Whether you currently have a business idea in your head, or are already offering your products or services to the general public, there are good reasons for hiring an accountant to help you with your finances. Many small business owners may think they are better doing their finances themselves, but more often than not, a chartered accountant from Toronto or elsewhere can actually save you money. Keep reading for a list of four reasons why you need an accountant for your company.
1. When Writing a Business Plan
If you are crafting a business plan in order to secure funding, you will need to include a section related to your expected turnover and profits. An accountant will be able to utilize business software to help you with this, and be able to add financial projections and reports that are realistic. Using software will help your plan look more professional, and can help you draft a business plan that is more likely to succeed. An accountant will also be able to give you professional advice from the start – something a lot of small businesses wish they had.
2. For Advice on a Company’s Legal Structure
When creating a company, you’ll need to consider what type of company to set up. This varies from country to country, but a few examples are sole trader, limited company, and limited liability partnerships. Every type of company has different tax allowances, and liabilities that could make or break a business. An accountant understands all of these options and will be able to help you make the right decision for your business.
3. When Filing Taxes
Filing taxes can be an extremely stressful time, especially if you have no experience. Not only can an accountant go through your documents for you, saving you hours of time, but they can also look for areas where money can be saved. Your accountant’s knowledge of legislation and tax laws can help lower your tax bill, whilst ensuring that everything is correct for the government. They can also ensure your tax bill is filed and paid on time – something a lot of new businesses struggle with in their first year.
4. To Help with an Audit
Statistically speaking, it’s unlikely that your company will be audited, however it can happen, and if it does, it’s a very stressful time. Even if you’ve managed without an accountant up to this point, now is the time to hire one. They can advise you on how the auditing process works, and help ensure that you don’t violate any tax laws, especially as the government will be watching you closely. Where possible, it’s always best to hire an accountant before you get audited – this way, they will already know how your company works, and may even offer audit insurance which will help lower the costs.
When starting a small business, you may think that you don’t need an accountant. However, they are quite often worth their weight in gold, and can save you a lot of time, money and stress in the long run.