From both a legal and financial point of view, keeping records is essential in order to manage your company successfully.
The accountant works with the entrepreneur to create a business plan adapted to the needs of the business, and can help when applying for financing. This can be accomplished by supporting the entrepreneur during the presentation of a project to a financial institution, in order to obtain a start-up loan or to find business partners.
Simply put, your accounting partner is there to save your company money and time. Delegating your accounting, bookkeeping, tax and related tasks, provides your business with many advantages. An established accounting firm will help you increase your net revenue, enabling you to devote more time to work on your business, instead of in your business. Benefit from the expertise of a complete accounting and bookkeeping firm, and avoid late penalties and interest by meeting your tax deadlines, while saving time, and money on software purchases, hiring, managing, and statutory remittances. Avoid the hassle and expense of training an accountant or bookkeeper internally or attempting to manage it yourself. Stay focussed on growing your business with the help of our team of experts who put your numbers to work for you.
The Importance of Accounting to Your Company
While many entrepreneurs may dread rummaging through endless piles of financial documents, accounting often provides entrepreneurs with the clearest picture of their company’s success. Entrepreneurs must also keep numerous records of small business start-ups for tax and legal purposes.
Accounting is at the root of every decision you make. Whether you are concerned with purchasing equipment, hiring staff, or the prospect of an acquisition, your decision will be based on the reality and accuracy of your accounting information. It is all about facts and figures. It is also important to note that a company’s accounting must follow certain standards so that the financial information it produces is usable, and legally sound.
The head of a company can focus on developing its core business, when relying on an accountant, by delegating various tasks such as: the maintenance of accounting records, the preparation of financial statements, and the preparation and payment of federal and provincial taxes. These are tasks for which the entrepreneur is not necessarily trained, and which may increase the chances of error, which may in turn, result in a government audit.
CPAs are qualified to carry out this type of work, and consistently monitor developments in accounting and tax standards.
Many small businesses started out as a hobby or a parallel business using cash accounting. This accounting method records and accounts for transactions when cash changes hands. It provides entrepreneurs with a simple method to maintain accounting information.
In conclusion, your company’s accounting is essential to its success. Optimal accounting is the lifeblood of your business; without it, achieving success will be significantly more difficult. Also, the benefits of having up-to-date accounting have a real impact on the sustainability of your business and indeed, it would be a shame not to take advantage of the various tax-related advantages that you may be eligible and entitled to.