As a first-time entrepreneur, starting a small business enterprise in Canada has its fair share of financial challenges which include controlling business costs, hiring employees, and generating sales invoices. While managing business accounts on your own can reduce your business costs, it is certainly not advisable unless you have a sound knowledge of how accounting and business finances work.
Moreover, as your business grows, tasks such as managing business transactions, financial audits, and tax payments can get increasingly complex and can lead to legal penalties for poor compliance.
To take care of your accounting, you can either hire a professional accountant for small business or partner with firms that offer small business accounting services. For a small business owner in Canada, employing an accountant or a professional accounting service firm may seem to be a luxury. However, in reality, partnering with a professional firm right from the inception of your business can be very beneficial for any small business.
Let us look at how hiring a professional accounting service firm can benefit your small business.
When Starting the Business
Accounting service firms can help you during the initial phase of starting and establishing your company. This can include services such as:
- Deciding the form of business structure (proprietorship, partnership, or a corporation) that works best for your business.
- Providing assistance in opening your corporate bank account.
- Evaluating the financial aspect of your business plan.
- Ensuring that your accounting practices comply with government rules and regulations.
- Providing assistance with other initial business decisions like deciding on the best accounting tool or deciding on whether to lease (or buy) required equipment.
When Running Your Business
Once your small business enterprise is up and running, accounting services can help you in a variety of financial activities, such as:
- Managing your company’s monthly payroll and payment system.
- Tracking and managing your day-to-day transactions through an effective accounting system.
- Generating financial statements on a regular basis for you to understand and keep track of your company finances.
- Identifying tax deductions and credits which are specific to your business, thus enabling you to save corporate tax.
- Advising you on how to make your tax payments on time throughout the year.
- Compiling and Submitting your tax forms and returns, along with the necessary financial documents at the end of the year.
When Growing Your Business
Growing your business can impact your current cash flow and production capacity along with your ability to deliver products or services. Experienced small business accounting services can help you time your business expansion plans by:
- Providing business insights on areas such as current cash flow, inventory management, product pricing, and business finance.
- Developing financial forecasts for your business to support better decision making.
- Managing your business budget that is aligned with your future business goals or targets.
- Improving your overall financial literacy and help you in making smarter business decisions such as starting a new company or product line, acquiring another company, or applying for a business expansion loan.
This article highlights how employing the services of a professional small business accounting firm or small business accountant Mississauga can help you set up and grow your small business, irrespective of its industry domain. Working with the right accounting professional can relieve you of finance-related complexities and let you focus your energy on the business side of your growing enterprise.