For every business, big or small, it is important to make sure that the accounts are kept in good order. There are many reasons why we should hire a business accountant to take care of our accounting needs. They may vary depending on the nature of the business, but more or less, most of them are the same. Below, we are going to look at the benefits of hiring a business accountant:
For starters, you might be a very good person at business, but lack financial skills. Business accountants are there to handle your finances for you while you take care of the general management of the business.
As a new business owner, you might need advice on financial planning and financial structure guiding the business operations. There is no better way to get this advice than from hiring professional business accountants to do the work for you. They can guide the business to achieve the maximum potential with cost effective efficiency.
Business accountants also come in handy in the event that the company handles many employees and also has several expenses. They can help to come up with a payroll system, come up with budgets to suit your goals, and advice on any other ways that you can make the business financially viable such as offering alternatives to expensive purchases and procedures. Accountants can also give advice about loans and investments that are best for your business and goals.
Bookkeeping is another reason that you would want to hire a business accountant. It involves keeping records of all financial transactions related to the business such as sales and purchases, bank balances amongst other things. This enables one to budget properly and see where the company is headed financially.
You have to make sure that your business stays on top of things because you wouldn’t want the IRS breathing down your neck due to tax issues. Professional accountants know just how to handle such situations, even when it comes to providing advice on tax related issues. Gone are the days when you have to try figuring out which forms to fill, and for what purposes. Let the professionals take care of that for you. This way, you won’t raise the IRS’s brows for things you don’t understand.
Finding a Small Business Accounting Service in Toronto
We are now going to focus on finding a Toronto small business accountant. This is the ultimate guide to choosing the right business accounting service for your small business.
Things to do when hiring accountants
Referrals are some of the best ways to get business accountants because usually when someone offers a referral, it means that they know how that particular person performs. Working the other way round, the accountant will also feel that they have to be on top of their game to prove their worth.
Determine your business needs
What is your reason for hiring an accountant? Is it to offer you advice, or someone to file your tax returns? It is very important to know the reason why you’re hiring your accountant, and the sooner that you can realize that the better. This way, there will be a clear understanding and expectations between you and the business accountant. Knowing exactly what you expect is essential before hiring an accountant. Also make sure that the accountant has the necessary credentials for things like signing financial statements.
Get licensed candidates
Accountants come in three categories, depending on their educational qualifications and duties, Chartered Accountants (CA), Certified Management Accountants (CMA’s) and Certified General Accountants (CGA’s). CA’s offer services including start up counselling and insolvency counselling. CMA’s integrate accounting expertise with advanced management skills, while CGA’s duties range from providing insights into financial statements and reports to overseeing internal accounting processes.
You wouldn’t want to hire an accountant that is not available. It would be better to go for someone whose team will be at your disposal whenever you need it.
How much are you going to be paying them?
Every firm has its own payment plan. Some charge hourly, others a fixed charge for certain services. You should know exactly what their terms are to avoid unpleasant surprises later. Inquire about their charges and also go with your tax returns so that they know exactly what they are coming to offer you.
Has the accountant done any work in your industry before?
The best accountants are those with some experience in your industry, since they will be knowledgeable of the business laws and regulations. You can ask them to refer you to other clients that they have worked with, just to be sure.
Is the accountant a business owner or been one?
An accountant that is in business or has been in business before is bound to provide you with better advice than something they learnt in school.
Are they tech savvy?
Nowadays, everything seems to have gone digital and most of the accounting is done on computers or other devices using software. You would want to go for one that keeps up with the industry standards. You can check to see if they are on social media, and how active they are so as to gauge their views on technology.
How much risk can they tolerate?
Overly aggressive people could be the undoing of your business, even though it may sound like a good thing at first. Go for creative people that work within the rules and regulations.
Make sure they stay in touch with you
It is your business, and you want to know everything that happens. That is why you’ll want to get someone that will keep you up to date, even when they come up with new ideas.
The business is yours, and the ball is in your court. Getting a professional do handle your accounting for you could be the difference between financial freedom and financial doom.…