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It’s 2020, and filing taxes is still a big headache, even for small business owners. This is especially true if you have just started your own business. No matter how sharp you are, knowing the A B Cs of business is still a challenge to many business owners.
You may take a CPA for small business owners, which will acclimatize you to the business climate in Ontario, help you to organize your financial affairs, maximize tax savings and tax planning to lower tax burden.
There is an ill-conceived notion that only big businesses need Chartered Professional Accountants in Brampton and GTA. Although big businesses really need good accountants, small businesses can benefit immensely from professional accountant services.
Most people know accountants will crunch all your numbers. We also know that accountants reduce your taxes, or keep you in good terms with the taxman (CRA).
In this article, we’ll look at how CPA accountant services for small businesses and medical professionals can propel your small business to greater heights. Also, it will highlight a couple of accountant responsibilities and how an accountant can be your greatest friend in business.
WHAT EXACTLY DO ACCOUNTANTS DO?
An accountant is somebody with a very long job description. Despite that, most of us know accountants as “those guys” you call to help you file your taxes once a year with Canada Revenue Agency (CRA).
Understandably so, most people don’t really need accountants save from business owners and a select few.
Here’s a brief list of some of the other key responsibilities of accountants:
- Calculates all taxes you owe, facilitates the payment of the taxes, and ensures everything tax-related is recorded. They will also file your taxes as per Canada Revenue Agency regulations.
- Keep well organized and constantly updated financial records.
- Adopt the most economically efficient practices for all matters concerning money management and expenses.
- Ensure all financial records and statements are regulations and law-compliant.
- Suggest cost-reductions methods that will increase profit margins.
- Provide sound financial advice and consulting to those at management levels.
MAIN TYPES OF ACCOUNTANTS
Accountancy is a very vast field, and as such, we have different accountants with different jobs.
Here are the main types of accountants.
- Internal auditor- Aligns a business’s risk tolerance with a business’s current financial situation. They then reduce financial wastage and identify any instances of fraud
- Management accountant- People sometimes refer to these accountants as private accountants. Specific clients hire these accountants to handle all matters of financial management.
- Public accountant- A public accountant’s client is very different from those of a private accountant. Public accountant’s clients include government bodies, individuals, and organizations. Their expertise spans a broad range of tasks like tax matters, auditing, and even consulting.
- Government Accountant- Government accountants handle financial management for government agencies. They also cater to private clients who need to make their financial statements and transactions in line with the laws and regulations.
WHY ACCOUNTANT SERVICES ARE SUPER IMPORTANT FOR SMALL BUSINESSES
An accountant for your small business or medical practice is more of a necessity than a luxury. Most business owners have qualms about hiring an accountant because of the pay.
The profit you get from hiring an accountant will be manifold what you pay the accountant. Still in doubt about getting an accountant, here are a couple of reasons why you should never think twice about hiring an accountant.
1. TO PREVENT TAX WRITE-OFFS
Tax write-offs are pretty common among small businesses in the GTA. Understandably so, most small-businesses are owned by people new to the industry. As such, most of these small business owners don’t quite understand the tax ropes.
2. TO AVOIDS VISITS FROM THE CANADA REVENUE AGENCY
Business owners dread when Canada Revenue Agency contacts them, even if it’s a Christmas letter. You see, CRA is pretty diligent and stringent when it comes to their work.
You may need to verify certain payments you make that are out of the ordinary. It may be a house purchase or the car you recently bought.
Sometimes this simple letter could have massive implications on your finances. Anything incorrect, even minor mistakes are not taken lightly by CRA.
3. TO ACCELERATE YOUR BUSINESS GROWTH
You don’t want your small business to remain small forever. Everyone starts a business with the hopes that it will one day take its place among the industry giants.
A good Chartered Professional Accountant can be instrumental in propelling your company to greater heights. For instance, accountants can give good advice on whether to acquire or lease equipment. They also help you make a budget that will be ideal for your particular business.
Apart from these, accountants also do the following to facilitate a business’s growth:-
- Prevents any Audits by CRA (Canada Revenue Agency)
- Help you through the audit process in case you get audited
- Provides sound financial advice that centers on the growth of your small business
4. VITAL IN THE START-UP PHASE OF YOUR BUSINESS
The most difficult phase of any business is the start-up, especially for first-time business owners. This phase could set the tone of your entire business during its lifetime. As such, you need the right people to guide you well through this sensitive phase.
An accountant can help you achieve the following:
- Help you come up with the best business structure that will maximize profits
- Crunch all the number in your business plan to determine its feasibility
- Make sure every financial transaction complies with regulations the government stipulates
- Give you advice on what financial software will be beneficial for your business
- Suggest methods on how to separate your personal expenses from your business expenses
What’s more, you can hire an accountant for a brief period to get your business off the ground. Later on, you can hire a bookkeeper to maintain all financial records. When you’ve grown your business enough to need an accountant, you can hire one again.
AN ACCOUNTANT IS A PRIME ASSET
Accountants are not superheroes, but they do all the above-mentioned accountant services for your small businesses. So the next time you want to skip out on accounting services Brampton or the GTA, you may want to reconsider your decision. When you need qualified and experienced accountants, contact us and grow your business to its full potential.
At MW Mirza Chartered Professional Accountant, we offer practical strategies to small business owners and medical professionals in Brampton, Mississauga, Milton, Oakville, Caledon, Etobicoke and Greater Toronto Area to help them organize their financial affairs, maximize tax savings and tax planning to lower tax burden.
For a free consultation, contact us at 647-866-1285 today. We are open Monday to Friday, 9 am to 5 pm. Our business address is: 2250 Bovaird Dr. East Suite 304 Brampton, ON L6R 0W3. You can book your consultation here on our website. https://mwmca.ca/contact-us