Small Business Accounting in Toronto
At Tangs Accounting Services, we provide business accounting services in Toronto to help small and medium-sized businesses grow, expand, and track their finances.
While personal accounting involves an individual’s finances and payable taxes, business accounting refers to a business’s financials and financial obligations.
Business accounting for small businesses can be overwhelming when you consider the taxes, paperwork, and responsibilities involved in managing a corporation’s finances. We offer small business accounting services in Toronto to help businesses streamline their financial practices and fulfill their corporate tax obligations.
Tangs Accounting Services will help you plan financially and take care of all financial nuances while you focus on running your business. We are CPAs and certified business accountants in Toronto and are the proud owners of CPA designation, MBA, and Fortune 500 accounting experience.
Learn more about how your business can benefit from small business accounting services.
Business Accounting Services in Toronto
Accounting Services For Small Businesses
Tangs Accounting Services offers a full spectrum of business administration accounting services in Toronto.
We are committed to helping medium-sized and small businesses in Canada plan, maintain and meet their financial obligations.
Our small business accountants aid businesses with their financial planning, corporate taxes, and more.
The business accountants at Tangs Accounting Services have ample experience with small business accounting in Toronto and understand the unique obstacles smaller businesses face when setting up their accounting and organizing their finances.
We offer business accounting services to help alleviate these pressures. We are also offering our business accounting services online for the comfort and safety of our clients.
The reality is that small business owners often wear multiple hats and have minimal time to consider financial nuances. This is why professional business accounting services for small businesses are so essential. It helps them to streamline their processes and focus on the operations and growth of their day to day business.
Learn about our business accounting services for small businesses.
Notice to Reader Financial Statement Preparation
Tangs Accounting Services provides Notice to Reader financial statement preparation services in Toronto. The purpose of a Notice to Reader financial statement is to present unaudited financial information provided by management to investors or shareholders.
This financial statement must be appropriately prepared and aligned with International Financial Reporting Standards (IFRS). Privately held companies should abide by Accounting Standards for Financial Enterprises (ASPE) or IFRS.
A Notice to Reader statement includes a business’s essential business information and financial data, including:
- An income statement
- A balance sheet
- A cash flow statement
- A statement of retained earnings
A Notice to Reader report must include mention of the assignment’s nature, limitations, and a caution to the reader. These notices must be not audited, prepared by a CPA, and outline the work’s purpose and nature.
Uses Of a Notice To Reader
A Notice to Reader statement contains essential financial information that is relevant in various situations. You can use a Notice To Reader report for a variety of purposes, including:
Accounting System Setup for New Business
- Set up of the physical system
- Establishing business bank accounts
- Division of personal & business systems
- Records of invoices & receipts
- Introduction of tax obligations
- Payment collection systems
- Payroll set up
- Prediction of future expenses
Frequently Asked Questions About Business Accounting
What is business accounting?
Specifically, business accounting involves recording, analyzing, interpreting, and presenting a corporation’s financial data. Business accounting is how a business can track its finances, including its expenses and earnings, to plan financially for the future.
How to set up a small business accounting system
Setting up your small business accounting system involves paperwork and government documentation. Tangs Accounting Services provides business administration services and will set up your small business accounting system for you.
What are financial statements?
Business financial statements refer to the formal recording of a corporation’s financial position and activities. These statements present relevant financial information clearly, and in a way that is easy for readers to comprehend and interpret.
What is the order of preparation of financial statements?
It is essential to prepare your financial statements in the right order as each statement has information that directly leads to the following statement. The proper order of preparation for financial statements is:
- Income Statement: Your income statement outlines your business’s expenses and revenues.
- Statement of Retained Earnings: Retained earnings are based on your net profit / net loss from your income statement. This will dictate how much, if necessary, you will need to payout.
- Balance Sheet: A balance sheet is a list of your equity, liabilities, and assets. The latter should equal the total of your equity and liabilities.
- Cash Flow Statement: Your cash flow statement reflects how cash flow has changed in the accounting period concerning your revenue, expense, asset, liability, and equity accounts.
Who is responsible for the preparation of financial statements?
A company’s management team must prepare its financial statements under a professional business accountant’s guidance. Financial statement preparation is an essential business accounting service for small businesses.
What are the three key financial statements of a business
The three key financial statements of a business are audited financial statements, accountant-reviewed financial statements, and notice-to-reader statements.
Audited Financial Statements: These statements require the most involvement from an accountant as they must go through various tests to ensure the accuracy of all reported assets and debts. They are reviewed by a business accountant who will assess the quality of the treatment and let the business owner know if the statement is an accurate representation of their business’s financial status.
Accountant-Reviewed Financial Statements: These statements are meant to be “plausible.” In other words, they are likely to be accurate. For this reason, these statements go under less testing. An accountant reviews accountant-reviewed statements, but will not weigh in on their accuracy.
Notice-To-Reader: These statements are not reviewed or tested; they are an un-audited compilation of the financial data that a company provides.
Who can prepare Notice to Reader financial statements Canada?
Most Canadian provinces require that notice-to-reader statements are issued by a Chartered Accountant or CPA practicing through a CPA firm. In Canada, most provinces require that a chartered accountant issue a Notice-to-Reader only if they practice through a CPA firm. They use the information provided by your company’s management to prepare Notice to Reader financial statements.