More than 95% of businesses in Canada are either small or medium sized, and these businesses offer employment to more than 70-80% of working people. The outreach and presence of small businesses are now ever increasing, but it also comes with increasing complexities of managing finances. As the company grows and the number of employees increases, cash flow problems arise and place various challenges in front of business owners.
Hiring an accountant can reduce this burden of tedious finances, help you stay tax compliant, and save you some money in the long run.
Here are 6 reasons to hire accountants for small business around Brampton, Mississauga, Etobicoke and surrounding area for efficient finances and hassle-free working.
1. Proper Tax Assessments
One major task of accounting firms is to stay updated with tax reforms and emerging changes in the industry. These professionals can assist you in calculating taxes appropriately, evaluating your compliance situation, and analyzing various breakthroughs that can help you file taxes with the best possible rewards.
This is important because 37% of businesses feel that they pay extra taxes and 74% don’t even have a clue how ghost assets affect their taxes. Ghost assets are the missing or unusable assets of the company which are counted in the company’s liabilities if not eliminated.
An accountant in Brampton can help you identify, analyze, and eliminate these ghost assets regularly.
2. Make Important Business Decisions
Small and medium business owners have to constantly multi-task. At one moment, they are acting as the marketing head of the company and at other, trying to get sales right. Some days, they have to juggle between many of these activities.
In a scenario like this, when important business decisions are to be made, you can at least be assured that your chartered accountant is constantly assessing the financial wellbeing of your organization. Based on this data of finances, it becomes easy to make informed business decisions.
For instance, you can evaluate how in similar instances hiring extra employees helped your organization financially, or how a particular decision involving money turned out in favor of the business.
3. Save Money in Long Run
Many small and medium businesses avoid hiring an accounting firm because they think it will cost them extra money. However, in reality, a professional with extensive knowledge of finances can help you save some extra money in the long run. These firms can increase your knowledge of rules, regulations, and allowances, which can assist you in saving money.
4. Enhance Cash Flow
Healthy cash flow in a small business is like make-it or break-it as one wrong move, and you can run into loses. A good cash flow depicts the financial health of your business, and an accountant can spin the wheel in the right direction to identify and eliminate red flags and get the flow straight. They can analyze different reports, figure out tax liability for one financial year, and evaluate customer payment patterns to assess if you need to negotiate.
Once your financial reports have been handled, you’ll be able to manage sudden expenses and profits in a better way.
5. Audit Proof Your Business
What will you do if IRS comes knocking on your door for an audit? The absence of an accountant can make this task a hassle. However, having an accountant, who knows your accounting details, finances, and your books end-to-end, will reduce your audit burden to a minimum. What is better – having an accountant handle IRS team/tax professionals or you trying to explain how you somehow managed to stay compliant?
Your accountant who has been handling your books and has maintained your business compliance will be able to defend you from penalties and fines.
6. Receive Expert Advice
More than anything, you will have a dedicated person or team to advise you on financial matters constantly. They can offer expert advice on minimizing taxes, maximizing profits, reducing expenses, and maintaining compliance. You can instantly acquire expert opinion rather than make a wrong financial decision and regret it later.
Although it is good to look after your finances yourself in the initial stages when you have just started out, hiring an accounting firm Billah and Associates is the most viable option as your employees and business grow. With growth, you will have multiple financial issues and compliance problems. To rectify all these, you may need an accountant by your side.