Almost 40% of the small business owners in Canada find accounting and tax tasks to be the most complicated ones. There is no doubt that small business owners have to perform multiple tasks at once. They have to look for marketing activities, sales and of course financial transactions. Young entrepreneurs are keen to manage everything themselves. Whereas, some business owners are fond of saving additional costs. However, in both cases, accounting and tax remain tough and time taking.
Accounting and bookkeeping is the worst part of business management are the most important ones. No business can survive without proper recording of daily transactions and tax filing. Therefore, small business owners have to learn and adapt to their rules continuously. Study shows that small businesses consume up to 25% of their precious time. To avoid spending a lot of time in these activities, it is better to hire an accounting firm.
If you are still confused to hire an accounting firm, here are the three major reasons to outsource one.
You are lacking time for other business operations
You are not sure of your financial reports
You are worried about the CRA audit
You are lacking time for other business operations:
In the beginning, small business owners spend a lot of time managing all business operations. From bookkeeping to accounting, from reporting to auditing and tax preparations. It is quite normal for them to manage all at once. But as the business expands, complications increase.
With business growth, there are a lot of other challenges to encounter as well. Small business owners have to consider customer’s feedback and think of ways to provide more value to them. This means spending more time strategizing for better services. If you are spending 25% of your time managing your daily books, accounts and taxes, you might not be able to satisfy all customer demands. Thus, hiring a professional accounting firm like CPA Professional Corporation is a wise choice.
Hiring an accounting firm will help you save time and provide all accounting and tax facilities suitable for your small business niche.
You are not sure of your financial reports:
Financial reporting is not only dedicated to multinationals but is also very useful for small businesses. It helps in identifying the key expenses and revenue sources. It helps small business owners to make wiser choices for better results. Therefore, all financial reports, bank reconciliation should be made properly.
Not all small business managers are financial experts. They might not be sure of their final reports that are used to make future business plans. To avoid this confusion, and to save you from additional stress, it is recommended to outsource professional accounting and financial expertise.
This might seem like an additional expense but in reality, it is quite opposite. There are some hidden costs of running a business that you might be familiar with. Similarly, time is of the essence. If you are spending quality time preparing financial reports for future loans or investments, you should be sure of it. No investor or bank is going to invest in a business that does not have a professional finance expert. Hence, hiring an accounting firm to manage your books, accounts and finances is a logical option.
You are worried about the CRA audit:
All businesses hire experienced accountants to handle their official audits. In your case, if you do not have an expert accountant, you might have to tackle the CRA officials yourself. This creates tension. To avoid facing such scenarios and chances of legal penalties, you should look for an experienced accountant.
Hiring an accountant will not provide you with tax services. You would have to hire another person to prepare your business taxes. Therefore, outsourcing all accounting and tax work from the CPA Professional Corporation will assist you a lot. Their expert accountants and tax professionals will provide you with the best tax plans to maximize your tax deductions. This will also save you from the consequences of facing the CRA officials.
Thus, it can be stated that all small business owners should look for the bigger picture and implement ways to maximize their business growth. This can be done by hiring experts and spending time productively.
Small business owners tend to spend more time maintaining their books, accounts and preparing taxes. They should look for expert accountants to manage all complicated tasks professionally.