The DIY trend may be great for creative stuff, but it isn’t necessarily a great idea for handling accounting. Of course, you might have been handling the accounting yourself initially when you were short on capital and staff. But with your business slowly stabilizing and flourishing, it’s time to hand the reins of the numbers department to an expert. Wondering why? Because an accountant will free up your time for a business strategy where you excel. He/she will also help you avoid costly financial and tax mistakes. An accountant brings a lot more to the table for a small business.
Does Your Small Business Need an Accountant?
Here’s how a professional accountant can be a catalyst in turning your small business into the next big thing:
Reporting Complex Transactions Accurately: Let’s face it, accounting is complicated and the job of an expert. DIY accounting is possible only in the beginning when transactions are simple. But as you progress, the workload increases, transactions become complex, and although you’ve been doing your best to juggle multiple hats, it’s getting tougher by the day. Minor slips, miscalculations, and overlooks could invite penalties during audits. If you are having difficulty recording complex transactions and it keeps you behind in recordkeeping, it is time to hire an accountant.
Delegating such sensitive and important work to a professional accounting agency with thorough knowledge is a logical way to sidestep bigger accounting problems later. You’ll be surprised when it clears up on your schedule, which you can then invest in other decision-making or planning responsibilities that need your undivided attention.
Better Analysis of Financial Status: A professional accountant can do a more detailed job of organizing financial documents and analyzing and interpreting financial statements to help you make feasible decisions. From understanding your business’s earning and spending patterns to studying ledgers and balance sheets to diagnosing what’s working or not in favour of your financial health, an expert can do it all, possibly in less time than another employee. This expertise can help highlight any discrepancies in your records and opportunities for cost-cutting and tax benefits and highlight concerns well in advance.
Budgeting and Forecasting: Many businesses make aggressive business targets and fail to accomplish them. A skilled accountant can assist you in correctly aligning your business targets with your financials. It is important in helping you plan your next move and understand its impact on your cash reserves. They can also guide you on money management strategies, such as cost-cutting and budgeting. By giving you this realistic picture of where your business currently stands and what other options are available, the accountant can put you on the right path to achieve your goals.
Optimizing Cash Flow: One of the most critical functions of running a small business is maintaining a smooth and uninterrupted cash flow. A professional accountant can help you effectively manage and optimize cash flow through proper invoicing, accounts receivable collection and expense tracking techniques. By streamlining all your business and financial activities, you can maintain a positive cash flow that will support expansion opportunities that come your way in the future.
Handling Taxes: Being good at math does not guarantee understanding complex tax rules and laws. The CRA has a set of complex tax rules, deductions and penalties for different businesses and transactions. By correctly identifying which category your transactions fall under, an accountant can advise you on making the best of the tax benefits you are entitled to. Small business owners often miss out on significant tax benefits because they conduct the transaction differently. An accountant can educate you on how to execute a significant transaction tax-efficiently.
Even when it comes to filing taxes, taking a professional’s advice can prevent errors and avoid a stressful CRA audit. In the event that you are subjected to an audit, the accountant can capably represent you and guide you through the required documentation and procedure.
Hiring an accountant is about perspective. Instead of considering them an extra expense, consider the money you’ll save from their expertise. All that saved money can be better utilized to advance your business. If a small business owner hires an accountant from the beginning, they can help you set up strong financial systems so that you can enjoy the benefits of effective financial planning and accounting.
Contact Glenn Graydon Wright LLP in Oakville for Your Accounting Needs
Outsource your accounting requirements and make the most of their expertise in financial planning. At Glenn Graydon Wright LLP, our trained and experienced accountants can provide services to take care of all your accounting, budgeting, and forecasting needs. To learn more about how Glenn Graydon Wright LLP can provide you with the best accounting expertise, contact us online or by telephone at 905-845-6633.