Hiring an accountant doesn’t come cheap. After all, they provide essential, skilled services for individuals, businesses, and organizations of all sizes.
It is understandable for small businesses or individuals with few assets to forgo working with an accountant. However, managing a growing business or a substantial asset portfolio could only go so far without a professional’s assistance.
Keep reading if you’re considering hiring an accountant to handle your financial situation. Here are some situations an accountant’s services could prove valuable.
1. Creating a Business Plan
An accountant’s services can help in every stage of running a business, including its beginning. Consulting an accountant could help you create a comprehensive business plan with sound financial planning.
While a business plan encompasses more than your business’ finances, the financial aspect is still critical. It will guide your operations once you put your plan into action and help you pitch your new business to investors and financial institutions.
2. Choosing a Business Structure
Another essential part of starting a new business is choosing a legal structure. Your business structure will dictate how your business and its finances will work once it operates.
Here are some common legal structures for your new business venture:
- Sole proprietorship
- Partnership
- Cooperative
- Corporation
A professional accountant can explain the financial implications of each structure and offer sound advice to help you make the right choice.
3. Dealing With the CRA
The Canada Revenue Agency is the country’s federal revenue service that deals with tax collection and implementing tax policies.
Businesses and individuals file tax returns to the CRA during tax season. When all goes well, nothing negative comes of it, and you don’t have to deal with any legal repercussions. An accountant can help you file accurate and complete tax returns.
If the CRA notices a discrepancy, they might have to audit your business or estate. This process can be intimidating, and you will need significant preparation.
An accountant can assist you during the audit. They can also help you solve tax disputes if you want to challenge certain CRA decisions.
4. Managing Business Finances
The bulk of a business’s financial obligations occurs in its day-to-day operations. General bookkeeping and other financial tasks are vital to running a business. Taking note of different financial transactions helps with monitoring business performance and filing relevant paperwork.
Proper financial management helps you stay on top of your finances and makes filing tax returns easier. An accountant can help you set up systems to improve daily bookkeeping practices and prepare essential documents like financial statements and projections.
5. Applying for Loans
Banks and other financial institutions want reassurance that they will get their money back. For this reason, applying for business loans can be challenging and require proper preparation.
An accountant can organize your finances and paperwork for a business loan application. They can help you get the correct information and present them in a way that can reassure and attract banks, lending institutions, and investors.
Hiring an accountant is a significant investment. While their services can cost a considerable amount, they provide valuable help and advice at any stage of your business. Make sure to consider your current needs and available resources to determine the kind of services you want to obtain.
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