve. Costly mistakes can be avoided by hiring a detail oriented professional.
We at RAV CPA have experience helping businesses in each stage and would love the opportunity to help you too. Contact us if you’re considering hiring an accountant. We love helping businesses succeed.