When you operate a business, financial planning is a process that needs extra attention. To provide this attention, you should consider employing an accounting firm to help you. An accounting firm performs several financial and bookkeeping tasks to help your business function smoothly. When you have an expert chartered professional accountant to look into your finances, the chances of discrepancies is reduced. Apart from reduced mistakes, here are some other aspects in which an accounting firm helps with financial planning.
Proper Tax Payment
Conducting your business operations within the tax laws and guidelines set by the government is crucial. A mistake often made by businesses is to not account for the tax amount to be paid to the Canada Revenue Agency (CRA). This happens when you are not aware of the percentage of tax levied on your services or products, or when your business does not have sufficient funds to pay the tax amount when its due. An accounting firm ensures that you are fully aware of the tax amount to be paid and helps you create a financial reserve for tax payment.
Financial Status and Health
As a business owner, it is vital that you keep an eye on the financial health of your business. This includes:
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Income and Expenses
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Profit and loss
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Assets and liabilities
A chartered professional accountant will always be aware of your business’s financial health as they will regularly assess your financial statements. An accountant is well aware that knowing your business’s current financial health is vital if you wish to expand your business in the future.
Smooth Auditing Process
Audits are a time that any businessman dreads. The idea of an auditor going through your books of accounts and finding mistakes is scary. But what’s scarier is your inability to explain the reason for a mistake to the auditor. When you hire an accounting firm, the chartered professional accountant makes sure that your records have no mistakes and that the books are ready for an audit. Also, then you don’t end up with corporate accounting scandals!
Business Recommendations
The aim of growing your business can only be met if proper guidance is taken from experienced professionals. When an accounting firm is hired, it checks the complete financial state of the company and accordingly provides financial advice to overcome the shortcomings. Such accounting firms can also give you good advice about future investments based on your current financial state.
These are just some of the ways a chartered professional accountant can help you. If you are on the lookout for such services and more, reach out to the financial planning and accounting specialists in Edmonton.
