Tax News & Articles

When & Why You Should Hire An Accounting Firm For Your Small Business

July 16th, 2021
When you’re looking to get your business off the ground, an accounting firm can be an excellent resource for advice to ensure your business is on the path to long-term success. As a business owner, you have a lot on your plate to manage, including payroll, annual statements, taxes, financial projects, cash flow, and much more. When you try to handle all these aspects yourself as your business and finances grow, details can get missed and mistakes overlooked. By hiring a Nanaimo accounting firm like Cross & Co, you have a strategic partner by your side that can offer your company in-depth financial expertise at every stage of your business growth, from creating a business plan to preparing taxes and everything in between. Below, we provide a brief breakdown of when you should hire an accountant for your small business and the benefits of delegating your finances to a knowledgeable accounting firm.

Creating a business plan

When you’re preparing to launch a startup, a sound business plan is essential to ensuring your business starts on the right financial foot. By hiring an accounting firm, you will have access to someone with the financial knowledge and experience needed to help guide you through each stage of the business planning process. Your CPA can help you assess the feasibility of your business model, create accurate and realistic financial forecasts, alert you on potential risks, and advise you on strategies that will make your business profitable and sustainable. 

Setting up your business

Before you register and launch your business, an accounting firm can explain the legal structures available for your company and help you choose the best one that suits your needs. The legal structure you select for your business can affect your ability to generate revenue, tax obligations, tax liabilities, and legal protection. Legal structures your accountant can help your choose from may include:

  • Sole proprietorship
  • Partnership
  • Corporation
  • Society
  • Registered charity
  • Trust

Filing taxes

One of the most common reasons business owners hire an accounting firm is tax filing purposes because taxes can be incredibly complex. Using their knowledge and expertise, an accountant can help you save more by determining your tax filing requirements, identifying which deductions you need to record throughout the year, and finding you credits that your business may qualify for. In addition to filing tax returns, an accounting firm can assist your company with other financial tasks, including:

  • Ensuring your company is up-to-date on the latest tax laws.
  • Completing and filing the required legal documents for your business.
  • Preparing annual statements.
  • Managing your payroll and ensuring that all employees' payments and tax codes are recorded accurately.

Choosing the right accounting software

Some companies choose to do their day-to-day bookkeeping and work with an accounting firm on a monthly or quarterly basis. If you decide you’d like to take over your own bookkeeping, an accounting firm can help you choose the right accounting software for managing your business model. Common accounting software products include Sage Simply Accounting, QuickBooks and Xero. A Nanaimo accounting firm like Cross & Co. can also provide training support for your new in-house bookkeeping team to ensure this transition goes smoothly.

Need help from an accounting firm in Nanaimo, BC?

Do you need an accountant for your startup? At Cross & Co, we have years of experience supporting businesses across Vancouver Island, including Nanaimo, Ladysmith, Parksville, Qualicum, Port Alberni, Duncan, and Lake Cowichan. If you have a startup business in need of financial statements & reportingtax servicesfinancial consulting, or bookkeeping services, contact us by booking an appointment today!

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