Bookkeeping is an important part of any business, but it can easily be set aside for more pressing priorities. The core operations of a small business, such as production, sales and marketing, and customer relationship management, are always carried out by employees. To keep your business running, you need to do these things.
There are a lot of things to think about when starting a business; Pricing and quoting, business name, incorporation vs. sole proprietorship, financing, staffing, marketing, and the list goes on. A person quits their job, starts a business, and hopes for great rewards because they want to be their own boss. Many business owners ignored the requirements for bookkeeping, dealing with the CRA, payroll laws, business law, and numerous other potential problem areas.
There are numerous software’s available for small businesses that state that you can handle your own books, payroll, and financial reporting. Although software today is very good but certain limitations applies on software’s like what does it know about you and your business? Does the software know which of your purchases and sales are subject to taxation? Which rates of tax apply? Are some things tax-free? Keep in mind that these software companies’ main business is to sell software because they are in the software business, not bookkeeping one!
You cannot just rely on these software’s because number of issues still need to be addressed like
- How about payroll?
- What about paying yourself?
Its difficult to manage all these things at the same time, so the best option is to take services of a professional bookkeeper. In this article we will concentrate on the CRA and bookkeeping requirements.
What does a bookkeeper do?
Your small business’s financial transactions are recorded by a bookkeeper. They create a system for keeping track of your receipts, purchases, payments, and sales. They help you make sense of your numbers and record the data in accounting software. You will have valuable information, such as how your business is doing, whether you are making a profit, which marketing campaigns are successful, and more, if you keep accurate bookkeeping.
The following are some significant advantages of employing a professional bookkeeper for your small business:
- Save you time
- Unpaid invoices won’t be missed
- Determine any issues with cash flow
- Concentrate on expanding your business.
- The tax season will be easier
- Getting ready for an audit
- Securing loans from creditors and banks
- You won’t miss any deductions or credits.
- Maximize your tax benefits
- Monitor your finances
- Concentrating on essential tasks
- Avoid tax penalties
A partnership between your bookkeeper and a tax professional to provide you with the best financial strategic planning for your business is the best bookkeeping solution. In order to continue operating, freelancers and small businesses require a solid financial plan that provides stability. Having a bookkeeper on staff will make a big difference. It’s not wrong to pay a bookkeeper; you’ll be glad by doing so as your business expands and you can focus on that expansion and customer service. Doing bookkeeping by your own is a waste of time.
In addition to tax preparation, Finnection provides small businesses with a tailored on-site bookkeeping solution. In the long run, this integrated strategy saves you the most tax.
For more details and bookkeeping services, contact finnection via email at info@finnection.ca or call us at (647) 795-5462
Disclaimer: Above information is subject to change and represent the views of the author. It is shared for educational purposes only. Readers are advised to use their own judgement and seek specific professional advice before making any decision. Finnection Inc. is not liable for any actions taken by reader based on the information shared in this article. You may consult with us before using this information for any purpose.