Reasons Why Your Business Needs To Hire a CPA in Edmonton
Running a business involves various decisions and responsibilities, including finances and taxes. As a business owner, it can be challenging to keep up with the complicated rules and regulations surrounding financial and tax processes. To manage these important aspects of your business, you may want to consider hiring a professional, such as a chartered professional accountant (CPA). Let us explore why your business needs to hire a CPA.
Why should you hire a CPA?
Reason 1: CPA’s are accounting experts
CPA’s are highly trained professionals who have expert knowledge in accounting and tax. They undergo rigorous training and have practical experience, which makes them the perfect advisor for any business. By hiring a CPA, you can rest assured that you are hiring an expert in this field.
Reason 2: CPA’s can help you save money on taxes
A certified public accountant can assist you in identifying tax deductions and credits that you may have overlooked. They can also help you develop a tax strategy that is aligned with your business goals. With their help, you can maximize your tax savings and keep more of your hard-earned money.
Reason 3: CPA’s can assist with tax planning
A CPA can help you with tax planning to ensure that your company’s tax situation is optimized, minimizing your tax liability, and ensuring that all tax obligations are being met. They also provide guidance on important financial decisions that may have tax implications, such as investments and acquisitions.
What services can be provided when you hire a CPA?
Service 1: Preparation and filing of tax returns
A CPA can help you prepare and file your tax returns, ensuring thorough compliance with the tax laws of your jurisdiction. They also help you coordinate with the Internal Revenue Service (IRS) on your behalf, minimizing potential disputes over your tax documents.
Service 2: Bookkeeping and financial statement analysis
Before a standard numbering system was developed, ancient accountants used clay tokens to keep track of animals and grain to do their analysis. Now, CPAs provide bookkeeping services and financial statement analysis, which is essential to how you operate your business, make decisions and track performance. These services include the preparation of financial statements, general ledger entry, and complex business transactions.
Service 3: Audits and reviews
CPAs can also conduct audits and reviews. Audits involve a comprehensive analysis of your financial data, ensuring that your business is working according to the laws and regulations that govern you. Reviews are less extensive, but they provide a high level of assurance for potential business partners and lenders.
How do you choose the right CPA for your business?
Tip 1: Look for a CPA with experience in your industry
It is best to hire a CPA with experience in your industry, as this will make them more familiar with the unique factors affecting your business. They can also provide more relevant insights and guidance that can help you achieve your business goals.
Tip 2: Consider the cost of hiring a CPA
The cost of hiring a CPA is an essential factor to consider. You should weigh the cost of hiring a CPA against the business benefits they provide. Some CPAs charge a flat fee, while others charge an hourly rate. Ensure you choose a CPA whose rates you can afford.
Tip 3: Meet with potential CPA’s to discuss your business needs
You need to meet with potential CPAs before choosing to work with them. These interviews are an opportunity to ask questions and get to know the CPA, ensuring they have the right experience and understanding of your business. It’s crucial to feel comfortable working with your CPA, so don’t hesitate to ask for recommendations and credentials.
What are the benefits of hiring a CPA for small business owners?
Benefit 1: CPA’s can help you stay compliant with tax laws
A significant advantage when you hire a CPA is that they keep you up to date with tax laws. They ensure that your business tax returns are prepared and filed accurately and on time, avoiding legal and financial penalties that arise due to non-compliance.
Benefit 2: CPA’s can provide valuable financial advice
A CPA can also provide valuable advice on financial decisions that will advance your business goals. They can help you manage your financial data, perform cost analysis, and develop financial strategies that will benefit your company in the long run.
Benefit 3: CPA’s can save you time and hassle during tax season
Finally, when you hire a CPA it can ease the stress and burden of tax season with their expertise. They perform time-consuming tasks such as gathering and organising tax documents, preparing and filing your tax returns, and responding to any issues that arise during the process, freeing up time that you can use to focus on running your business.
These are some of the reasons it is important to have a professional accountant on your team. It is important to be proactive as a business owner so you do not find yourself in hot water with CRA. At Richardson Miller LLP, we have decades of experience working with business owners and corresponding with CRA.
If you have questions about what your next steps are, contact us today!
Angela Richardson is a Chartered Professional Accountant (CPA, CGA) with more than 17 years experience working in public practice with small to medium sized businesses. While financial statements and tax returns are part of the occupation, consulting and assisting clients to achieve their entrepreneurial dreams is her true passion.