Did you know that small businesses employ nearly 70% of private sector employees in Canada? Whether you’re a budding entrepreneur or managing a global organization, it is nearly impossible to handle the legwork on your own.
When it comes to running a business successfully, you need a strong team of professionals that help keep your operations running smoothly.
A small business accounting professional can help keep your cash flow on track, maximize deductions, and provide invaluable peace of mind. Let’s get into the top benefits!
1. Start with a Strong Foundation
Are you in the formative stages of building your business? If so, hiring an accountant from the beginning is a smart strategy.
That is because the professionals can help you organize your accounting system and software. They can also advise you on optimal business structures, which can simplify your tax return.
Accounting professionals can also guide your business plan by filling in the gaps in your strategy- which can improve your overall launch.
2. Tax Laws Change
Do you know everything about business tax laws? Don’t worry. Most people don’t have a clue!
However, as a business owner, you’re responsible for paying your taxes and complying with federal and provincial laws. If you do not want that pressure on your back, then hire a professional. Your accounting professional keep you on top of payments, and they notify you of necessary changes that could affect your business.
3. Manage Back Taxes
Owing back taxes can feel like a nightmare. A professional can help you navigate these payments with the CRA. He or she will determine how much you owe, and they will research your records to determine accuracy.
And the best part? They can help you develop an appropriate payment plan for back taxes and make sure that you don’t overpay or make tax mistakes in the future.
4. Manage Multiple Income Source
If you have one job with one T4, taxes are relatively easy and straightforward. However, once you start adding other sources of income into the mix, filing can become challenging and overwhelming. Your professional can help assess your situation. This applies to both personal and business tax situations.
For example, let’s say you have a part-time side business. Perhaps you work full-time as an employee in another organization. Let’s also say that you invest regularly, own rental property, and enjoy contributing to charity.
That can be a confusing tax situation for the average person. A seasoned pro helps analyze and organize your circumstances.
5. Meeting Deadlines
Does it seem like you’re always catching up on various deadlines that sneak up on you? You are not imagining things. Small businesses run on a comprehensive tax calendar.
You should anticipate multiple deadlines throughout the year. If you report late? Expect to pay some hefty fines and penalties. Fortunately, a professional helps you stay on track. They understand the deadlines and give you ample notices. They can also help you stay organized with your payment schedule.
That’s just one less task you have to worry about- which frees up your time to focus on what actually matters (like running your business!).
6. Managing Cash Flow
It’s no secret that cash flow management can make or break any business regardless of the industry. In fact, poor or inconsistent cash flow is one of the greatest financial challenges small business owners face. That said, behind every successful business is a rock-solid cash flow plan. Mistakes in this area can range from moderately costly to downright detrimental.
Accounting professionals specialize in analyzing red business flags. They understand tax liabilities, and they know how to give appropriate pointers to avoid unwanted surprises come tax season.
7. Handling Audits
Audits and reviews can be scary. If you are managing taxes yourself, this fear factor can be amplified by a thousand. However, accountants help alleviate some of this pressure and burden. They will help guide you through this process with ease and comfort. That’s because your professional has intricate knowledge of your books and your business structure. They also know how to ensure that you are in compliance with the laws.
And if you do get audited? They will know the steps to take to manage the process without paying more than needed.
8. Saves You Money
It may seem counterintuitive, but spending money on an accountant can actually save your business more money than you can even imagine! That’s because the experts know how to claim deductions, offset other expenses, and file your returns promptly and accurately.
These are items that may not even be on your radar. For example, you may be able to deduct a certain expense that you had no idea could be deducted. A few deductions alone can save your business tremendously.
9. Saves You Time
Money is one thing, but when it comes to managing a successful business, time is also money. How much time do you really want to devote to dealing with business taxes?
A qualified professional can save you hundreds of hours on your business every year. This frees up your time to focus on growing your business, improving your skills, and training employees.
Why waste time on managing your books and handling audits when you could have someone else do it faster and more effectively?
Final Thoughts on Hiring a Small Business Accounting Professional
A small business accounting professional can be a lifesaver for your company. Not only can they help you launch your business, but they can also support you during your growth and during your difficult times. These professionals know business inside-and-out, and they want to help yours succeed!
At TD Accounting Services, we specialize in helping small businesses like yours flourish. Want to learn more about how we can benefit you? Then you need to contact us today!
Until the next time,