When to Hire An Accountant For Your Small Business

No matter what stage your business is at, hiring a small business accountant can help it grow. In addition to handling payroll, bookkeeping and taxes they also can provide valuable financial advice. A big question small business owners have is when is the right time to hire an accountant? The answer is whenever you need one. Here is how a professional accountant can benefit your business at each stage.

In The Beginning

Hiring an accountant in the beginning stages of your small business can be beneficial. They will be an incredibly valuable resource for you. They can help you with the business plan, including budgeting, and also with any loan applications. An accountant will also be able to advise you on how to pay your employees, how to set up business accounts, how to pay yourself, and how to legally structure your business.

After It Is Set Up

If you’ve already started your business and are established hiring an accountant can still benefit you. Running a small business takes a lot of work, and as the owner, you probably wear a lot of different hats. Don’t waste hours pouring over the books; hire someone that is professionally trained to do that. This will save you time and money so that you can focus on other aspects of your business.

A small business accountant can also keep track of your financial data, catch any bookkeeping errors, manage your payroll, and set up a budget. All of this is invaluable to making a business successful. Don’t worry about the cost either. Most accountants more than make up for their fee through the money and time they save you.

During Tax Season

If you are an experienced small business owner, something you might only need an accountant during tax season. That is perfectly fine. Hiring a small business accountant to handle your taxes can end up saving you money. They can catch any bookkeeping errors that could end up causing you trouble. An accountant will also be able to find tax breaks and deductions that you might not have known about otherwise.

If your small business ever gets audited, the first thing you should do is hire an accountant. They will get you on track, recalculate figures, budget for payments, and prevent you from getting audited again. Professional accountants say the best way to not get audited is to hire an accountant in the first place.

Business Changes

When your business goes through a major change it is smart to hire an accountant to help you with these. An expanding business is a sign that things are going well but that also means there is more to handle. An accountant can help guide you through the process. Everything from financing a new location, expanding your service/product, and hiring more staff can be handled.

If you are downsizing or selling your business a professional accountant can also be helpful. They will help prepare any financial records and reports that are needed by the government or buyers. A small business accountant will also make sure you get the best value for your business when selling.

Conclusion

You can never go wrong with hiring a small business accountant. There is never a wrong time to do so. The services they provide are valuable to helping a business thrive and grow. Contact a Toronto Chartered Small Business Accountant today to talk about how we can help you with your small business.

Small Business Accounting and Accountants Myths

As a small business owner, wearing multiple hats comes with the territory. It can be incredibly stressful but with the many myths out there about small business accounting it’s easy to understand why people are reluctant to hand over that role. To make your life easier as a small business owner we’re here to debunk 6 of the most common myths about small business accounting and accountants.

1. Small Business Accounting Services Are A Waste Of Money

People think that they can save money by doing all the bookkeeping themselves. There’s tons of online accounting software out there now too that makes it much easier. However, nothing can replace the skill and experience that a professional accountant has. Hiring a small business accountant will end up saving you money, not wasting it. They will set up financial plans, create budgets, manage the books, and find hidden tax breaks.

2. They Are Only For Large Companies

Professional accounting services are important to any business, large or small. Outsourcing your accounting needs are safe, inexpensive, and easy these days. No matter the size of your business, organized books, effective budgeting, and an understanding of taxes are vital to its growth and stability. Hiring a professional small business accountant will provide all of that and more for your business.

3. An Outsourced Accountant Will Not Understand My Business

A lot of small business owners think that an outsourced accountant won’t understand their individual business. A professional small business accountant works hard to understand the specifics of any business that hires them. They are usually very well rounded and have a strong understanding of multiple industries. If it’s a serious concern for you though consider hiring an accountant that specialized in your specific industry.

4. They Are Too Expensive

A decision usually comes down to money. The number one reason small business owners don’t hire an accountant is because they think they’re too expensive. While an accountant is an upfront cost, they more than make up for it in the long run. They can increase cash flow, have better budgeting, improve bookkeeping, and create higher profit margins. They will make up for their fee and more.

5. Small Business Accounting Services Are Only Needed For Taxes

Finances are most crucial during tax season, but it’s important not to neglect them during other times of the year. A small business accountant will give you an accurate picture of your finances throughout the year. They’ll make sure your books are accurate and that you’ll have everything handy for filing taxes. If you’re hesitant maybe try out an accountant for tax season as a trail run.

6. I Can Handle The Accounting Myself

As a small business owner, you already take on so many roles. You do whatever needs to be done. Unfortunately, this means that you’re busy a lot of the time. Mistakes will get made and things slip through the cracks. Hiring a small business accountant means someone is solely focused on your finances, which is a good thing. It means you’ll have one less thing to worry about.

Bottom Line

Don’t buy into one of the many myths about small business accounting and accountants. Hiring a professional means you’ll spend less time on finances and more time actually running your business. 

Everything You’d Want to Know About Filing Taxes Late

Tax season is full of stress, especially as the April 30^th deadline gets closer and closer. You may be wondering what happens if you miss the date for submission. The answer is nothing good. That’s why accountants always recommend filing and getting started as early as possible. And here’s why.

Deadlines

Have it marked on your calendar. April 30^th is the deadline that income tax returns have to be submitted by as well as any balance owed to the government. Make sure any payments sent by mail have been postmarked on or before that date or you’ll get a penalty. If you’re self-employed there’s a big more wiggle room. Taxes don’t have to be filed until June 15^th but the catch is that any balance owed is still due on April 30^th, which confused a lot of people. Talk to your Toronto accountant to make sure you’re following the right dates.

Penalties

There are some pretty hefty penalties for filing late. You’ll be charged 5% of your owned balance plus an additional 1% for each additional month that your return is late. These penalties can increase too, doubling even, if you are continuously late. If you can’t afford to pay your balance by the due date at least make sure you file your taxes.

Benefit Interruption

Government benefits may also be interrupted in addition to financial penalties. Filing annual tax returns is a requirement in order to receive some government benefits. If you file late, or not at all, the payment for these programs will likely be late.

Programs that are affected by this are:

• Canada Child Tax Benefit
•  Universal Child Care Benefit
• Working Income Tax Benefit
• Guaranteed Income Supplement
• GST/HST Benefit
• Ontario Trillium Benefit

I Filed Late: Now What?

If you’ve already missed the deadline the best thing to do is file as soon as possible. Penalties get worse with each day that passes. There’s something called voluntary disclosure which is when you submit your taxes and forms before the CRA audits and asks for them. If you do this you will only be required to pay the amount owed plus interested instead of steeper penalties.

How to Avoid Being Late

Accountants always preach that you should avoid filing late at all costs, even if it means a late night or two. The penalties for filing late are heavy. Start getting all the information you need as early as you can. Don’t wait for the deadline either- file as soon as you have everything ready. Consider hiring an accountant to help you with everything as well. Contact a Toronto chartered accountant today if you have any questions, concerns, or are interested in our tax services.