When should a company hire an accountant?
Accountants handle more than just your taxes and payroll. They are of great value to individuals and business owners operating in different industries.
Here are a few scenarios of when you should consider to hire an accountant:
1.When Starting a business
Accountants are there to help by ensuring that all the documents needed to register your company are in place. This will save you time to focus on setting up your business.
They will also ensure that you are compliant with the legislation and CRA from the beginning.
There are also multiple legal entity structures to choose from and would be wise to consult an accountant before you start to trade.
2. To Help Manage Finances
An accountant can help manage your debtors and creditors and generate financial reports that highlight important key areas, eg, how much revenue you’re making and if you’re making a profit or not. Should your costs be too high, an accountant can make recommendations on where you can create efficiencies or even cut business costs.
Should your business use an online based accounting software, it makes it easier for the accountant to draw up charts and graphs that will give you a better understanding of where and how your business is currently doing any day, any time.
3.When The Business Is Growing
It’s quite an exciting time when your business is growing, but it can also become quite tricky. It’s important to make wise decisions, e.g. hiring more staff, moving to bigger offices, serving more clients/customers.
An accountant will provide the best growth strategy for your business according to your financial situation.
4.To File Taxes and Help Stay Compliant
Tax season can be quite stressful, especially if you don’t know how to navigate your tax returns.
Complicated or not, an accountant knows best when it comes to taxes.
An accountant would help with the following returns:
- Filing income taxes (yearly) on time.
- Should your company be registered for HST, filing HST (monthly/quarterly/annually). (When your company hits a turnover of $30,000 or more, you have to register for HST)
- They can give you advice on efficient tax structuring
- Calculating and paying estimated taxes.
- Filling Employees tax remittances for each pay period.
These are only the most common tax returns to mention a few
5.Aid With Calculating and Running Payroll
Accountants use payroll software to help them generate and calculate monthly payslips. The reports generated by these programs assist accountants in submitting CPP, EI and T4s, as well as ensuring that employers are compliant with any tax laws when paying wages and salaries.
If you’re having problems managing your accounting/bookkeeping processes and taxes, we can help you! At CFO360, we provide monthly accounting/bookkeeping services to small and medium-sized businesses and their owners. Click here to learn more about what we have to offer!
About the Author:
CFO360 offers comprehensive solutions to simplify matters for your company. Services range from accounting systems and monthly bookkeeping to tax preparation services. Led by Professional Accountants and servicing hundreds of small businesses. They’ve dealt with many small businesses going through a difficult period.