Choosing a Small Business Accountant v/s DIY: A Help-book for Canadian Business Owners

We are fast closing into the second month of the New Year– and the tax season is in full swing. That implies that hundreds of small business owners and self-employed Canadians struggle to wrap their heads around filing their taxes. If you too happen to be in the same boat, you've got two choices: 

1. Do it yourself— either through a spreadsheet or using a small business accounting software suite; or 
2. Hire a Small Business Bookkeeper 

Each of them has pros and cons. Have a good look at both of them before taking a call:

Following DIY approach. 

The key benefit of doing your taxes yourself is saved expense: you get to save money on accountants; payments in the immediate term. 

The most fundamental approach is to use a simple spreadsheet to track incoming cash flow and expenses. But almost every business with any success quickly exits this strategy.   If you're not yet willing to hire a business accountant in Toronto to help, investing in a high- quality small business software package such as Xero and QuickBooks would be a wise move to make.

Drawbacks of a DIY approach

Lost time:  Your time as a company owner is critical. Every moment you spend on corporate taxation, rather than on business development and improving client experience, is going to cost you dear. 

Mistakes:  Accounting is a specialized occupation. Small business bookkeepers carry years of training and expertise behind them, which may help you avoid mistakes that Canadian business owners usually make. 

Shoddy organization: If you have used the shoe box methodology; for stockpiling business invoices and other documentation, you are at an elevated risk of displaced or indecipherable records. At the very best, poor organization is a waste of effort and time. 

Hiring a Business Accountant in Toronto

If you consider hiring an accountancy firm to help you with tax filing and adherence, expect to pay a specific service charge. But these professionals routinely validate their payments many times over.  First, they can recommend how to plan and keep your records inline during the year. They can also demonstrate how to use cloud technology to help you retain and manage files online, enabling filing on the go and in a snap.

Small business bookkeepers can also mentor you on best practices in financial planning and management, such as evading the mixing of funds. They also help keep you abreast wit upcoming deadlines, filing requisites, and HST/GST adherence requirements.

Most significant of all, expert bookkeeping and accounting service providers help you save time. They can handle your books accurately and in a timely fashion so that you are free to take care of what is most important— your business and clients.