Small business owners, especially during the start up stage, try to take care of every aspect of their business to save money. This is understandable when working hard to build up a client base to generate regular income. In some areas of a small business, this could backfire by costing the owner more money.
Time is Money
Another area many Entrepreneurs often fall into is not appreciating and valuing their time. Instead of wasting time on tasks that make you uncomfortable, or take longer than expected to complete, consider spending more time pursuing new business opportunities and delegating everything else. Although it may seem money is being saved by doing all the work themselves, in retrospect, it is costing the Entrepreneur money.
Do you ever time yourself for every task from start to completion? When you keep track of your time, it provides tangible proof to gauge the amount of revenue and expenses for each task.
The core of every business, small, medium, or large is a solid grasp on the business financials. If you do not have a solid understanding of your financial position, it could leave your small business vulnerable to making bad financial decisions. Instead of feeling frustrated trying to understand your financials, consider having a Chartered Professional Accountant (CPA) to be part of your team.
Here are 5 reasons
- Advice on tax planning and compliance.
Such as how to apply Goods and Services Tax (GST), Provincial Sales Tax (PST), identify tax-deductible expenses, payroll taxes, reduce taxes and claim taxes on expenses..
- Advice on making smart business decisions
A CPA has the knowledge and ability to analyze the financial side of a small business. They can provide the figures to make smart business decisions to apply for a loan, how to expand the business, or branch out to start a new business.
- Help improve small business owner financial literacy
A CPA can provide a small business owner with clarity how to read their financial statements. When you are equipped with the knowledge of how to read your numbers, it opens up a whole new world of opportunities and how you approach every financial decision. From deciding to sign a lease or rent a space to expand your office space, to comparing hiring new staff or sub-contracting instead. A strong understanding of your financials is the key to making the right decisions for your small business.
- As an advocate to resolve issues with CRA
Canada Revenue Agency (CRA) periodically contacts small businesses for a variety of reasons. A CPA has experience and understands the language of what is being requested to help you through the process. Another area is pointing out potential CRA red flags your small business should avoid.
- Build a financial model to fit with your small business
A financial model is a great resource towards building future goals. With a CPA as part of your small business team can help you with a range of advice from developing strategic plans to improving your cash flow.
A CPA is not a luxury permitted only to the well to do Entrepreneur; it is for any small business that wants to plan, grow, and succeed. The value of a CPA as part of your team will help you make smarter business decisions. You will learn from CPA expertise how to read your financial numbers in a more strategic and tactical way you never knew existed.