Why does a small business needs accounting?
Accounting is a very crucial thing for every business, since accurate accounting is required at various stages of a successful, growing business. Accounting services needs be comprehensive, handling much more than simply a payroll and tax returns. So, you should give a thought now about hiring a qualified professional accounting service for your small business. Be wary of so called “accountants”.
There are various reasons for using an accounting service at multiple stages of the growth of your business. From the onset of a business, i.e. when one is formation a plan for the company, and later, at every significant step, one should check with a qualified account. For instance, a CPA should, professionally assist in your loan application, your registering the corporation, and your initial HST filing, as well as initial tax audits. You intend to be successful! In our opinion, you will definitely require a CPA’s services from time to time, whether MCA or another CPA. Also, we will carefully go over your fee concerns at your initial meeting. At MCA, we are always there, at your service, and we will help you all the time regarding your financial needs. We will help you as you make your small business into a big one. We can relieve you of your time-consuming financial tasks and do so in “no time”, and we plan to make you happy with our “fair fee” outlook. The extra time that you will have to yourselft, you can use it for other crucial tasks. The best part is you will have peace of mind, as now an expert (and we are!) in handling your accounts.
You may need us , should you write a business plan to get a loan. If you get help from a quality accounting service, then you can create a more realistic and professional plan, which will more likely succeed. If you entertain help from a professional at an early stage, then you should see the benefit from the CPA’s financial knowledge from the onset. If you wait until later, you may need corrective help, with additional fees.
Various factors determine the type of legal structure you may choose. Entities available included limited companies, unlimited corporations, limited liability partnerships or sole proprietors. Each are different from one another. You need to consider each type, before you decide which is the best one for you! There are lots of explanations of each on the internet, however be sure to read up on those within your province or state.
But running a business under your own name, will also make you liable for any business obligations, so you need to be careful. Say you fail to pay a supplier due to any reason, due to defaults on a debt or loss on a lawsuit! In such a situation, a creditor may legally mount a claim against your house and seize (after a period of time) your personal possessions.
Alternately, in a limited liability company structure, it is a very different case. Incorporated, the liability of the business is limited to the assets which are owned by the business, but not by you personally.