Small Business Accountant
Top Etobicoke Small Business Accountants
Why does one need a small business accountant in Etobicoke?
Have you ever wondered what an accountant does for a small business? Have you tried to manage your accounting, but your workload is too demanding to handle? Hiring an accountant is one of the best business decisions you can make when it comes to running a stable and healthy small business.
Accountants can help small business owners in several important ways, but what can an accountant do?
An accountant can help an entrepreneur manage the entire financial system of a small business. Accountants can help with financial analysis, accounting software integration, and compliance, as well as provide advice on loss or revenue growth and how to improve a company’s financial health.
Accountants can do more than just manage your company’s finances; they can also advise, recommend, and even implement systems and software that save you time so you can focus on what you do best.
In this guide, we’ll tell you everything you need to know about accounting as a business owner. Read on to find out why you should consider WebTax Online to grow your small business.
What is small business accounting?
Small business accounting requires accurate accounting, which includes keeping organized records of the company’s financial transactions, including sales, expenses, assets, and liabilities. If this is your first time in small business accounting, visit our helpful glossary to learn basic accounting concepts.
In some cases, small business owners may prefer to hire individual professionals or small business accounting firms that specialize in small businesses. Other companies hire temporary accountants at certain times of the year or hire part-time accountants with advanced training.
- Advice on how best to structure the company before it starts
- Advice on the financial details of your business plan
- Identification of potential cost savings in operations
- Payroll management
- Create a financial safety net in the event of catastrophic events or growth difficulties
- Relations with the IRS in the event of an audit
Although many small businesses start with the owner as of the sole employee, it ultimately pays to outsource accounting duties to a professional. In this situation, companies may choose to hire internal or external accountants from any small business accounting firm.
For younger and growing companies, using an accounting firm offers some flexibility. Leaving the company to the consultation helps companies that need their expertise several times a year.
This cheaper option still offers a high level of accounting knowledge. Small business accounting firms generally charge hourly rates, although some analytical functions are more expensive than others. If you are unsure, evaluate the initial costs compared to what the business can save you over time.
They are Accounting experts
- CPAs are trusted licensed consultants.
- Experts have a basic knowledge of tax law.
- Accountants can assist with the IRS audit.
- Accountants can help develop a business growth strategy.
These companies are well established and have trained staff with qualified CPA. However, their large size leads some small businesses to prefer smaller accounting firms that will not lose them among their larger clients. Smaller companies are generally much cheaper and can provide personalized accounting and tax services for small businesses.
For incumbents, hourly rates for accounting firms can be exaggerated as transactions become more complex. In this case, it might make more sense to hire an internal accountant.
As a business owner, keeping accurate records can help meet several business purposes, including:
Registration of business transactions
The main and most important of all accounting goals is to keep accurate and systematic records of all financial transactions that take place in the company on a daily basis. Maintaining a simple double-entry system or using a software platform such as QuickBooks can help you keep track of all your outgoing income and expenses.
With a systematic and organized approach, business owners can easily retrieve past records and control transactions when needed.
Maintaining a number of accurate accounting records can also be a great help in a variety of decision-making processes for owners, managers, and other stakeholders. Accounting can help identify underlying business issues that can then be addressed appropriately to increase efficiency and profit margins. Without accounting, making informed business decisions would be almost impossible.
Benefits of accounting for small business owners
Running a small business is not an easy task. The entrepreneur faces many challenges and problems, especially in the early stages of business. It is often at this early stage that most small business owners lose sight of the importance of bookkeeping.
In fact, poor financial management is the most common reason why small businesses fail during the first year of operation. With limited budgets and resources, small business owners can quickly lose track of how much they spend and how fast they do it.
It is therefore essential that accounting is paramount during the first period of operation, as it offers a number of benefits, including:
Follow regulations and legal requirements
Canadian law requires all small businesses to keep accurate financial records of all business transactions. These financial documents must then also be made available to shareholders, tax authorities, and other regulatory authorities. These financial statements are also necessary for the purposes of reporting direct and indirect taxes.
Control and responsibility
By following Generally Accepted Accounting Principles (GAAP), the entrepreneur is able to implement routine accounting controls and controls to help identify anything out of the ordinary.
This helps prevent losses caused by theft, mismanagement, human error, fraud, and obsolescence by protecting the company’s assets. Greater control also leads to better accountability because everything is transparent and easy to find.
Access to business and financial performance
One of the biggest benefits of accounting for any business owner is the fact that these numbers, when compiled into financial statements, help determine the company’s actual performance. These financial reports identify and measure key performance indicators that help entrepreneurs understand how well or bad the company is doing compared to previous years.
The final or quarterly reports also reflect the company’s financial situation at the time. How much money do you have at your disposal? How much capital has been invested? What are your current commitments? Does the company make a profit or manage a loss? All these questions can only be answered by following small business accounting procedures.
Track cash flow
As an entrepreneur, you should always know how much money you have at hand at any given time. This can help you make more informed business decisions based on your current cash flow situation.
Financial statements are needed to increase capital
Without proper accounting records and financial information, it is not possible to obtain a small business loan from a bank or any other credible financial institution. Bankers and potential investors are very likely to invest or lend to companies if they believe that the entrepreneur understands their corporate finances well and understands the various financial implications.
What is the role of an accountant in a small business?
Whether you have a large company or a small company, an accountant can become one of your team’s strongest assets.
If you don’t understand basic accounting or your business is growing fast, an accountant can help you by alleviating the effort of managing corporate finances. It’s all the work in itself, and if you want your business to be successful and prosperous, your priorities need to focus elsewhere.
Accounting software can do a lot now, but you’ll still need to analyze your cash flow and keep in mind how your income affects your business plan.
For small businesses, accountants are the main organizers and operators of the company’s entire cash flow function.
That’s basically what an accountant is, but how exactly do they do it all?
How can accountants help your business?
One of the jobs that an accountant can help with is bookkeeping. Accounting is needed to track your company’s total revenue and compare incoming money to the costs you usually have to pay monthly.
This in itself can be time-consuming, and a good accountant devotes much of his effort to carefully monitoring your small business finances. A great accountant will tell you to step by step what your income is, whether you are making a profit or a loss, and what you need to do to turn a loss into a profit.
In addition, the accountant will also process all year-end reports for the company as well as all reports required for the tax period. They can also prepare a brief overview of your company’s finances that will allow you to make accurate business decisions.
At WebTax Online, we strive to be accessible because we understand that accounting can be intimidating and daunting, but our friendly team is always on hand to offer advice and peace of mind. We provide top-notch accounting and tax services for small businesses.
With many years of experience in practical practice, there is no doubt that we could not cope. We are affordable and can save you money, but we also believe in offering excellent services at an excellent price.
Focus on small business owners
All our accountants have an overall philosophy that not only provides top accounting services but also offers help and full integration with a small business.
We help entrepreneurs prepare financial statements that not only ensure compliance with company regulations, but we will arrange a meeting with you to discuss the impact of financial data. As an entrepreneur, you want to understand what you are subscribing to and why.
We believe this process helps client’s support more productive and critical business relationships with their accountants that go beyond just preparing financial statements.
Small business finances often fluctuate, and when you add personnel costs, taxes, rating agencies, and compliance with all financial regulations, including VAT, it’s great to have a kind of business advisor on your team in regards to the financial aspects of your business.
What other services may your company need?
We’ve talked a little bit about accounting and tax services for small businesses, but there are many more services an accountant can provide.
One of the most beneficial is the creation of financial statements that include management accounts. A financial report usually takes three different forms: a cash flow statement, a profit and loss statement, and a balance sheet.
Small business owners should regularly review their financial statements to obtain an up-to-date report on the income that enters their business and the costs that accrue. These reports are very useful during the fiscal season and can also allow you to see changes at certain times of the year or other trends that may affect the profitability of your business.
When you hire an accountant, you can also get a regular cash flow analysis that shows your company’s cash flow at specific times and what is available, which then determines how much money can be withdrawn or reinvested in the business through updates or additions.
A budget is also a useful tool that an accountant can provide. The balance sheet allows you to see exactly how your company and bank account work together at a specific time. This sheet shows what you own and what you owe and can offer an easy-to-read overview of the success of your business.
An accountant may also be on hand to advise you, for example, if you need another corporate bank account, if you need to improve payroll procedures, how to increase sales, how to maintain financial growth, how to stay in line with the CRA, how to analyze data, the list goes on.
We offer all these services and make sure that our accountants are not at hand just to keep your books and go all day.
How much should I pay the accountant for my small business?
The accountant should pay for the costs involved. If an accountant does not help you save time, money, and stress, then there is no difference between an accountant and a random accounting software system. At WebTax Online, all of our corporate clients pay monthly by direct debit until the end of the year. Contact us for more information.
Accounting is charged based on the number of transactions made through the bank and the number of purchase invoices/receipts per month. For business accounts and tax returns, our fees are customized, so please contact us so we can explore exactly what you need.
We can discuss the price in more detail during the consultation. We want to make sure you have everything you need in the field of accounting and that you are not burdened with features that you do not need.
Is accounting important for overall cash flow?
An accountant can help a company save money, even with the added cost of paying an accountant. It doesn’t matter if you are a small business owner, a self-employed person, or anything in between; an accountant who understands your business will allow you, the business owner, to focus on the importance of being the company itself.
Accounting is one of the activities that can prevent you from developing your business or building a customer base. By entrusting your accounting to an accountant, you will save time and be sure that your finances are in order. They will also ensure that you have adequate accounting records in case you need a CRA audit.
In principle, you need to have competent and accurate accounting for your small business if you want to have accurate data to see all aspects of your company’s cash flow.
The accounting process is so crucial to the overall success of your business that you’ll want to make sure it’s 100% correct in every little detail on profit and loss. The cash flow of a small business can change instantly, and once you have a knowledgeable and curious accountant on your team, you can fully understand the changes and get advice on how to best move forward.
Anyone can enter data into a software system, but only a skilled accountant can actually analyze what he sees and then compare the numbers with the exact nature of the business.
The importance of accounting and accountants in a business
Accounting helps business owners track assets, liabilities, income, and cash flows. This is extremely beneficial because it helps owners, managers, investors, and other stakeholders to monitor the company’s financial performance, enabling them to make much more informed decisions.
Accounting is also essential for tax authorities. Every small business owner in Canada is required by law to keep records of all income and expenses for tax purposes. Failure to comply with these accounting standards can lead to legal problems and heavy tax penalties.
Accounting is the language of business. Understanding accounting involves a logical way of thinking. The numbers don’t lie! In fact, they help to create the most accurate picture of the current state of any business. Applying accounting principles and accounting standards, such as IFRS and GAAP, can help an entrepreneur achieve many of its business goals.
The need for accountants
If accounting is not one of your strengths as an entrepreneur, you should seek the services of one of the best accounting firms in Canada, which has a highly trained and professional Canadian accounting consultant.
Always keep in mind that the key to the growth of any business is the regular preparation and review of financial statements to identify potential operational inefficiencies and anomalies within the company.
To save costs, it can be tempting for any small business owner to try to manage corporate finances on their own. However, financial matters are not always easy and often require a qualified professional to deal with them. Accountants can help business owners make smarter financial decisions and can also help ensure that a company meets all compliance requirements.
Frequently asked questions
What does the accountant do?
The accountant deals with all financial matters of the company, such as the keeping and interpretation of financial records. They can oversee responsibilities such as reconciling bank statements and calculating payroll to keep the company in a good financial position.
What are the duties and responsibilities of an accountant?
The responsibilities of the accountant can be quite extensive, from reviewing financial documents and conducting financial audits to reconciling bank statements and calculating taxes while completing annual reports.
What Makes a Good Accountant?
A good accountant is not only someone with financial skills but also an expert in interpersonal relationships and communication. They must have exceptional integrity in supervising financial documents and must have strong communication skills to be able to present detailed information in an easy-to-understand way.
Who does the accountant work with?
Accountants work with business executives in small businesses or with managers in large corporations to ensure the quality of their financial records. Accountants can also work with individual team leaders to find and check financial records throughout the year.
How can I do accounting for a small business?
Small business accounting usually includes three key reports: a balance sheet, a profit and loss account, and a cash flow statement. Businesses carry out accounting activities manually, using accounting software, or through professional accounting services.
What are the best accounting practices for small businesses?
Key accounting best practices for small businesses include keeping corporate finances separate from personal finances, keeping accurate records, and tracking income and expenses. Small businesses might also consider hiring a professional accountant or automating their finances using accounting software.
What is the most used accounting software?
Common small business accounting programs include QuickBooks, Xero, and FreshBooks. Each platform offers powerful features for small business owners, including accounting tools, point of sale features, and mobile applications.
Does my small business need a CPA?
Many self-employed workers do without accountants. However, working with CPAs offers many benefits to LLCs and corporations. The CPA can analyze your accounting records, assist with payrolls and taxes, offer financial advice, and represent you in IRS audits.
Should I hire an internal or external accountant?
It depends on the size of your company and the complexity of its operations. The cost of external accounting usually increases with the size of the company. At some point, he can hire a professional who will take care of the internal accounting, saving costs in the long run.
Being a small business owner isn’t easy. Most small business owners often find themselves without employees and with insufficient funding, which means that in most cases, they have to look into different departments of the company. With so much going on, keeping track of everything can be quite difficult, and when it comes to accounting, such delays in keeping records can have devastating consequences for a business.
Let’s get in touch
We don’t just guarantee the quality of our work, but we also promise highly competitive rates which will definitely be affordable for your business. send us a message with your inquiry or call us today.
How can WebTax Online help your small business?
At WebTax Online, we will work closely with your company at any stage to prepare and archive your legal accounts.
Our team of accounting experts can help you set up internal systems to help generate management information. If we take the next step, we can interpret the numbers that the system generates and then work with you to create new strategies for your business.
Let’s get in touch
If you need to file your personal tax return look no further. The accountants at WebTaxOnline can get your work done for you at very competitive rates. Call us or send an email today. Just get in touch with is and we’ll be sure to get back to you within 24 hours with the relevant information regarding your personal tax return.