You may want to help yourself run or start a small business with a limited budget while cutting business costs. Plus, you may want to do more than yourself to increase the small business funds you already have in Toronto. One of the key persons for you considering your situation is a Toronto accountant for a small business. You may already have an accounting backdrop and knowledge of business finances to cut costs. If you don’t have such knowledge and understanding, you should consider hiring a professional accountant or outsourcing accounting services.
Please, remember managing accounting yourself isn’t risk-free because a single accounting mistake can hurt your business in the long term. Conversely, a professional accountant is a valuable resource who can help you manage your financials successfully and grow your business over time.
What Can An Accountant Do for a Small Business?
An accountant can help small businesses in many ways. We shall summarize a list of things to help you realize how an accountant can help small businesses. An accountant cannot only help a small business in the start-up process but also help it in its growth stage. Of course, an accountant is also a need for a small business to manage its regular business operations involving financials. Let us have a look at the things that an accountant can help a small business with:
Starting a business requires many actions from the person starting it alongside setting up an accounting system. An accountant can help a small business in the start-up process as follows:
- Determining the most suitable business structure, such as sole proprietorship, corporation, etc.)
- Assisting through financial analysis of a business plan
- Rendering advice about the right accounting software
- Giving advice and suggestion for opening a business bank account
- Ensuring accounting procedures adhere to government regulations and requirements
- Recommending the way to track expenses during day-to-day business activities.
- Clarifying the importance of keeping personal and business expenses segregated.
Regular Business Operations:
Small business owners need to maintain an accounting system to manage regular business operations once a business starts. Toronto accountant for a small business can help it set up. Here are some specific actions that an accountant for a small business can assist a small business in managing its regular business operations:
- Classifying the stakeholders for a business correctly
- Preparing and explaining financial statements to help a business understands the nuts and bolts
- Supervising company payroll and payment processes
- Advising on estimated tax payments a business need to make yearly.
- Helping businesses with tax planning, preparing tax returns, and submitting to the CRA.
- Closing out the books and creating yearly financial reports
Business Growth Stage:
An accountant is a valuable resource to help small businesses grow with the right advice and process management. Here are ways how an accountant can help small businesses in the business growth stage:
- Help a business realize areas for growth while providing insights on cash flow patterns, inventory management, pricing, and business financing
- Advising on property and equipment leasing & purchase
- Preventing a business from an audit from the CRA
- Preparing and guiding the business throughout an audit if it’s mandatory
- Creating financial forecasts to help a business make better financial decisions.
- Working with a business to create a budget supporting its business goals.
- Helping a business with the advice and resources it needs to encourage sales
These are various ways how an accountant can help small businesses. Small business owners can hire accountants from a professional accounting firm for all of their financial activities. Or, they may consider outsourcing fewer accounting services of professional accountants if their business allows it to cut costs. Additionally, small business owners should consider outsourcing accounting services from a reputable accounting firm to effectively manage their financials.
You may want to help yourself run or start a small business with a limited budget and cut business costs. You may already have an accounting background and understanding of business finances to cut costs. If you don’t have it, you will need to take advantage of a Toronto accountant for a small business. An accountant can help small businesses in their start-up and growth phase besides helping them manage their regular business operations. Lastly, small business owners should consider outsourcing accounting services from a reputable accounting firm to manage their financials cost-effectively and grow with time.
Sohail Afzal is a CMA (Certified Management Accountant) and the Founding Partner of a professional accounting firm, GTA Accounting. He understands the needs of small-scale businesses & corporations and offers them tax advice to overcome their tax burdens. He is a professional author who often writes articles related to accounting.