If you own a small business, or if you are planning to launch one soon, you are probably looking for ways to save money because launching and running a business is no cheap affair, irrespective of how “small” it may seem initially. Besides, small businesses are usually the ones which need the most amount of cost cutting since they generally do not have big investments to rely on.
Setting budgets, cutting costs and getting more out of your investments is the job of an accountant, and while it might be tempting to skip hiring one to save expenses, you will likely save a lot more in the long run and grow much faster if you do. In case you are still not entirely sure why it would be a good idea to hire an Edmonton accountant for small businesses, consider the following points.
Getting Your Business Set Up
Even before you start your business, an accountant can provide invaluable input. Here are a few ways in which they will do that:
- Financial analysis of the business plan
- Suggesting the best suited business structure (partnership, sole proprietorship, LLC, etc.)
- Helping to make sure that your business’s financials are in perfect compliance with federal and provincial requirements
Once you are all set up, or if you already have a business in motion, the job of the accountant becomes even more important.
- Estimations to determine advance taxes and all other aspects of tax calculation
- Sorting out and sending the right forms (T4) to the right people for making sure that the CRA doesn’t consider independent contractors as company employees
- Creation of financial reports and all other documents necessary to stay clear with the CRA
- Submission of all necessary documents and the tax amounts to the CRA
- Explanation of financial data to the business owner/owners and any other concerned party, as necessary
Expansion is the most exciting part of being in business but it has to be done just right or it could fold instead of growing! This is why you will need an expert accountant with the ability to crunch numbers and find out the exact data which you can rely on to take calculated risks.
- Detection of areas in the business that are most potent for growth
- Insight into inventory management and cash flow patterns
- Creation of a feasible budget for your business expansion plans
- Financial estimations, analysis and prediction
- Guidance during an audit if required
If you happen to be someone with a thorough knowledge of the business financials and all the associated aspects, then you will likely be able to do without an accountant, but there are disadvantages to that as well. As a business owner, you will have to take up more responsibilities than just looking after and preparing the financial documents, so even if you are an accountant yourself, you will likely need the help to manage the workload.
The truth is that every business needs accountants and any company which decides otherwise will have to rethink their decision at a later point, by which time, it might already be too late.