Hiring an accountant early on could be advantageous for a number of reasons.
In this article, I discuss why this is the case, as well as eight tips that could help you start your business off on the right foot.
- When you decide to start your own business, an accountant could provide you with sound financial and strategic advice. An accountant can suggest how you can apply for a loan, as well as how you can get tax refunds and credits, business grants and financing. For more information about credits, benefits, and incentives, check this useful resource page from Canada.ca, as well as this page by the Ministry of Finance.
- When starting a business you have to decide which type of business structure is most suitable for your business needs. The four different business structures are: sole proprietorship, partnership, corporation and co-operative. The structure that is most appropriate for your business is dependent upon a number of factors which include: the type and size of the business, the risks involved, the number of people employed, the geography covered, as well at the tax situation of the business owner. An accountant could help explain which business structure is most appropriate for your needs. For information about the advantages and disadvantages of each business structure, read this article by Canada Business Network.
- Also, prior to starting your business, you need to register your business with several different levels of government. One question you might ask is, do you register your business on a provincial or federal level? This is a good question to ask a chartered accountant. This useful page by Canada Business Network provides an overview of the key registration requirements that may apply to your business.
- There are specific rules and regulations that every business must follow and there are different regulations and standards for every industry. For instance, daycares have different regulations, permits and licensing requirements than importing companies and these regulations can change over time. Therefore, it’s important to stay up-to-date with the latest regulations. A professional accountant could direct you to the most relevant and current resources that will help you determine which regulations and standards apply to your industry. For more information about regulations, licensing and permits, read this article by Canada Business Network.
- When starting a business, are you required to register with a GST/HST account? When do you file for your GST and when do you pay? A chartered accountant will also advise you on these matters, as well as the advantages of registering with a GST/HST account. For more information about how to register for a GST/HST account, check Canada.ca.
- When starting a business, it is highly recommended that you open a business bank account that is separate from your personal account. A good accountant will explain the requirements of opening a business bank account and why it is critical to keep the business account separate from your personal one. For instance, having a business account not intertwined with your personal account could help you keep track of how profitable your business is and help you make financially sound decisions based on your business income and expenses. Muddling up your personal and business expenses could also make it more difficult to file your taxes.
- Bookkeeping and accounting are a significant part of any running business. At the start up phase of the business, you need to know which documents you should collect and how to establish a good filing system for all your receipts and invoices. Whether or not you decide to conduct the bookkeeping yourself or prefer to hire a bookkeeper, it may be advantageous to ask a professional accountant about how to bookkeep. This article by Canada Business Network outlines the benefits of keeping organized records and the types of records to keep.
- Lastly, there are numerous accounting software systems such as QuickBooks, Peachtree and Xero, which could assist new business owners to keep track and monitor the key metrics of their business such as sales and expenses. An experienced accountant could suggest which accounting software is most recommended and user-friendly. This article by Business News Daily discusses the best accounting software for 2017.
In summary, there are many different factors and steps involved in starting up a business. Hiring a good accountant or at least seeking advice from an accountant is critical even in the beginning phases of a business.
We are a full-service accounting firm handling taxation, bookkeeping, payroll, and accounting. We happily serve clients in North York, Toronto, Vaughan, Mississauga, Richmond Hill and other cities situated in the GTA. If you require consultation or a have any accounting inquiries, please do not hesitate to contact us.
Polina Presman, CPA, CA
Shani Marzin, CPA, CA
S&P Accounting Services LLP
2727 Steeles Ave. W. Suite 300
North York, ON, M3J 3G9
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