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Business plans serve multiple functions such as setting a benchmark for growth, attracting investors and acquiring funding from investors. Creating the ideal business plan for investors can help you with fundraising more than any other endeavors. It is essential to learn the art of creating a business plan to attract investors. Often, before you even give your passionate pitch, investors will first want to take a look at your business plan. Here are some pointers on how to create the most effective business plan for investors.
What can a business plan showcase?A business plan can help highlight key factors which are essential in your quest to acquire funding from investors. A detailed business plan helps the investor visualize the progress of the company and cements the idea that a lot of thought has been gone into the business venture. It also allows investors to hold the entrepreneur accountable for growth by taking into account a set of financial benchmarks to compare with.
How to create a business plan for investors?Now that you know what a business plan can do to help you acquire funding from investors, here’s a step-by-step guide to crafting a business plan to attract investors.
Your entire business plan should read like a marketing brochure, loaded with enthusiasm and positivity. Your investors should feel compelled to be excited for the business venture after reading your business plan. Include your vision, mission and a set of goals that you have set for the company.
Investors will back only those business ventures that have high growth potential. They are looking to double their investment in short time spans of 4-5 years. Knowing your market is imperative to assess the growth potential of your business venture.
The worst mistake that you can make while drafting a business plan is assuming that investors understand the technical jargon associated with your business product. Explain your business idea or product in the simplest terms possible, so that a reader from any background can easily understand what it is.
If your business has to succeed, your product needs to sell. Investors need to see if your product will gain traction with consumers. You need to clearly demonstrate the specific product need in the market that your product will fulfill.
Investors appreciate entrepreneurs who understand risk management and account for them in the business plan for investors. You need to have a section in your business plan which states major risks associated with your business and your plan of action for tackling them. This shows the investor that you are prepared to handle any operating risks that may arise and that their money is safe with you. Such a business plan will help you acquire funding from investors easily.
These are the steps involved in drafting a business plan to attract investors. Follow it religiously to create an effective business plan for investors and your business plan will serve you well. Speak to an adept accounting service in Canada to help you with the financial aspects of planning your business.
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Every residential corporation in Canada has to file a corporation income tax return irrespective if you earned any profit or not. This can be a tedious matter, especially for small corporates. Corporates may need the help of an accounting firm who can assist them to plan their tax returns. Thus, enabling them to focus more on the daily operations rather than taking time in filing tax returns. Most of the times, the firms do not have a corporate tax planning structure. If you have a corporate tax planning policy, then you can avail tax benefits in a better way. Some of the tax benefits for corporations are as follows.
Pension Plans for Individuals
Individual Pension Plan also known as IPP, are defined benefit pension plan which is managed usually by an investment advisory organization or an insurance company. If you are a business owner, you can make use of IPP to get tax benefits and also earn a pension. Payments made by your corporation to an IPP are tax deductible. The payments are invested in stock markets and bonds for a long period of time. Later on, as these investments grow, you receive a fixed payment once you retire.
Lease of Company Vehicle
One of the tax benefits for corporations is to lease the company vehicle. Even if you use the car for personal use, only two-third of the lease payments made by your corporation is taxable. However, make sure that the company name is provided in the lease contract to avail the benefit. The tax law allows you to write off the lease expense as a business expense.
Medical expense reimbursement for employees is provided by most of the corporates. Therefore, any kind of medical expense for drugs prescribed, treatment, fees to physician and other medical expenses are tax deductible. The Canadian Income Tax Act allows corporations to claim a tax deduction for Health Insurance Premiums paid for its employees. You must, therefore, ensure your corporation has a corporate tax planning structure and accordingly maintain the records for such expenses.
Plan for Income as Dividends
If your business generates net income, then you would withdraw all or part of it as your income. You can decide to do that in the form of salary or dividends. It is advised to take it in the form of a dividend. The reason being, salary is a tax deductible expense for the corporates, whereas dividends are not. Anyways, you will have to pay less tax on dividends.
Corporate tax planning can be prepared well if you take the assistance of accounting or financial firm. To know more about tax benefits for corporation seek the help of Edmonton’s leading accounting and book-keeping firm.
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Whenever you decide to incorporate your business, you will have to choose between federal and provincial incorporation. You should always ask yourself a question when you are going to start a business- "Should I incorporate?". Well, that totally depends on the situation and your business requirement .
Business incorporation is not a must for all business, so you need to know when to incorporate your business.
Incorporating your business also has a few benefits. Most of them are related to tax. So we will take a look at some of the tax benefits of incorporating.
Incorporating your business can help you to determine when you receive the income. That is a real tax advantage. The benefit of incorporating your business is that you can get your income at a time when you have to pay less tax. This is one of the tax benefits of incorporating.
When you incorporate your business, you get the potential for tax deferral. This helps you to understand the tax savings just in case you belong to the lower slab in the tax rates. Having a tax deferral is another on the list of tax benefits of incorporating.
If you are looking for some other tax benefits of incorporating, then you should add income splitting to it. Shareholders are paid dividends by the corporations. We all know that the shareholders have no involvement in the activities of business. If you make your family members the shareholders then what you do is you redistribute the income within your own family members.
Small Business Tax Deduction
If you want your business to qualify for Small business tax deduction (SBD). The SBD is calculated at a rate of 17% on the first $500,000 of taxable income. All this can reduce a lot of your net business tax and that is surely the best of the tax benefits of incorporating
The above points are some guidelines which can help you decide on when to incorporate your business ATS Accounting can be of great help when you want to know the tax benefits of incorporating.
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When you have your own business, you have the urge to do the things on your own. However, it is critical that you don’t. You need experts to assist you in a wide arrays of jobs.You will have to appoint professional who is good at accounting for your business. At this point, you might ask yourself - Do I need an accountant?
The financial transactions are time consuming when the business increases. Managing finances is a constant process which includes the recording of figures. If you appoint an accountant, he will be an expert at managing your finances and that indicates that you have a lot of free time. So if you think that managing the finances have become time consuming for you, that indicates that you need and expert for accounting for your business. With this free time, you can focus on work that is important to grow your business.
It will take time and effort to learn and understand the facets of accounting. Rather than learn a new skill which only account for a minor part of your business, you can learn more important aspects such as marketing or operations.
You have to be alert and on top of your accounts. Along with that, understanding the accounts and the related regulations are a tricky. The changes in the tax regulations occur from time to time and only a professional accountant can help you decipher the meanings of the legislations which are as we all know, important for your business. The tricky regulations makes you look out for an expert in accounting for your business.
The best time in the year when you are in a desperate need for an accountant is during the tax season. Having an accountant in these times is a greater incentive. It is the time when you are the whole and sole responsible to send the tax forms. An expert will make things easy for you when you are the sole person doing the accounting for your business.
Business are run for profit and the only way to know if your business has a profit is to maintain the books. Your books need to regularly updated and well maintained and if you fail to do so, you won’t be aware of the financial health of your business and neither will you be able to file your taxes. An accountant would be able to help you.
ATS Accounting can be of great help when you ask yourself - Do I need an accountant?