When you’re an entrepreneur, the fiscal responsibilities are never-ending, from payroll to monthly expenses, inventory costs, revenue projections and potential loss calculations. You can spend hours and hours combing through these numbers, trying to balance your books while simultaneously running a business and dealing with customers.
When it becomes too much to handle on your own, there are external resources you can take advantage of. No matter what stage you’re at in your small business, there’s never a wrong time to invest in quality financial services. Finding a professional and transparent Toronto small business accountant is easier when you know exactly what you’re looking for.
When you have the tools at your disposal and know the qualities to look for, you can ensure you’re working with a trusted small business accountant who will help you make the most of your earnings.
If you’re asking yourself, do I need an accountant for my small business, the answer may be more straightforward than you realize. To help you understand the benefits and qualities to look for in a professional accountant, keep these important factors in mind.
The Purpose of an Accountant
An accountant’s primary responsibility is to find ways to help business owners cut costs and boost revenue, providing reliable and transparent accounting services for small businesses. They are the experts with the insight you may need to fully take advantage of the financial opportunities in front of you and help you grow your business.
There are many factors that come with building and sustaining a business. Your accountant’s job is to help owners navigate their business plans, identify tax breaks, and help their clients keep as much money in their pockets as possible.
The Benefits of Hiring an Accountant for Your Small Business
There are many reasons why entrepreneurs will ask themselves, why do I need an accountant for my small business? The reality is that accountants can streamline an otherwise tedious and complex process.
To better understand if your small business could benefit from a professional accountant, it’s important to understand what an experienced accountant can bring to the table.
Assisting with Initial Business Set Ups
The early days of building your business are crucial, and a professional accountant can provide invaluable resources and tools to help build your foundation. If you’re tasked with writing financial projections, they will help you develop your sales projections, monthly expenses, and any forecasted profits or losses.
Your accountant will be able to advise on whether or not you should apply for an LLC and help you acquire the appropriate licenses for your industry, from tax permits to employee accounts. If there is any red tape, a professional accountant will have the network and connections needed to ensure your business is established effectively and efficiently.
They’re Tax Experts
Running a business can be a challenging process, particularly when tax season approaches. The purpose of an accountant is to work closely with their clients to comb through their receipts, expenses, and revenue in order to identify which expenses can be claimed and which cannot. Understanding the difference between these small business finances can be the difference between a smooth tax refund and an audit.
Streamlining Payroll Efforts
You’re likely going to hire staff to help run your business, and with that responsibility comes a range of important details and processes to keep track of. Wages, bonuses, holiday pay and labour details can significantly impact your business if you make any miscalculations. A professional accountant will have the capabilities to assist with those complex processes and ensure your business is running smoothly, so you can continue to build a strong team and grow your brand.
What to Look for in a Professional Accountant
If you’re still wondering if you need an accountant for a small business, you may simply be unsure what qualities and competencies you should be looking for in a professional accountant. One of the most important accounting tips for small businesses is to have a clear understanding of the responsibilities your accountant will handle, which will, in turn, allow you to look for the necessary qualifications and characteristics to carry out those tasks.
Certification
The most important component of a professional accountant is, of course, their accreditation. There are various categories of accountants, each with its own qualifications. Chartered professional accountants have obtained an undergraduate degree in accounting and have completed training at an established firm. Certified general accountants, in addition to a degree and training, have earned additional business management experience.
Detail Oriented
When managing client accounts, the ability to meticulously keep track of data and important files is an essential characteristic of a quality small business accountant. If you’re interviewing potential candidates, consider asking them to walk you through their bookkeeping process and how they organize their current clients’ files. You want to ensure your accountant will have no trouble organizing your payroll, taxes, and any additional documents.
Time Management
Time management is directly related to your account’s ability to promptly file documents and prepare your taxes, so you can save as much money as possible and receive your maximum return. A trusted small business accountant will have the time management skills needed to ensure every piece of data is stored, filed, and submitted within the deadline.
Consistent Communication
Clear and consistent communication is imperative in any professional relationship and is crucial when dealing with an accountant. You should be able to get in touch with them regularly and should have a clear understanding of how your business is performing financially so that you can prepare any financial projections and ensure there are no surprises come tax season.
Proven Client Satisfaction
Any established business should have no trouble providing potential clients with their track record and current client reviews. If you’re going to trust a professional small business accountant with your company’s data, you want to ensure they have been able to perform at the highest level for their previous and current clients.
