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Accounting for small business

Accounting and Bookkeeping for Your Small Business

Keeping track of your finances with proper accounting and bookkeeping is critical for successful small businesses.

Proper bookkeeping can help you keep track of expenses and cash flow, and measure your bottom line.
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Not all owners have the skill, expertise or time to manage all these financial details on their own, however. Hiring a financial professional – be it as an employee or a freelance consultant – eases this burden for many owners. And while you may worry about the expense of such services, a professional can actually save you money by showing you how to better manage your money, save on taxes and more.

There are different types of professional you can hire:

  • A bookkeeper, who may or may not be certified, can offer basic accounting and recording services.
  • A professional accountant (CA, CGA, CMA) will have more training and expertise to analyze data, handle your taxes and more.
  • A financial officer, such as a CFO or controller hired as an employee, can provide the best of accounting services, plus become an integral part of your management team.

If you’re starting your business out on a small scale, you can at least rely on popular software like Quickbooks to help you manage your finances.

Don’t Forget about Taxes and Regulations

The Canadian economy is driven by the small business sector. Even though many small businesses have just one owner and a handful of employees, there are many taxes and regulation the business must still contend with.

There are your basic tax requirements such as GST and/or HST (or provincial sales tax) that must be complied with.

Then there are numerous permits, licences and regulations to contend with. See Canada Business Network’s website for more information.

There are also many regulations and rules regarding employees, such as minimum wage, maximum work shifts, vacation pay and more.

If you’re new to the country, it is worth the investment to have a qualified tax professional and/or lawyer in your corner to help you manage your way through all the rules and requirements.