Timing is everything.  But sometimes it is difficult to know what is the right time to make certain investments or changes in your business practice.  For example, when is the best time to hire an accountant?

Before Opening a Business

Even in the planning stages, an accountant is a valuable asset.  They can help you create a solid business plan and show you where others have failed.  Knowing the complexities of your undertaking is the first step to success.

Accountants work with lots of different types of businesses and they understand the costs involved with each one.  Being able to estimate and project the expenses will show banks and other lenders that you are serious about how you want to run your business and allow you to accurately determine the amount of cash you will need to initiate your company.

You will need to decide what kind of structure for your company.  Everything from a sole proprietorship to incorporation.  Each has benefits and drawbacks both personally and especially for taxes.  The accountant can give you insight into each and help you choose the best option.

There will also be numerous registrations like GST/HST, Payroll, etc.  Navigating these forms will be easier with advice.

During Operation

If you have already set up your company, not worry.  An accountant can still be beneficial to your ongoing concern.

It is probably safe to say that keeping books is one of the owner's least favorite tasks.  Actually, it can become rather complicated if you are not on top of things.  While not all accountants offer bookkeeping services, many can facilitate the work by recommending computer programs and cloud-based systems to make things easier.

Reaping the benefits of your hard work is what you are after.  However, paying yourself often slips to the bottom of the list.  Depending on the business structure, an accountant can tell you if it is better to draw a salary or to take dividends.  They can also figure out how much you can afford to pay yourself.

As your enterprise grows, an accountant can be invaluable.  There are many governmental reports you will probably need to file.  In addition to taxes, there will be government safety programs to report to as well as regular reports to any investors. 

Buying and Selling your Business

For some, it is more advantageous to simply buy an existing business and turn it into your own.  That also goes for purchasing a franchise.  Your accountant can perform the tasks necessary for due diligence so that you are sure the company is in good financial shape before you take the plunge. 

If you would like to move onto some other project or retire, accountants can produce the financials that will show a prospective buyer the value of your company.  They can also work with the accounts for the buyer to answer any questions and help the process move smoothly.

On a personal basis, they can help structure the sale using lifetime capital gains exemption to help with your own income taxes.

They can also recommend attorneys who are skilled in sales and mergers to assure that everything is in good order and appropriate.

If you are in a trouble, don’t shy to contact us at Capex. We have Professional CPA’s in Mississauga who are happy to sit down and consult with you so that you make the best decisions possible for your business.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team