Finances are generally the number one issue when it comes to running a small business or starting up a business. Every business owner has been there. There are fears surrounding the livelihood of your business, sustainability, growth, finances, and generating revenue. Hiring an accountant may seem like an added cost you cannot afford while starting out, but it can help to further your bottom line so long as you choose the right one.
Here is how hiring a chartered accountant can help your start-up business.
An accountant helps formulate a (realistic) business plan.
When starting a business, you don’t plunge in without any real idea of how your future operations are going to look. So many new businesses go under because they have too high expectations and do not understand existing market conditions – which can seriously impact the way you generate revenue.
While a little optimism is great, an accountant can help you to balance out your expectations and give you real-world advice that will help you to manage your finances while also growing your business.
An accountant can give you insight into the business structure.
Are you looking to incorporate your business, or operate as a sole proprietor? This sounds like a simple question, but it can be quite complex. An accountant may help you learn about all the tax (and legal) benefits that come with incorporating your business. They can also inform you were operating as a sole proprietor may come of benefit.
In short, incorporating your business limits your liability, helps you save on taxes, and more. But it also adds on costs to go about incorporation, can add on taxes (in some scenarios), may come with ongoing costs, and more. If there are situations where you are your business, there likely is not much motivation for you to incorporate your business and it is more beneficial to remain a sole proprietor.
Already started your business? Here’s how an accountant can help after the fact.
If you have already jumped the gun and begun getting your business off the ground without hiring an accountant beforehand, here is what you need to know.
So long as they offer this service, accountants may present bookkeeping services that can benefit your small business. Finances can be difficult from the get-go, which is why it’s important to keep on top of where what money is going and who owes what. Having your accountant handling the bookkeeping can also help you save on time that you can then spend on your business.
An accountant may also advise you on which is better – paying yourself via dividends or salaries. They can also help you know how much of your business’s money should be paid to you.
An accountant may also help you stay compliant with tax returns, sales tax, payroll remittances (ensuring they are paid on time and accurately), and more. An account is great to help whether you’re just in the planning stages of your start-up or you’re at a stage where your business has just gotten off the ground and you’re beginning to think about growth.
Accountants in different cities may charge different rates.
Keep in mind that location matters when you are scouring high and low for a chartered accountant or accountant company.
As an example, accountants in Calgary might have different rates than accountants in another city, as an example. Still, that does not mean you are looking to cut costs by hiring the lowest cost accountant. Generally, their rates will reflect the quality and diligence of their work. A good accountant will help you to maximize your profits while minimizing taxes and essentially further your bottom line. It should go without saying that maximizing your finances with the help of a professional is not something you will want to be cutting corners on, no matter how tight your budget is.
What should you look for in a chartered accountant?
When you are looking for an accountant for your business that can help you improve any tax situation you may be in, look for experts who excel in structure and planning and have the experience to offer you the advice that you need without complicating it too much. The right accountant will provide you with the education you need to help you succeed on your business journey, empowering you with the right know-how while prioritizing a good relationship with you and your business.
An accountant also gets to know you and your business and can help you create a plan that will prevent any easy mistakes and issues that may be frequent with new businesses in your field.
There are so many complexities involved with starting a business – which leaves plenty of room for error. In this case, it is integral to make the right decisions – which is where having an accountant can help immensely!
