A recent report from Grant Thornton, illustrated some of the most pressing challenges facing Canadian business owners in 2018 and beyond. One key issue that was highlighted multiple times in the study was the increasing level of financial risk taken on by SMEs across the country. Between constant federal tax updates and an increasingly unpredictable economic landscape, entrepreneurs are being forced to keep a close eye on their income, expenses, and cash flows in a bid to protect their businesses from failing. As a result, a growing number of these individuals are outsourcing their financial management to professional accounting firms in Mississauga and other parts of Canada.
The average business can spend anywhere from 2 to 5% of its annual revenue on hiring, training, and deploying an in-house accounting team. After the department is set up, management must continue to spend significant sums on employee salaries, benefits (including sick leaves and vacations), new hardware, and accounting software.
By comparison, a firm who provides accounting services will only charge you for the amount of work they perform. With third-party accounting services in Mississauga you don’t have to worry about spending on recruitment or budgeting for monthly wages, you can pay as you go based on your current requirements.
Reputable accounting firms in Mississauga bring a diverse array of expertise to the table. Their service teams generally consists of several accounting professionals with years of specialized experience in areas such as bookkeeping, taxation and payroll.
With this kind of talent overseeing the preparation of your financial reports, you can be assured that the financial reports will document all the accounting information provided to us accurately and your bookkeeping and payroll function will be done on a timeliness basis. A good CPA can also analyze your current tax situation and recommend strategies that may minimize your tax burden and/or help you understand the tax implications of specific business decisions.
Any business that hopes to continue operating as a going concern, must maintain a positive cash flow over the long-term. This means that the amount you collect from invoices must exceed your monthly liabilities.
If you fail to maintain a positive cash flow, you may exhaust your cash reserves and be able to continue operations of your business if you are unable to arrange alternative sources of capital.
A CPA may be able to offer recommendations of how to improve profit margins, reduce expenses and expand your customer base to enhance your corporate profitability.
Accounting firms in Mississauga can make recommendations to reinvest your profits back into your business in order to maximize your success. If you need to arrange financing for a planned business expansion, the accounting firm can help you secure new business loans
Statistics show that around 1 in 5 businesses fall victim to employee fraud. When you do not have internal controls and leave your cash management to one individual, your risk of potential misappropriation of assets increases when there are no checks and balances to ensure that one employee does not have control of your bank account for writing and depositing cheques. Third-party accountants may recommend changes to your internal controls that may recognize irregularities in your cash management. Entrepreneurs are excellent business people who often are looking to expand their business and do not always spend the time in providing accurate and timely financial reporting and ensure that the assets that they own are safeguarded and reinvested in the business.