The accountant that you choose for your business plays a vital role in bringing in success. Apart from ensuring that all financial transaction of the company is in place, they also serve many different services that help promote the success of the business. They take care of the systematic recording of the books, the computation of the taxes and the identification of the different ways the company can reduce its taxes. However, when the simple procedures are not taken care of, it might be time to think of hiring a new accountant for your business.
Outsourcing your accounting work from an established accounting firm in Edmonton is always the best way to go. Not only will a lousy accountant ruin the books, but it could cause multiple problems for the company. But how do you know that it is time to hire a new accountant? Here are some tell-tale signs:
- They file the returns late. Tardiness in filing for tax returns is not a good sign. Not only do such actions attract penalties that could cost the company more, but it could be a precedent of something worse. A professional accountant knows the importance and high value that comes with the work that they do. When they hand in their work late, they are not doing the job they are supposed to do. If talking to your accountant isn’t working, then it is time to hire a new one who can do the situation with the utmost professionalism.
- How well does he know the craft? Accounting is not for everyone, and only those who know the terms, processes and the laws should be doing the job. Whether it is about tax-free benefits or tax deductions, it is essential that you work with an accountant who can explain these ideas to you with confidence and ease. Inadequate knowledge of all these accounting terms should be a clear sign that you need to hire a new one right away.
- Most small businesses and start-up owners need a thorough explanation of their financial statements. If the accountant you are working with is not equipped with the skills to help you understand such, then making the business grow financially may become more challenging than it already is. When your accountant could not answer queries that you might have concerning your financial statements, then it is best to look for an accountant who can.
Not all accountants are the same. When your accountant is hiding information from you, could not explain the books or is seemingly manipulating business accounts, it is time to consider hiring a new one. Make sure when you hire a new one, outsource it from reputable accounting firms in Edmonton to ensure the quality of work that you will get.
The amount of money that you have to fund expenses in the business falls under the category of capital budgeting. At the beginning of the business, the money that is put into establishing it is considered an investment. The types of machinery, rental as well as the purchase of materials and hiring of people are all considered part of the capital budget. How do you determine whether an investment is worthwhile or not? The process of capital budgeting needs to be done as efficiently as possible. Here are some of the significant points that you have to consider:
- It requires a large amount of money. Capital budgeting involves a considerable amount of money put underinvestment. This is one of the reasons why the process needs to be done by the books. Every decision made should be thoughtful and wise to ensure that it will grow in value once it is put out on the market. Only knowledgeable and correct investments will bring back the money; otherwise, the company will incur losses even before it earns anything.
- The decision where to put the money for investment is irreversible. It means if you have decided to purchase machinery and later realize that it is of no use, selling it won’t bring back the investment. It already means a loss for the company. The market value of used machinery (whether or not it has been used once, twice or many times) is practically lower than its cost if it were bought brand new.
- Putting together a capital fund for the start-up of a business requires a huge amount of money. This amount can be further subdivided into particular areas of the company that needs to be covered, including purchases and rental payment that need to be paid. Making one wrong decision could mean a massive loss of the start-up business as well, that’s why it is important always to make wise choices on where to put your money.
- Your budget today is not limited to what you spend on today. It always involves the future of the company. When proper capital budgeting is done right, it can help you plan for future business developments. Therefore, before you execute any business decision, whether it is a purchase or an investment, make sure to think about where you plan your business to be in the future. In the process, it is best to include an accountant in the planning. Not only will they serve as a financial advisor, but they can help you foresee possible implications your investments may have on the tax you need to pay for.
While you are in the middle of capital planning, this checklist will serve as your guide to keep you on the right track. Before final decisions are made, especially those that have implications on the investment, make sure to consult an accountant you trust.
If you are running your own business, you should assign somebody else to maintain your finances for you Doing both can be a bit overwhelming. You have to make sure you have certified accountants in Edmonton to look after your business finances. Although some business owners may think that it is best to do their accounting, not to mention that they believe it would be so much cheaper, it comes with its own set of disadvantages as well. When juggling too many responsibilities, there’s no doubt that mistakes will happen.
Sadly, such mistakes in the financial books of could create much more significant problems during the audit of your company’s financial statement. Whether it is an annual audit or a random audit of your firm within the fiscal year, it is essential that you know what to prepare. Not only will this make the review easier and faster, but it will prove it more efficient. Before the accounting firm in Edmonton comes in to do the audit, here are the things you must get prepared:
- Keep the Books Updated, Daily if Possible
If you want to save yourself from doing all the tallying days before the accountant arrives to do the audit, make sure you got all the books updated to date. In businesses when monetary transactions are formed on a day to day basis, it is suggested that you keep the books updated every day. Maintaining the books updated will help you not to forget essential transactions later. After all, the tally of the books will be the first thing that the auditor will look for. It is best that it is ready.
- Keep the Receipts Organized
Whether the audit will happen today or tomorrow, you have to make sure that the receipts are ready and are piled up accordingly. Whether it is incomes or expenses, everything must be arranged according to date. The chronological arrangements of the receipts will help keep the time spent double-checking book entries to a minimum. When the revenues are readily accessible to the accountant, it will make the auditing so much easier.
- Keep yourself Ready and Open to Questions
It is certain that the auditors will have their questions to ask. Ost of them to clarify the details of the expenses. Significant changes, whether it is the rise of fall in expenditures, will bring them to ask you some questions to help clarify and justify the changes. The other problems may concern the accuracy of the entries in the books. And then there are issues about tax compliance of the company. Be prepared to answer all the questions. After all, they are there to help you clear the books and get the balance that you need.
With so many things that need to be done to keep the business running, it is best to ask the experts to prepare all the necessary documents, including the books, for the audit. The audit is aimed at ensuring that you know the flow of cash in the business.
No business owner can ever tell what’s in store for the business in the coming months. Although most of them would be hopeful that they’d be able to grow their business and bring in more profit, not one of them could say that one strategy will make it work for them today and in the future. Half of the year has passed, what have you done for your business? The next six months will be crucial. It will present both opportunities for growth and risks for failure, that’s why you should always be ready for what will come your way.
Overcome the risks and take advantage of the growth opportunities when they come your way. Be prepared to sit down and make a financial plan for how it can be done. It is essential to know what you need to be financially prepared for in the next six months for the lack of it will have a direct impact on the success of your business. What do you need to do? This is where you begin:
- Keep Yourself Updated
- Make a List of Possible Expenses
- Update your Knowledge Regarding Taxes
Whether it is the beginning of the financial year or in the middle of it, there’s no denying how important it is to plan, especially when it concerns your business finances. In the midst of all these, you can count on an accountant in Edmonton to help you through it. All you need is to ask for help, and it will come.
Every start-up business owner will agree that doing things on your own is the best way to save on costs. There is always that strong urge to do everything requires of the business to ensure that you are on top of everything. However, when you ask business experts, this practice isn’t the best one after all. It is critical that you consider hiring people who are experts in their field to do the job – especially when it comes to business accounting. Even if you are an accountant yourself, it is still best to have someone do the accounting of your business for you.
At this point, you might be wondering when the right time to hire one is? Do I need to hire an accountant now? Here are situations that will help you realize that hiring an accountant now may be the best decision you’ll ever make for your business:
- When the recording of all the expenses becomes time-consuming. Whether you are starting up or are in the process of growing your business, keeping up with the cash flow can be quite tough. There is that constant need to put the figures in the books, achieve a balance in the sheet, not to mention the computation of taxes. If you have an accountant, you are buying yourself not just expert work, but some free time as well. When it feels all too overwhelming to balance the books, hire an expert accountant in Edmonton and get yourself some time to focus on growing your business like you always wanted to.
- When you are new to handling business or know very little about accounting, then hire an accountant now. Just like any other skill, accounting takes a lot of time to learn and master. It requires a whole lot of practice not to mention the exposure to various sheets that will show you all the possible ways you can save on business costs and taxes. Rather than wasting your time on a minor part of your business, you should focus more on marketing it to grow as an empire. Leave the accounting to someone who knows it all too well.
- How much of the tax regulating your business do you understand? Dealing with such and the changes that it comes with can be quite tricky, that’s why it is best to leave it to the expert accountant who can be on top of it. Not only are they knowledgeable of the regulation, but they can also decipher the meanings of such laws – which is very important in keeping the business afloat.
When you ask yourself if you should hire an accountant to do the job for you, you wonder if it is worth it. ATS accounting will be of great help.
Federal or provincial? These are the two types of incorporation you choose from whenever you decide to incorporate your business. Perhaps it has crossed your mind a couple of times in the past. In fact, you must have thought of it the moment you decided to start your own business. Other people you have consulted regarding incorporating your business, in the beginning, must have discouraged you from going for it. And most expert accountants in Edmonton would only tell you that the decision is solely based on what you think.
Is business incorporation necessary? Law does not require it for all businesses, that’s why it is essential to know when the right time is for you to incorporate your business if you decide to. Although you may have apprehensions concerning it, incorporating a company comes with its own set of benefits, and that pertains to taxes.
Have you heard of small business tax deduction? The tax on businesses that fall under it is calculated at the rate of 17% of the first $500,000 income. When you incorporate your business, it means that you are distributing the shares of the business to the people that you trust. Most business owners who decide to incorporate the business declare their family members as shareholders of the company. Since the income doesn’t go to one person alone, the tax that you are charged with becomes smaller.
SBD or Small Business Tax Deduction may perhaps be the best form of tax exemption that you benefit from incorporating your business. Apart from that, you become more in control of when you will receive your share in the income earned by the business. This means that you can decide to distribute income when the tax rates are low. Such manipulation can be done best with the help of an expert accountant or an accounting firm in Edmonton.
Lastly, tax deferrals are also one way you can potentially save on tax payments in case you decide to incorporate your business. Ask an accountant in Edmonton for help to help you understand how your business can belong to the lower slab in case of tax rates.
Whether you decide to incorporate your business is really up to you. But to make a wise and sound decision, it is best to consult the expert on what to do. Only trusted accountants in Edmonton can honestly explain to you what comes with the choice and why it is best for your business today and in the future.
How do you put together a business plan that sells? More than being a benchmark for success and growth, a good business plan must be able to attract potential investors to come in. Acquiring funds for business is not limited to how much the company earned over a span of time. Money could also come from individuals or institutions who are interested in investing in your business project to help it in its expansion. More than any other endeavor, creating a business plan that will get you the money that you need to improve your business.
You’ve prepared yourself for the sales pitch, but before you present anything, potential investors will always look into your business plan first. You must make sure that the plan is clear, concise and complete. But how do you get it done right? Here are some tips to do it:
- It must highlight all the key factors that make your business a success. The growth of the business is not dependent on one factor alone. In fact, it may be a combination of a number of factors working together. However, it is important that you are able to visualize this for your target investors. When they see that these factors are actually tangible and controllable, they can easily realize what they can expect when they put their money in your business.
- Be positive in your tone when it comes to packaging your business. Load with a lot of positivity and enthusiasm. The goal is to compel your investors to put their money in your business immediately after reading your business plan. What goals have you set for your company? Include that alongside the mission and vision of the company.
- Clearly define the potential of the business to grow even more. The growth that it has had in the last few years since it started its operation isn’t enough to get investors to sign in. They have to see where their money is going and how far it will grow. Identify your market and let them see for themselves how knowledge of your clientele will help in growing the business.
- What is the business idea? Assuming that the investor already knows what the business is about is one of the biggest mistakes that you can do as a business owner. When you present the business plan, make sure you explain the jargons that you used. Make the presentation as simple as possible. Complicating it will not get you the investment that you need.
These tips will help you put together a business plan that will sell. Follow it religiously, and you’ll be surprised at how effective your business plan will be.
Do you own a small start-up business? Have you ever been told to get an accountant to help you with the books? Perhaps you have repeatedly been given this advice, but you thought you might not need one now as the business is just starting to pick up. In fact, you have thought about doing your bookkeeping in hopes that you will be able to save on costs. An accountant, after all, can be quite expensive.
Seeking help from public accounting firms in Edmonton is always something that you have second thoughts about doing, but you know it’s the right thing to do for your business. These professional accountants do not only look after your accounts now, but they also consider the stability of the company in the future. While it may seem as if you are saving money by not hiring a professional to do the books, the risk of whether you have done it right or not is always there.
Before you give in to the idea of doing your accounting on your own, here are some risks that you might run into when you do it on your own:
· It’s a Distraction
As the owner of the business, your goal should be focused on making it grow, to reach out to new markets and develop its potential for growth and collaboration. How do you develop and grow a business efficiently when you have other pressing matters like the accounting to look after? You don’t need the extra distractions at the moment, and that is what the company books are. Your divided attention will only make you commit mistakes that you shouldn’t. If you do your marketing and your accounting, you’ll have too much on your plate. Choose one. Delegate the other to those who know better. Accounting can be a distraction that you don’t need.
· It will Consume your Time
Did you think that doing your business accounting won’t be as time-consuming? Everyone who is just starting out thinks that they don’t have much to do considering that there is no steady cash flow yet. It’s easy to assume that until you have to do it. It will demand a lot of your time. And if you fail to provide it with the time it requires, your entries in the books will be all over the place. It will look out of order, and this could cause confusion that could mean losses for your business in the long run.
· It Requires Professional Knowledge that you don’t have
Are you an accountant yourself? If you are and you have the time, then go and take care of your books. But if you are not, it is best to delegate the task to someone who knows how to do it. Having a professional accountant in Edmonton who will focus on your books and calculate your taxes means getting all the help that you need. They will make sure that your company will abide by the rules of the government in terms and in processes to avoid delays in payment and mistakes in the methods of accounting.
Hire a professional accountant, and you will never go wrong. You can take care of the other aspects of the business that you are good at.
Starting your own business has always been your dream. Everyone who knew of your plans told you what a good move it was going to be – for yourself and your career. The road to success was not easy, but it taught you well. It gave you a sense of independence. Being your boss comes with its own set of responsibilities, and as they said, you have to do what you have to do to make things work. But how about your salary? How much should you get paid?
You have put in good money into this investment, and now the business is running smoothly, and there’s steady cash flow. That’s good news! Perhaps the only question left unanswered is whether or not you should get paid. If you are to be paid, how much should your salary be worth? Accountants in Edmonton have got a few tips you need to remember before getting your salary as the boss. This is to make sure you don’t overpay yourself and lose your business investments in the long run.
Tip 1: Only Take Part of the Profit
The payment that you get as the owner of the business depends on a lot of factors, including the nature of the business itself. If you are the sole proprietor of the business, you not considered as an employee of it. Thus you shouldn’t get a salary. Instead, you can draw from the company profits instead. The term distribution, on the other hand, should be used when the business has more than one owner. How much you draw should not be more than the company could afford at the moment. To determine this, you need to consult an accountant in Edmonton.
Tip 2: Get Salary Just Like any Other Employee
You are the boss. You are the owner of the business, but this doesn’t mean you can get as much money from it as you can. In fact, before you do get a salary, it is crucial that you establish a payroll account with Canada Revenue Agency. The salary you will get will be taxed like the other salaries your employees are getting. To develop a good payroll system, make sure you work closely with an accountant you can trust.
Tip 3: Consider the Taxability of the Salary you Ought to Receive
The nature of your business will help determine the amount of tax you ought to pay the government. When you are running your own business, worrying about the tax might not be one of your primary concerns. For this, you should have accountants Edmonton to do it. The amount you pay is based on the profit your company earns. Let the experts take care of it for you to avoid penalties and surcharges in the long run.
Managing your own business comes with duties and responsibilities, and it’s only right that you get paid for doing what you do. However, the amount you get should also abide by the rules you and the government have put in place. In all this, an accounting firm you can trust can help ensure that you are paid and that your business remains financially secure.
In the span of time that you have been running your business, have you ever asked yourself what you consider as its assets and liabilities? When it becomes a challenge to balance the sheets, it means that something is wrong. When defining the assets and liabilities of the business becomes challenging to identify, then you must seek the help of a professional accountant. Not only can they help you find balance in the sheets, but they can also help you identify what you should consider as assets and liabilities when you list them down in the books.
What do Assets Mean?
Assets are items that have become a property of the business. They can be both tangible and intangible. The tangible ones include all the items that can be seen as part of the business operations including the office tables, chairs, printers, machinery and the like. On the other hand, intangible items are those that you cannot see or touch but you know is part of the business like patents, investments, and even good customer relations. Assets are called such because they can be used to help the business gain more today and in the future.
What do Business Liabilities Mean?
Liabilities of the business include all the items that you use to make the product or provide the service that is yet to be fully paid. Whether it is a loan you took out from the bank or the salary of your employees that you are loaning for, they are considered business liabilities for they are not yet paid. Their cost will then be added to the company expenses, making you lose profit within a specified period or until the loan made has been fully paid.
How do You put Current Assets and Liabilities on Record?
Do you have assets that can be converted to cash within the fiscal year? These are the assets that will fall under current assets. These assets could include all forms of cash or cash equivalents, inventory, account receivables as well as other company liquid assets that can easily be converted to cash. Current assets play an important role in keeping the company afloat. They help ensure that the payables and dues are paid on time. Such assets help maintain the day-to-day operation of the smooth business sailing.
Current liabilities, on the other hand, are the bills that need to be paid every month, does that require a monthly or quarterly payment as well as short-term debts that need to be settled within the fiscal year. Every business must have working capital. Accountants suggest that companies have this fund to keep the day-to-day operation going without the need to incur debt.
The challenge to every business owner is to keep their assets higher and their liabilities to a minimum. Working closely with an accountant you trust will help your business achieve a positive working capital, allowing your business to be as efficient as you want it to be.
Have you recently updated your business cost sheet? Whether it is a list associated with production, administration or the distribution of a product, every company must have its cost sheet. The more important part of having a cost sheet is keeping it updated as often as possible. The sheet is in itself a reminder of how you should calculate the cost of the product to determine the margin of profit that you gain when each one is sold. Also, it will help ensure that you can set up prices of other products that you decide to sell in the future.
Did you know that the cost sheet should be prepared even before you begin business operations? If this is how important it is to keep track of the flow of money in the business, it is also best that you know what should be in it. When you prepare the sheet, make sure that you include all the details necessary. Not only will it be helpful today, but it will serve as your guide to adequately prepare cost sheets in the future whenever you decide to add more products to the list you already have.
· First, your cost sheet must contain a list of all the products that your business is selling. Alongside these items should be a list of how much they cost when you procured them. On the column beside it, make sure to list down the price rate that you are selling it for. Whether it is a product or a service that you are offering, it is essential to put them on a list. Once you get a list of the total cost of the item, add the percentage of profit to help you arrive at the expense of each item or service.
· Second, be sure to include the source of the items that you are selling. If it comes with a shipping fee, then make sure to cover all the expenses incurred to get the item to you. All these should be shouldered by the cost of the item to make sure that you don’t lose money on your investment. The goal of every business is to earn; thus, you have to make sure that you include all expenses and have put them on a list.
· Third, the cost sheet must also include the details of the supplier as well as the details on the partner shipment company. These details will help you during the evaluation of the services and products you have been provided with. When it seems as if the relationship with these providers are no longer as productive as they used to be, it is best to rethink if keeping the relationship with them is still right for your business. When you decide to reconsider, the cost sheet will help you during the evaluation.
Preparing the cost sheet may be something that’s easy to overlook. However, it is the document that can be extremely beneficial for your business in the future. When its preparation becomes a challenge, it is best to ask a professional accountant to help you. They can prepare the cost sheet as well as explain the implications of the potential increase in cost and decrease in sales. All you need is a certified accountant to get the job done right.
The auditing process conducted on a business institution looks into possible errors that may have been entered in the books. When accounting professionals find the mistakes, they immediately work to correct the data to avoid the wrong data from being used further into the recording. It may result in an unbalanced book or worse to make the financial statements unreliable. Mistakes that may be due to the wrong input of data or a typing error must be corrected immediately. But experts say that correcting the data is as important as understanding how it was committed.
There is no doubt that a seemingly simple accounting error impacts the overall financial status of the company. The cash flow, capital, profit and even the tax that your business ought to pay are affected by simple errors inputting the data in the system. A variety of things may cause the errors, but here is a list of the most common accounting errors committed by businesses.
· Imbalance in the Financial Statement
There are two types of balances that most companies have to keep a record of – the revenue account and the expense account. Both of which contains a list of when the money came into the company’s account and when it left. It practically shows business owners the cash flow. The revenue account must contain the cash inflow showing the actual credit balance of the company. On the other hand, the expense account must incur the debit balances. When the wrong data is put in the wrong balance sheet, the differences may result in an error altogether.
· Input of Data in the Wrong Year
Each year, the accountants tally the books in hope to achieve a balance in the ins and outs of cash to show whether the company earned or not. More than the simple recording of expenses, the books also ensure potential investors that they are putting their money on something useful. However, most businesses fail to keep their book closed for the fiscal year. When the books have been closed, remember not to go back to change any of the details. It is best to keep it that way. Unless it is a transaction that needs to be input in the records, it is best to have a professional accountant do it for you.
· Opting not to Include Particular Expenses or Details
Omitting data from the records may seem like nothing, but it can affect bookkeeping altogether. When you choose to delete data that should have been recorded, it can be the primary reason why your sheets are not balanced.
What’s the best way to keep you from committing these mistakes? Assign a professional accountant to take care of your business accounts. They are accurate, and they can make the process less consuming for you. Having the right audit firm will save you time and money in the long run, not to mention keeping your business from having an untrue financial statement.
Hiring a professional accountant may be one of the best decisions you could ever do for your business. Not only does it mean professionalizing the books, but it means putting your finances on the right track. When it comes to business, it is essential to know the flow of money to ensure that your business is earning as much as you want it to. After all, managing your own business is not a walk in the park. It requires skills, time and focus. With an accountant working with you, your business is in good hands.
But finding the right accountant can be a challenge too. Don’t fret. These tips will help you find the right person or team for the job:
· Tip 1: Ask them if they are Available
With a shortlist of accountants on hand, it is relatively easy to pick one. The first thing to ask is whether they are available to do the work for you. When they say that they are, the next thing to ask is how often they are available to consult with you regarding your financial concerns for the business. Their available will allow you to open doors for communication – the basic foundation of a good relationship with an accountant. When you agree with their availability, then you are off to a good start.
· Tip 2: Talk About Their Rates
Assuming that they already know how much budget that you have to pay for their services won’t do you any good. The best way to hire an accountant is to be straightforward with them, especially when it comes to your budget. Some accountants might bill you for every service that they provide. Others will charge you for the period that they have worked for you. Choose to work with someone whose rates fit your budget.
· Tip 3: Ask your Friends About it
Asking for referrals is one of the most effective ways to hire professionals for your business. These referrals come from satisfied clients, which means that the person they are recommending for the job has provided them with satisfactory work. Don’t be afraid to ask personal and professional connections for referrals. After all, a good word put in for an accountant by a client means a lot. They might be so good.
Looking for an experienced, reputable and affordable accountant for your business may not be that easy. But with these tips in mind, you know you can never go wrong.
This is one of the many questions that a starting business owner would ask. Although most of them knows the answer to it, some would leave the thought of thinking they could do their accounting without professional help. In the beginning, maybe they could. But as the company progresses and the business expands, it may become difficult to keep up with all the work that needs to be done.
But how do you know that it is time to hire an accounting firm? When should you seriously consider it? Here are some scenarios you might find yourself in. During these times, it is best to consider talking with a firm to get things done and get it done right.
· When you Need to Focus on the Business
Keeping the business books updated is easy to manage when you have nothing else to do. But when you need to take care of the delivery, the operations as well as the marketing of the business, taking care of the books can be stressful. Delegate the task to those who know it best. The accounting firm will be able to take care of all the responsibilities, giving you the opportunity to focus on the other things that need your expert attention.
· When you Want to Save on Costs
Hiring an accounting firm may seem like a considerable investment, but it might save you more in the long run. When you hire a person who will look into your business finances, their shortcomings might get in the way. With an accounting firm working to manage your business books, you are assured that they work as a team. With a team of experts working for your business, you are guaranteed that everything will be taken care of.
· When you Know Very Little, but you Want to Learn More
If accounting is not your expertise, then hiring an accounting firm will help you learn more about what your business needs to further its expansion. When you need to ask questions concerning the finances of your company, the members of the accounting firm will be there to answer them. Not only do you get instant answers, but you learn more from the experts in the long run. Isn’t that indeed beneficial?
Is it time to hire an accounting firm yet? Yes, yesterday was the best time. Only a team of professional accountants will be able to help you sort your concerns, keep the book updated and show you the many ways you can save for your business.
Every business owner keeps his balance sheet. This is a business document that allows them to see the assets and liabilities of the company and help keep everything on the right track. It is essential for this balance sheet actually to find balance at any given time. The list of assets and liabilities should come to a tally to ensure that the business finances are on track. A simple unbalance in the balance sheet should be a cause for alarm. Even when the balance is tipped a little, it could still mean that the problem may be worse than expected.
It could affect the way you make decisions for the company. It could also cause problems in the profitability of the company. So how do you keep the balance sheet balanced? Here are some tips from the accounting experts in Edmonton.
Tip 1: Keep your Data in Place and Updated
More often than not, misplaced data often results in an unbalance in the books. Remember to keep your data in place and keep it updated. Never let months pass without you updating the books. Also, when you check on the balance sheet, remember to be specific about the balance that you want. If you're going to check if there is balance in the books for this month, then include all the particular expenses and profit only for this month. If you add the list of expenditures of last month, then it could result in an unbalance. To avoid misplaced data due to human error, it is best to have a certified accountant to keep the balance sheet and its data accurate. They can help conduct an audit to look for data manipulation and other discrepancies that may cause an unbalanced sheet.
Tip 2: Check for Incorrect Data Entry
Human error in accounting can be very high, especially when the staff is not trained right. Business transactions that are entered wrongly could mean a huge difference between business assets and liabilities. Such mistakes include the input of incorrect numbers or inputting only the credit or the debit side of the transaction. Ignoring the error and keeping it unreported could make the problem even worse. To fix the issues or prevent it from happening, it is best to have an accountant train your staff on how to do data entry. Let them cross-check your financial records too to ensure that all the data are in place.
Tip 3: Go for Equity Calculations Often
Whether it is a change in the inventory system or the increase in unpaid balances that is making it difficult to reach a balance, it is always best to have a professional accountant help you do it. Remember that the balance sheet won’t be balanced unless it shows you the difference between the company’s assets and liabilities. Therefore, minor errors on such could lead to significant damages.
The secret to keeping the sheet balanced is to have a professional help you with it. Their guidance can save you from losing all the vital data that could mean the difference between your business success or failure.
Are you a business owner who recently purchased an accounting software? You must be feeling confident that even with little knowledge about taxes, you’ll be able to see things through. Is it possible to run your business without an accountant? It may be possible in the beginning, but as your business grows, it will require more. The expansion will require more work, that’s when you need someone who is dedicated to ensuring that your finances are on the right track.
Hiring an accountant brings in more value to the company. The guidance that you get from a professional is incomparable. How do you know that it is time to hire an accountant? Here are signs that you should do it now:
·Accounting tasks are distracting you from doing other tasks for the business. Taking care of the finances is part of your job as the manager of the business. But when it begins to become a distraction that you are no longer able to do the other things because you are tied up doing the accounting and keeping the books updated, then it is best to call a professional accountant in.
If you are having second thoughts about paying for the services of an accountant, it is best to ask yourself how much your time is worth. Simply calculate how much you are spending when you’re doing the accounting for your business and compare that to how much you’ll be paying the accountant. From there, you will see that it is best to hire an accountant instead.
·When you’re up for another expansion, it is best to have someone who can ensure that the books are covered.
Every business owner only wants to find success in their business venture. But with expansion comes rapid growth and higher demand for services. With that arises the need for so many other things like an increase in the number of staff members, more systems, inventory to name a few. All of these need a lot of paperwork too, so it is best to have someone who can take care of the details of the paperwork for you. With an accountant, you can keep the financials in line and concentrate on building that empire.
·When your sales are increasing, but the company seems not to be earning much profit.
Accountants are trained and skilled to give an objective look at your finances, allowing them to make suggestions about what you can do for your business. If you are already making more money, but your profit still seems low, it is best to have an accountant in. They can help you evaluate the current system you are following to help you see the financial situation of your business. If there are issues, the accountant can help you look into it and develop solutions to deal with the situation.
Some signs help you see how important it is to bring an accountant in at this point. However, it is always best to hire one even before the need arises. This way, you can avoid making financial mistakes that could bring your dream business down.
Have you wanted to take the risk to start-up a new business venture? No matter how good your business idea may be, it is a must that you work on determining the amount you need to put up that start-up business of yours. Financial planning for both short and long-term projects is the key to the success of any new entrepreneur. It is essential that you know the tips and tricks that you could follow to help you grow the money you have put into it.
How do you get around it? Here are a few tips to help you start-up your business and grow it:
Tip 1: Look into the Cash Flow of the Company
Most start-up businesses don’t grow because it has run out of money to fund it. Business owners must know the flow of cash in the business. Where does every single dollar come from and where do they go. If you fail to be on top of the cash flow of the business, you could be putting yourself in the middle of trouble. Not only could mean losing all that you risked for the business, but failing in your venture altogether. Remember that the goal is to establish a budget and to stick to it.
Tip 2: Consider Various Opportunities for Business Growth
A start-up business may mean running it from home. In the beginning, this may all work out for you. But you also have to be open to expansions. This may require a bit more work. Recognizing the different opportunities for growth and development should always be on top of your list. When you know that new investments are possible for you, go for it. Like the first one, learn more about it and in the process, grow your start-up business and create a steady cash flow for it.
Tip 3: Identify Fixed Expenses and Keep them to a Minimum
The key to successfully starting up your dream business is to keep expenses to a minimum. If you don’t need to rent out an office yet, then don’t. The limit on costs means you have more funds to improve what you offer regarding items and services. Keep operating and other overhead expenses to a minimum. You don’t need catered meals each day. Don’t forget that the primary goal is to generate revenues and keep it growing.
Whether you are starting your business today or tomorrow, it is essential to be on top of everything. Generate higher revenues and keep the expenses to a minimum. Before you know it, you have doubled your investment and has won yourself more money to invest and grow.
Some online business accounting tools make themselves available for business owners to work with. It may be tempting to settle for these as most of them come cheap if not for free. But working with such free accounting tools instead of hiring an accountant can mean higher costs in the long run. It’s a mistake everyone is making. Don’t be one of them.
Hiring an accountant to help you settle the finances of your business venture may cost you a couple more dollars, but they will make it worth your while. Only a qualified public accountant will be able to tip you off possible missteps that could cost your business a fortune. Apart from that, they could also teach you about tax-saving opportunities you can grab to enjoy further the money you are earning. None of those online accounting tools can send you red flags in financial concerns like a professional accountant would be able to.
However, it is essential that you understand what services a reputable accountant will be able to provide. To make sure you get your money’s worth, here are the top three questions to ask:
· How Often Should We Keep in Touch?
Communication is the key to building a good relationship between the client and the accountant. This may seem like a simple question to act, but it answers pretty much all the concerns that you may have about hiring a professional accountant. It is important to establish early how often you’ll communicate with them, either in person or by phone. Decide on this together. This will ensure that your concerns about the finances of your business are addressed.
· What Services can you Provide that can Help me?
The tax season is one of the reasons why any business owner would hire an accountant, to begin with. You will want someone who can answer your questions about tax credits and deductions that you should avail of. They can always make a list of the things that they can help you with, but you’ll only realize how beneficial it is to hire an accountant when you have questions about taxes that you don’t know where to get answers for.
· Can you Help me Grow my Business?
Only a qualified accountant can help businesses grow. With the right groundwork, any small start-up business can grow into an empire with the right accountant guiding them through it. The beginning is always the most difficult. To grow a business, one must start by creating a financial model of how things should be done. When its built with honesty and built on the traditions of accounting, soon business owners will see the actual results.
Failing to work with an accountant and gain financial advice from them could mean losses for your business. The whole point of hiring them is getting expert advice before you even need it. Thoughtfully consider, make reasoned judgments on your finances with an accountant. You can never go wrong.
Are you an owner of a start-up business? Planning for your dream business can be very exciting yet very challenging as well. People around you will tell you to do this and do that. The advice you get from family and friends can be overwhelming too. However, it is crucial for every start-up business owner to know the importance of hiring professionals to work with them in growing their business life. Have you considered hiring an accountant? Here are some of the many reasons why you shouldn’t put it off at a later time.
One of the many aspects of running a business that a start-up business owner must know is that no matter how small or significant your investment is, you will have to deal with professional service providers. From vendors to lawyers down to picking the accountant to trust with your books. Most entrepreneurs would merely hire one for the sake of hiring one, and they think that is enough. With little thought and effort on what should be done, start-up business owners often fail because they don’t see the value of having an accountant and how they could make his skills work to their advantage.
An accountant can, directly and indirectly, affect the decisions that you make for your business. The goal is not just to hire them to set things up. Establish a good working relationship with them. Make them your partner in business success. Take advantage of their knowledge and learn how to do the ropes. If you work closely with your accountant, they can be the one who can help you solve a financial problem that could put a bump in your business growth.
But what services can my accountant provide?
• They can help you decide on the form of business you should register too. The structure of ownership a significant impact on the taxes and only an accountant will be able to explain the difference.
• Accountants can put a system of recording the flow of money in the business to make year-end financial reports easy.
• They will help you keep track of your taxes and ensure that you pay the right amount at the right time. This will avoid paying for penalties and interest that could mean losses for the business.
• Accountants can advise you on how to separate personal from business expenses properly. Also, they can help you decide whether expenditure can be charged to your business account.
You will need an accountant for your business; there is no doubt about that. When you realize the true value that they add to your company, it is only then that you will know what a good investment it is to have them as part of your start-up business.
At the beginning of every financial year, business owners don’t seem to mind the amount of tax that they pay. While most would be looking for ways to spend not more than what they owe, there are others who work on increasing the possible tax refund that they will get. Tax refund helps you secure your future as well as that of your family for it means nothing less than savings. While paying taxes is part of your duty as a business owner, there are ways you can do to help reduce your tax liability. How do you do it?
· Tip 1: Be Charitable
Allot a part of the company’s income to donation. Various charitable institutions are exempted from tax collection. Donating to these institution allows you to have a substantial amount of on-refundable tax credit. Community groups, religious organizations, non-profit hospitals, and colleges are just a few of the institutions you can donate to. When you put money into any of these institutions, you can collect part of the amount, up to at least 75% of your income.
· Tip 2: List Down all your Work Expenses
If you are required to make payouts as part of your employment but are not refunded by your employer, you may be able to use it as part of a tax claim. Cell phone and laptop use for work are usually not reimbursed by the company; thus, making them eligible for tax deductions. All you need to do is make sure that you put on record all of these to be able to make a claim.
· Tip 3: Keep a Record of All your Medical Expenses
Your health plan does not cover several medical expenses. These expenses may be claimable as a non-refundable tax credit. Whether it is the payment, you made to the doctor, attendant care fees and even the ambulance service. All of these can be filed as part of your tax return. Hence, make sure to keep on record all your medical expenses as they could bring about huge savings on your part.
· Tip 4: Work from Home Services are also Included
If you are an owner of a start-up business operating from your home, you can also avail of tax deductions. Most of the expenses that you incur to be able to make income are almost always tax exempted. A portion of the rent, internet expenses, office supplies as well as part of the other maintenance costs are tax refundable.
Keeping a record of all these data and its supporting documents before the filing of tax returns should be a priority. Not only will it help you keep track of your earnings, but it could help you save a lot in the long run too. Don’t wait until the end of the financial year to do it.