Hiring a certified accountant is one of the most important things you can do as you get ready to incorporate your business in Canada.
Your accountant will be better at creating a business structure that will reduce your tax liability if they are aware of your tax situation. They can help out with any big or small inquiries while also helping your business stay on its feet. Their job is to think about taxes while deciding how to distribute family income, who will run the company, and how much authority each individual should have. If you want to know more about them and their role, keep on reading!
Why do you need an accountant in Canada for your business? Top 7 reasons
1. Improve your workflow
Your organization’s success will be directly proportional to the efficiency of your billing system.
Inefficient billing will delay payment, leaving you strapped for cash, as well as a lot of your staff unsatisfied.
Despite its apparent simplicity, this factor poses a serious danger to a wide range of businesses.
By working with a bookkeeper or accountant to establish an automated invoicing system, you will be able to:
Send invoices quickly, track which ones have been paid and which haven’t, and provide customers with many ways to pay.
If you get advice from accountants and bookkeepers on invoice payment terms, you can reduce the amount of time you spend waiting for payment.
Have a faster way of handling most things & situations.
2. Better decisions for your company
You will unavoidably come to crossroads that might not work in your favor from the get-go.
When making such important choices, an accountant who is familiar with you, your business, your objectives, and the competitive landscape may offer insightful advice.
You must determine what form of ownership structure will work best for your new business.
At some point, a company must choose an accounting system.
A financial forecasting specialist can assist in determining the best course of action for a quickly expanding firm. This is why you should work with someone who is trustworthy, but more on that later.
3. Plan for the future
An accountant should be contacted as soon as possible for many reasons, not the least of which is to get proper assistance from the start.
An accountant can help you save thousands of dollars annually just by rearranging your business or giving you good tax advice at the start.
There are some tips and tricks that they can share with you, which will make you think twice. For instance, did you know that if you are not the only shareholder, you can minimize your dividend income tax liability by purchasing the most advantageous class of shares?
4. Sort out any government issues
As a business owner, government documentation can be frightening to sort out and do on your own.
When the first tax file is due, many small business owners engage an accountant.
They can help with more than taxes + they can aid your company’s government relations.
Good accountants are known for:
- Completing corporate legal and compliance paperwork
- They are always current on tax laws
- Help with annual financial statements
- Payroll and tax codes must be recorded appropriately
and many, many more!
5. Better cash flow
After selecting an appropriate accounting system for your business, your accountant will work with your bookkeeping staff to develop efficient and effective cash management procedures. Who doesn’t want more cash or a better flow of it?!
Accountants help their clients by establishing billing processes that speed up receivables and time payables, therefore increasing available cash for their use.
Further, they devise ways to improve your business’s cash flow in a smart way, and in the long run.
6. Avoid a CRA audit
An audit is never fun to go through, as most of you would expect.
If you have to find everything the CRA requires, time will be lost, and if they do an audit, you could not have all they require, which can lead to bigger problems and more questions. Are you aware that a successful business can be run without undergoing routine audits?
All that is necessary is for an accountant to process bills, diligently keep records, and produce accurate data on time.
If CRA doesn’t observe any red flags, there won’t be any need for them to look into your business and make check-ups.
In the event of an audit, your accountant will deal with all interactions with the CRA, allowing you to carry on with your day as usual without having to stop to deal with the investigation.
7. Do your taxes
Do you have the knowledge and skill to implement all of the provisions of 70,000 pages of tax law?
You likely lack the knowledge and time to fix the problem on your own, but a minor accounting cost for tax services can help.
Your accountant’s job is to keep track of all of your spending throughout the year so that you may file your taxes with as little liability as possible at the end of the year.
The accountant will create and file all of your tax documentation with CRA, including your financial statements, and tax return (T2), T4, T4A, and T5. This is quite important, which is why they are more than worth the investment, no matter the size of your company.
Where to find an accountant?
After reading this article, we bet that a professional bookkeeper is what you may need for vital decisions, handling your books, tracking revenue, and checking your stakeholder requirements. You should focus on yourself & your tasks, while the right accountant in Canada can do the rest. This team of professionals has been in the business for years + you can get a quote from them within minutes. Sort out any issue or question that you may have + schedule free consultations to see what they have to offer knowing you’re in safe hands.