If you are operating a business, you understand the need for accurate financial planning and proper and timely tax returns.
It is problematic that most business owners only visit their CPA when it is time to work on their taxes.
While there is nothing incorrect with seeking your accountant’s services at that time of the year, you stand to lose a lot by not engaging them in helping you grow your business.
Their skills and expertise can come in handy in several ways.
If you were to maximize them all together, you would avoid many miseries that most business owners face when attempting to get their businesses firmly on their feet.
With that said, read below to learn how a CPA can be a vital cog in the wheel, driving your business growth.
A CPA will help you set up proper regular business operations
With your business already running, you will have to put in place and maintain a proper accounting system so that you can track all the figures correctly and keep appropriate records.
Since you are busy figuring out how to take your business to the next level, you may not have the time, or let alone expertise to put all the necessary and relevant accounting systems in place.
A CPA will quickly help you set up some of these operations so that your business can be primed for better accounting and proper record keeping.
Some of the specific tasks they can assist within this area include the following-:
- Helping you understand your financial statements so that you can comprehend the finer details of your business.
- Helping you set up your business payroll and payment processes.
- Advising you on independent contractors so that they are classified appropriately for taxation purposes.
- Advising you on your tax obligations and the amount of tax you should pay every year.
- Closing your books and helping with the financial reports at the end of every financial year.
- Working on your tax returns, financial reports, and taking care of all the paperwork necessary for taxation purposes.
Unless you are a skilled account, you will be better off hiring KVB CPA’s Montreal’s accounting services to help you with the above tasks.
This is how you will get the confidence and the clarity that you are steering your business in the right direction.
Advice on the legal structure of your business
Most businesses, when starting, are usually structured as sole proprietorships. This may be ideal when just getting started, but when the company grows and starts thinking about business expansion, it may not be the best structure for you.
With the help of an accountant or financial consultancy services, you can define the right system aligned with your future business needs and expansion goals.
Sadly, this is something that most businesses usually put off until they feel it is time to have the right structures in place.
However, it is a good thing for you to set up things right the first time to focus on your venture’s growth solely. This is the domain of financial planning experts and CPAs.
Help you fix the cash flow
Cash flow is a primary concern for most businesses. Business owners who ignore it usually hamper their growth and even the day-to-day running of their business operations.
As a company focused on moving forward, the last thing you want is to pay your clients late, deal with unexpected expenses, and struggle to set up proper cash management practices.
With the help of an accountant, you can map out all the cash flow trends of your business and help you put checks and balances in place to ensure that your business never suffers from any cash flow issues.
You will never propel your business forward unless you get a good grip on your cash flow.
Assistance with the business growth stage
Accounting services in Montreal are vital when it comes to growing your business the right way. You could probably overlook the need for a CPA, citing that your business doesn’t have enough cash flow and that you will need them when you start recording huge figures.
When you are ready to take your business to the next level, a qualified accountant will give you all the necessary advice to adequately manage the growth process.
The last thing you want is to make growth moves thinking that you are ready only for things to crumble a few months down the line because you never got your projections correct.
With the help of a CPA, you will get the best advice on the following when it is time to take your business to the next level-:
- An accountant will help you identify the best possible areas for growth based on your business cash flow.
- They will advise you on property and equipment leasing and purchasing. This may end up saving you lots of money in the process of business growth.
- Come up with financial forecasts which you can use to make proper growth decisions for your business.
- Help you create a budget that will support the business growth and which will align with your goals.
Help with debt management
Debt has a unique way of stifling the liveliness out of businesses. This is not to say that debt is a bad thing and something that companies should avoid, but you’ve got to learn how to manage it properly so that you can use it to your advantage.
Unfortunately, most business owners don’t understand the difference between good and bad debt. A CPA is the rightfully qualified professional to guide you on your debts.
They will help you develop strategic repayment strategies that will see you get rid of all the bad debts while also helping you avoid getting into unnecessary debts that may hurt your business in the future.