To say the past year and a half have been difficult and uncertain, both emotionally and financially, would be an understatement.
Lockdowns made it virtually impossible for entrepreneurs to follow through on their own business models, while small businesses found it difficult to attract new customers. Restaurants were especially hit hard after extended lockdowns across the world eliminated indoor dining.
Thousands of businesses have shut their doors for good, as people solemnly part with their lifelong dreams of becoming successful small business owners. At the same time, the ones who stood tall throughout the pandemic have accomplished unimaginable feats and changed the nature of their industry.
However, now that region by region businesses are opening their doors to eager shoppers, businesses may need some help from professional accountants. Here are five ways an accountant can benefit your small business.
As businesses have most likely experienced a loss in revenue this past year, obtaining professional help will benefit the owner greatly. This is when you would consult an accountant who can help balance the loss and or gain in revenue. For thousands of businesses in Toronto, Canada, who have experienced multiple lockdowns, including the most extended lockdown in the world, an accountant can be of great use.
When you hire an accountant in Toronto for small businesses, they will advise you on all the tax forms to fill out, including:
- T1 for sole proprietors
- T1 for general
- T2 for corporation income tax returns
Besides helping file appropriate tax forms, they can assist you with the GST/HST returns and prevent financial losses.
According to the U.S. Small Business Administration, the majority of small businesses, on average, cost anywhere from $2,000 to $5,000 to start. This is when you work alongside an accountant who will advise you where to allocate your finances and what takes priority. Once understand how much your spending, you will be able to determine appropriate measures to start saving. With an accountant by your side, your saving benefits can go towards the future of your business.
Refocus on Your Business
You want your entire focus to be on your business, but it can become challenging when all responsibilities lie on you. When you hand over the financial responsibility to a professional accountant, it allows you to refocus. You can create a game plan for marketing purposes, revamp the business if necessary, and focus on inventory.
Passing on your bookkeeping to your accountant can alleviate stress and streamline the business process. An accountant can cover monthly bookkeeping, identify any red flags, expense reports, and more. In addition, when you hand your bookkeeping to a reliable accountant, there’s a lesser likelihood of errors.
One study finds that businesses lose billions of dollars by buying the wrong software each year, and with a trusted accountant, that can be alleviated. Professional accountants are well-experienced and have the technical skills that can significantly benefit any small business. In addition, accountants can apply the latest technology in the market, making them essential to small business owners.
Whether you are starting a new business or remodeling your current one, having an accountant by your side has significant benefits.