Many small businesses have one-person or small teams to handle their daily operations. This arrangement can work to a certain extent. However, as the business grows, owners might find themselves getting spread thin.
Tax laws and requirements can be challenging, especially as legislators introduce new changes each year. Even the stress of a growing business might require owners to hire outside help to focus on priority tasks.
Accounting is one business aspect that entrepreneurs could outsource to an external firm or practitioner. We’ve compiled a quick guide to choosing the right accounting firm for your Toronto business.
When To Hire an Accountant
A business accountant can offer helpful services at any stage of the business’s lifetime. However, they can be pretty expensive to hire, so many firms put off hiring them until necessary.
Below are some great instances to bring a business accountant or accounting firm on board.
- Writing a business plan
- Seeking advice for your company’s legal structure
- Delegating financial affairs (e.g., bookkeeping, payroll, financial reporting, etc.)
- Dealing with Toronto government requirements
- Applying for business loans
- Handling tax audits
- Buying or expanding a business
- Selling your business
Hiring an Accounting Firm: Factors To Consider
Finding and settling with an accounting firm can be tricky since you often have several options. Still, it’s vital to assess each one carefully to ensure they fit your particular needs.
Below are a few factors to consider to help you choose an accounting firm for your business.
Fees
One of the biggest reasons businesses put off hiring an accountant is the cost. Talk to the accounting firms in your area and discuss their fees. Some companies charge per hour, while others offer service packages.
It’s important to discuss this factor in length to ensure you have the resources to work with the firm.
Qualifications
The qualifications you need to assess will depend on the kinds of services you require. For example, bookkeepers can help you track and record business transactions. However, not all bookkeepers are chartered professional accountants (CPAs) and are not qualified to provide professional financial advice.
If you need in-depth accounting services, you should carefully assess the education, qualifications, and certifications of the accountant and firm you plan to hire.
Expertise
Accountants and accounting firms usually specialize in certain businesses or fields. Working with a firm with experience in your industry is essential to make the most out of your working relationship.
Even though accountants have similar qualifications and educational backgrounds, experience in your industry can be particularly beneficial. For example, a corporate accountant might not fit rural or agricultural clients.
Audit support
No matter how careful you are when filing business tax returns, there still lies the risk of discrepancies or inaccuracies. These mistakes and other factors could trigger a Canada Revenue Agency (CRA) tax audit.
Facing a tax audit can be stressful, and it’s vital that your accountant stays to help you through the process.
Availability
Some clients only need to meet with their accounting firm during tax season. Others might require financial advice regularly.
Know your needs and choose a firm that can cater to your schedule. Can you consult with your firm online or over the phone? Do you need to schedule an in-person appointment?
Trust and personal connection
Working with an accounting firm requires you to share confidential information concerning your business’ finances. For this reason, you need to have a certain degree of trust in your chosen firm.
Ask them about their privacy and security protocols. If you don’t feel comfortable, you can always look elsewhere.
An accounting firm can be an excellent asset to help your business manage its financial affairs. You can consult the Faris CPA firm in Toronto for your accounting needs. Their team comprises CPAs experienced in business and personal tax matters particular to the city.
Accounting services can be costly. Careful consideration is essential to find the right firm that fits your resources and addresses your company’s requirements.
