While you might be tempted to save some money and handle your bookkeeping, payroll, and taxes on your own, when it comes to financial management, cutting corners can cost your business far more in the long run. Without a corporate accountant on your side, you will find it increasingly difficult to track your day-to-day cash flow and by extension, the trends that are contributing to revenues and losses across your organization. You will also find yourself dedicating more resources towards tax filings and payroll preparation. Over time, these time-consuming tasks will inevitably detract from your core responsibilities.
If you’re struggling to keep up with your business’s rapidly evolving financial environment, then it may be time to put these critical support functions in the hands of a corporate accounting services provider. A reputable firm can add both strategic and operational value to your organization.
An experienced corporate accountant offers far more than just basic bookkeeping skills. These individuals are proficient in a variety of specialist areas, including:
•Accounts receivables and payables management.
•Developing and reviewing budgets.
•Assisting with sales, revenue, and overhead forecasting.
•Cleaning and streamlining accounts.
•Managing expense accounts and reimbursements.
•Corporate income tax returns, sales taxes, and other domains of tax reporting.
•Conducting internal audits.
•Preparing financial statements.
As a business owner, you can pick and choose from amongst these services to find the ones that are most relevant to your needs.
There are currently over 180 potential tax deductions, benefits, and exemptions available to business across Canada. If you are able to combine and implement these strategies in an optimal manner then you could potentially reduce your tax burden by up to 50%. For example, T2 corporate income tax returns can be substantially adjusted with federal and provincial investment tax credits for R&D, location or industry-specific job creation, and the provision of socially beneficial workplace facilities.
Unfortunately, the extreme complexity of the modern tax system makes it almost impossible for the average filer to properly utilize these highly specific and constantly changing exemptions. A corporate accountant will stay informed on the latest updates to the CRA code and use their knowledge to get you the maximum possible savings on your annual and quarterly filings.
A qualified accounting professional can provide vital support during the initial planning and launch of a new business. These individuals can work with you to understand your objectives, the market you’re aiming to enter, and your operational model. Based on these inputs, they can recommend an appropriate structure for your organization (partnership, LLC, S-Corp, etc.) They can also help you to register your business name and guide you towards relevant resources for licensing and certification.
If you need to obtain financing at this stage, then the corporate accountant can help you formulate a professional business plan that will provide potential investors and creditors with a clear view of the business’s future.
A good corporate accountant will keep regular tabs on your sales data, profits, cash flows, inventory levels, overheads, and debts. This information will give them a comprehensive overview of your business’s financial health.
•During periods of growth, they can use their reports and insights to help you identify opportunities for further investment.
•When it comes time to grow your business, they can help you plan out a practical schedule for expansion that doesn’t exhaust your existing resources.
•During a period of financial hardship, your accountant can help you identify areas of your operations that need to be streamlined or jettisoned altogether. They can also help you restructure your loan agreements and other debts, so that you’re afforded more breathing space to get your finances back on stable footing.