A business is successful when it grows profitably, and accounting can tremendously impact the business. Moreover, accounting services are important to run small and large organizations efficiently and smoothly in Canada. They help you to prepare a tax-efficient business structure and even optimize costs.
You may think accounting is not a direct contributor to revenue; well, it’s not true, as accounting is engaged every time when you raise funds for business, file your taxes, transfer assets, or face scrutiny from the Canada Revenue Agency (CRA).
Different types of accounting services
Accounting has experienced tremendous evolution in past years. Canadian accounting services are essential to run any business smoothly and efficiently. Different types of accounting services include;
Accounting starts with bookkeeping; it is the simplest and most well-known accounting service. It is a healthy practice to maintain any business’ financial records. Bookkeeping is necessary for any business today to keep track of transactions. Many business owners opt to do it themselves, but eventually, hiring a freelancer, or full-time bookkeeper is good to keep the services as transactions grow.
A dedicated bookkeeper compiles all your financial records and inputs them into your accounting software accurately. He also reconciles your books with your bank and credit card transactions, bill payments, and receivables; all this ensures that every transaction is recorded correctly and completely.
However, if we talk about the purpose behind bookkeeping, then bookkeeping helps to keep previous data accurately and well—maintained. This raw data can be further used to calculate revenue and spending, file and pay taxes, and prepare an efficient invoicing and collection system as your business grows.
Financial analysis and consulting
As your business grows, the data recorded in bookkeeping is not sufficient. This data is further used by providing it to the hands of accountants and later financial analysts. The accountant translates the record kept in bookkeeping into a financial statement. However, these financial statements are then handover to financial analysts, who translate this into meaningful conclusions for detailed discussion.
This financial analysis can further be used to gauge business performance and can get an accurate picture of the performance gaps and targets with other competitive industries. This information also helps to make some important decisions, such as budgeting and project investment.
Tax benefits and rules are different for different states and companies. Tax management starts from registering your money to withdrawing it to how you dissolve it or transfer it. As the business grows, complexities also grow; that is why it is good to hire an expert to manage tax services.
The most basic function of tax management is to review financial statements and fill the taxes accordingly. Certified Public Accountant (CPA) will help you manage business structure, asset purchase, income and expense accounting, depreciation methods, estate planning, and even raising funding tax-efficiently. They will also update you about the government’s tax benefits.
Financial controlling services
Financial controlling comes after the above three services. A financial controller is responsible for leadership and oversight of a company’s accounting & finance matters. Financial controllers also review all the activities of the accounting department and inform the owners about any errors in the process.
However, if any business does not have a dedicated financial controller, then the business may face internal fraud, which can badly affect the business. Well, this is a reason that every company should have a trusted controller in charge of the accounting & finance matters and to run the department smoothly.
What are the benefits of accounting services?
Accounting services benefit nearly every business. Well, some of the benefits of accounting services for small businesses are following;
Better financial decisions
Accountants help companies to have a clear picture of financial status that helps to improve decision-making.
When done properly, accounting services can improve your business’s financial health. Having a clear picture of your company’s finances helps make informed decisions when growing your business.
It also helps to determine the feasibility of any business plan, such as expansion and hiring. It prevents any counterproductive decisions that might threaten or delay your business growth by months or even years.
Ensures all the payments are done on time
Well, accounting services keep your financial record smooth and accurate, so there are very few to no chances of any irregularities in the payroll. Good accounting services also ensure to pay all the payments to the company’s employees are on time. However, when the employees get their salaries on time, they feel happy to be a part of that company and do their work passionately, which is also a good point in the company’s growth.
Easy to access financial information
Mostly, accounting services are online, which means they are easily accessible anytime and anywhere, but you must have a constant internet connection. Keeping an eye on financial information all the time will keep you updated about any change in the finance department.
Keeps your company away from any risk
No doubt, there are many financial risks that can put a negative impact on your business. However, in some situations, the risk may be ending up with a huge debt or even going to jail!!
However, if you have supporting accounting services, your finances will be in a sequence, so you will be away from any thefts, arrears in payments, irregularities, or from many other things that can cause harm to your company’s reputation or stability.
Well, it is possible to build an in-house accounting department, but the costs and administrative hassle associated with it can be challenging. However, an affordable alternative of hiring a high-quality outsourcing and/or staff augmentation partner can help you a lot. Today, it is easy to find competent outsourcing and staff augmentation firms that promise to provide multiple accounting services under one roof at a fraction of the comparative cost. By opting for outsourcing and/or staff augmentation, business owners gain access to accounting & finance professionals and services that best suit their tailored needs.
Now, if you’re looking to make your business grow while keeping it simple and secure, we recommend you contact our team. Professional consultants at WTC Chartered Professional Accountants can assess your situation and provide the right solution for you.