Financial management is one of the most crucial aspects of your business that can decide the fate of your venture. When you are starting out, the financial figures are not that vast and can be managed by a single person. But, as your business keeps growing, your responsibilities, as well as financial responsibilities increase. Most entrepreneurs start making errors at this stage.
Accounting and finance management is not just about recording transactions and cataloging expenses. It is about maintaining financial records in a way that allows your business to strategize better and move towards growth and profits. Right from managing the inventory and payrolls to filing taxes on time, all these tasks are a part of accounting.
The way you handle your finances can decide the success or failure of your business. Whether your business is a sole proprietorship or a Limited Liability Partnership (LLP), you must know when to get in help to ensure accurate accounting and financial management. After all, you certainly do not want to be in a crisis situation and close all doors to the success of your dream venture.
Financial needs of a growing business are enormous and an accountant may not be able to handle it alone. Hiring a reputable accounting firm can be highly beneficial for flourishing businesses. Hence, it is important to make sure that you not only hire an accounting firm but hire an experienced accounting firm that offers comprehensive and quality services. Imagine, consulting a firm whose team turns out to be unprofessional and ill-equipped to deal with the needs of a growing business. This can do more harm to your organization than the reduced costs by hiring an ill-equipped firm.
To help you get started, here’s a closer look at the ways the right accounting firm can benefit your business and steps to choose the right one:
When you hire a full-time accountant for handling your business’s financial requirements, you then utilize the talent of just one person. Additionally, if the accountant you hire has a minimal experience, then they may not be well-versed in all areas of accounting. When you hire an accountant, there’s no one to oversee their work. A single mistake with finances and taxes can cost your business a fortune.
Outsourcing your financial management to a good accounting firm will eliminate these issues. These organizations have a team of bookkeepers and accountants who are experts in various areas of financial and tax management. Since they understand the importance of these function for a business, they double check their work. Hiring an experienced accounting firm allows you access to the expertise of a team of professionals at a minimal cost.
If you plan to hire a single accountant for your business, you will need someone with a vast experience. Experienced candidates come at a cost. The average salary of a chartered accountant in Edmonton, Alberta is approx. C$50,000 to 60,000 per year. Professionals with experience come at a higher cost. Also, if the employee turns out to be the wrong fit, then it may lead to additional expenses of re-hiring.
A growing business demands your attention towards crucial activities like business development, goal setting, and strategizing. Since you do not have extra time to spare for the new hire or pour out additional expenses on re-recruitment and training, hiring a bookkeeping service is the most viable option. They are experienced professionals, so you do not have to worry about errors and employee turnover. Plus, you do not have to pay exorbitant wages. With an accounting firm, a monthly service fee can get you a team of professionals on board.
Missed tax deadlines are one of the most common issues that small and medium-sized firms face. This happens due to the lack of proper financial management and end moment tax calculations. There’s no doubt that taxation is a complex subject. It is governed by laws that keep changing constantly, as well as entails complicated procedures. Even if you explore the online tax filing option, there are chances you might miss out on deductions or make errors. As an entrepreneur, you don’t have time to dedicate additional time to understanding tax laws and calculating payments.
With a professional tax service by your side, you will never have to worry about tax deadlines, refunds, and deductions. Since they are well-versed with the tax laws and procedures, you don’t have to fret CRA agents and huge tax payments. In order for this to be a carefree task, your assistance in communicating and providing your accountant documentation on time is crucial.
Gone are the days when there were piles of accounting books lying in a cabinet of your office. No longer do you have to browse pages of innumerable books to find an entry. The age of internet and digital systems has taken over various business operations including accounting and bookkeeping. Accounting and cloud-based record keeping software make bookkeeping quicker and easier.
Professional accounting service firms operate with advanced software and technologies. Plus, they keep updating their staff with these systems to ensure their clients’ financial management is not hampered. By outsourcing your accounts to a team of experts, you don’t have to bother about missed receipts and pay slips as every record is electronic. You have an organized financial management system by partnering with an accounting firm.
Finances are an important aspect of all your business decisions. Whether you plan to expand your business or upsize it, one of the most important factors to consider is money. Without a proper financial management system in place, you do not have accurate financial reports. Thus, entrepreneurs are unable to make crucial business decisions and this hampers their growth and profitability. Outsourcing your financial management to professionals means you have an organized system for handling your finances. This allows you to have a strong base for making strategic business decisions and drive your business towards growth and success. Most professional accounting firms also offer assistance with understanding financial reports and measurement of performances. With expert tips and guidance, you can focus on planning for growth and attain successful heights.
The benefits offered by professional accounting firms may want you to hire one. But, it is important to choose the right accounting firm for your business. So, how do you do that? Let’s take a look.
Not every accounting firm will allow you to reap benefits of a good financial management system. You must consider the factors mentioned below before outsourcing your business’s financial management to a third party:
Knowledge and experience matter in the case of financial management. Inexperienced professionals are a No when outsourcing your accounting management. Reputed accounting professionals have great success stories and experience to share. Additionally, they have a vast team with experience in the field of business management. Check for their knowledge, experience, and make sure they are also up to date with the changes in tax law.
You do not want to hire two to three firms for different accounting services. Check the services that the firm offers while looking for a good accounting services provider. For full-fledged financial management services, you need your accounting partner to help you with bookkeeping, taxes, payrolls, and various other accounting tasks. Most professional firms offer all these services at a reasonable cost.
You do not want to hire someone who cannot explain the complex accounting terms in a simple language. Furthermore, the service provider must be able to update you frequently with the financial status of your company, including things that are going good and the problems that might be arising in the future. Just because you outsource your business’s financial management to a professional service provider, does not mean you do not have to look into accounting matters anymore. Make sure the professionals you hire have good communication skills. They must be able to simplify things for you and keep you informed on your business’s financial status.
You certainly do not want to experience the problems of data loss after you have hired a professional accounting service provider. Make sure the firm you seek to hire has latest tools and technologies in place for efficient financial management. A good accounting firm must also be at par with the trends of the industry. Only then will they be able to provide you with effective advice and top-notch services.
This is one of the most important reasons that small businesses fail to acquire professional services and end up suffering because of poor financial management. Accounting services come at various prices. You can get reliable accounting services at reasonable prices which cost you less than a full-time employee. Weigh the pros and cons of hiring an accounting service in relation to your business status. Investment in professional financial management services typically don go wrong.
If you are struggling with accounting and financial management, then connect with our experts today. We, at Altitude Accounting, offer a wide range of accounting services that help you drive your business toward forward.
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