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The survey conducted by the software giant Sage reveals some interesting facts about accounting services. Around 71% of businesses outsource their accounting services. A total of 55% decision makers agreed on the necessity of accounting service. Only 10% said that they don’t need the accounting services. The survey was conducted mainly in the SMB (small to medium businesses) sector.
Saves on Effort and Time
As an entrepreneur or a manager, your time is invaluable. You need to focus on your core tasks like- to manage your company’s growth, keep an eye on the cash flow and seek more opportunities. Instead of going through the monotonality of transactional paperwork, you would be better off pursuing your business goals and implementing strategies. The accounting firms would take care of the painstaking task and record each of your business transactions meticulously.
Act as Trusted Business Advisors
When it comes to integrity, accountants undoubtedly have a better reputation than any other business advisors. About 44% of business owners seek the advice of their accountants prior to considering any other advisor. Around 50% of business owners believe that accountants provide them the most valuable advice of all their personal and business acquaintances. To give you a fair comparison, only 2% of the entrepreneurs consider other professionals like bankers and solicitors to provide them with the most valuable business advice. 15% of business owners claim that they are more transparent and honest with their accountants even in comparison to their family and friends.
Maintains the Accuracy Levels
A professional accountant would be more competent and experienced to handle your records. They can detect and prevent fraudulent transactions. You don’t want to bring the ax on your own feet by incurring losses due to inaccuracies in your record keeping. The accounting firms may also have a separate team for audits. The professional approach would minimize inaccuracy, prevent manipulation and fraud. Your financial records would truly reflect your business success.
Let’s You Find Your Work-Life Balance
One may not guarantee success or failure in business. One thing however you can be sure of is that you have to slog like a mule. To maintain your work-life balance, you must learn how to delegate your tasks. By nature, entrepreneurs are poor managers and organizers. No wonder, there are a lot of entrepreneurs who have ADD (attention deficit disorder). These people though being creative and talented are disorganized and have poor management skills.
Entrepreneurs should outsource their accounting requirements similar to the way they delegate managerial tasks to their managers. The accountant firms would take care of the tedious tasks whereas the entrepreneurs would be able to maintain their work-life balance. Proper maintenance of your work-life balance will improve your personal relationships. The improvement in your personal relationship will act as a feedback loop. The positive vibes from your relationships will end up enhancing your morale and inspiring you to achieve even more.
May Help You in Business Networking
The accounting firm you have hired may introduce you to your potential vendors, investors, and clients. They due to their knowledge, experience, and insight may help you to find perfect business associates. Due to their vast network, they might also help you locate and recruit suitable employees.
The accounting firms can analyze the data and provide you insights, which may help you to transform your business. The insight may help you to improve your business in multiple ways. You may come to know about a neglected sector which could potentially increase your profits. Similarly, the analysis reports may shatter a perception about a business segment which in reality might not be as profitable as perceived initially. The analysis may provide you statistics to arm with during your meetings with vendors, prospects, clients, and investors. The data stored in your computers is of no use unless you let it work for you. If you want to build your business, you cannot ignore analysis. Proper usage of the insights provided by the accounting firms may empower to take your business to new heights.
May Help You with a Business Plan
Due to their experience with other entrepreneurs and businesses, they might be able to share stories which are relevant to you. Whether it is a success or failure saga, you can certainly learn from it. Intelligent people don’t just learn from their own mistakes, but they learn from others as well.
Moreover, you can pluck the ideas implemented by other entrepreneurs and use them in your business. If you are getting stuck with your strategies, then it would be a good idea to discuss it with your accountant. Expert professionals from accounting firms may clear the clutter in your plans and build a roadmap for success!
The accounting firms stay up to date with all the relevant tax laws, rules, and regulations. The tax rules and regulations change frequently. You cannot afford to invest time and effort to stay on top of every new regulation. The accounting firms keep your business compliant by ensuring proper actions as prescribed by the rules and regulations. It would be wise to let professional accounting firms tackle your tax issues. They would also suggest you, ways to save on your taxes.
With 21% of small business owners admitting that accounting tasks as one of their most significant challenges, you cannot afford to ignore it. Accounting firms are necessary for your business irrespective of whether you operate as a solopreneur, small business or enterprises. The services provided by accounting firms would remove obstacles and propel your business forward.
You may get in touch with ATS Accounting INC. for any of your accounting and bookkeeping requirements. We are one of the leading accounting firms in Edmonton.
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If you are a newbie in the city or just entering the workforce, you may be overwhelmed by the feeling of filing a tax return and whether it is necessary. When it’s that time of the year again when Albertans roll up their sleeves, dig out old receipts, and financial documents from the past year and fill out their tax income forms.
For those who end up with a rebate, the process could be rewarding. Whether you end up owing the government or the government owes you, tax time can be tricky for many.
Most income tax and benefit returns are due on or before 30 April 2018.
We can help you with your tax file and accounting hues. Let us explore the different facets of accounting and tax returns before filing your taxes in Alberta, Edmonton.
You must file a personal tax if:- You owe tax.
- You are self-employed and have pension plan premiums due. Also, you are required to file if you are paying employment insurance premiums on your self-employment earnings.
- You and your partner wish to split your pension income.
- You are participating in the Home Buyer’s Plan or Lifelong Learning Plan with repayments due.
- You disposed of the capital property. If you sold your home, you must file a tax return even if you don't wish to pay capital gains tax on the sale (principal residence exemption).
- Whether you are 9 or 90, age does not influence your requirement to file a personal tax.
- Students are not exempted from filing either. If your 21-year-old child is an entrepreneur who makes over $3,500 (after expenses) running a small business, they must submit a personal tax even if they're still in school.
While filing your taxes is a yearly tradition, the government makes few amendments to tweak its tax policy. Here are a few things the Alberta government has altered for 2016:
- Increased Alberta non-refundable tax credits to counterbalance inflation
- Lower-income families with children under 18 years of age qualify to receive the Alberta child benefit as of July 2016.
- Individual income tax rates have changed for taxable income over $125,000, $150,000, $200,000, and $300,000.
- The Alberta overseas employment tax credit has been obliterated.
- The rate used to calculate dividend tax credit for non-eligible dividends has reformed.
How to File Your Taxes?
You can fill your tax form online, on paper, or by phone.
Stages of Filing a Personal Tax and Benefit Return
Stage 1- Collect all your information and relevant documents that display your income, and that support any deductions and accounting credits you plan to claim. To fill out your return, you need all your tax information slips that show your income. You should have all your slips and receipts by the end of February. Gather all the receipts or records you will need to support any deductions, credits, amounts, or expenses you will be claiming.
Stage 2- Select the software you wish to use to fill out your details or get the general income tax and benefit package.. For ex- NETFILE is a certified tax preparation software that offers you convenient and secure way to do your taxes online.
Stage 3- Make sure all your details are up to date. Changes to your personal information such as your marital status, the number of children you have, your banking information, and your address directly affect your benefits and accounting payments. If there have been any alterations in any of the aforementioned, let the Canada Revenue Agency (CRA) know as soon as possible to ensure you get the entitled paybacks and returns.
Stage 4- Report the income you have received in the year from all sources, both inside and outside Canada. Find instructions on where to report in Edmonton an amount on the back of your information records.
Stage 5- Calculate the deductions, tax credits, and benefits you can claim. This information is required so that you can claim on your return to reduce the amount of tax you have to pay. This information can also be found on your tax return or a related tax form in Edmonton. If the information is too overwhelming at this step, it is always wise to seek professional help and let our team of experts resolve your queries.
Stage 6- Send your file to the Canada Revenue Agency. With several ways to send your tax file to the CRA, you can file it online using NETFILE-certified software or through an EFILE service provider, such as a tax preparer. ATS accounting helps in preparing and e-filing your individual, corporate, and estate tax returns at the local, state, and national levels.
Stage 7- If you filed your taxes late, your records must be secured for six years from the date the tax was filed. If there are any claimed expenses, deductions or accounting credits, make sure you store all your receipts and related documents in case the CRA asks to see them.
How can I avail maximum tax returns? When do I get the refund?
You can avail maximum reimbursements in the following ways:
- Keep your transit passes
- Use your tuition credits
- Claim your student loan interest
- Claim medical expenses
- Use the dividend tax credit
- Claim utilities such as cell phone and internet expenses
- Claim your work expenses such as conveyance, uniform, costs incurred on purchasing work related items
If you file your return online and choose direct deposit, you get your refund in as little as eight business days. If you send a paper return, it generally takes eight weeks to issue your notice of assessment and any refund.
Do You Need Help with Your Taxes?
With so many steps and procedures involved, filing taxes can be quite daunting. It is one activity; a person must experience to get their hands-on with managing their finances and accounting.
Managing all your tax deadlines, including payroll, corporate, sales tax, and more, can be a big job that diverts you from other things you have to do to run your business. We take pride in staying on top of these deadlines for our clients, so you don’t have to stress about them. We prepare and file the tax returns that are required for your business. We’ll look hard for every deduction possible, discuss with you your options, and perform your tax compliance work accurately and on time.
Are you still indecisive? We have made it risk-free for you. Now you can book a consultation for counselling, controller, taxes, and accounting related queries.