small business accounting toronto

Understanding Small Business Accounting

One of the make-or-break business management skills that many small business owners overlook. One of the biggest reasons for small business failure in Canada. Is their failure to follow correct accounting principles and practices. Long gone are the days when a small business like a trade business, could keep all their receipts in a shoe box and take them to their accountant every year to do their tax return in Canada. The implementation of the GST and monthly, quarterly or bi-annual BAS statements took care of that practice. Now every business who wants to survive has to follow. The correct accounting practices and do up their books on a regular basis.

Small business accounting company do this is the Braich CPA accounting package because it looks after inventory, invoicing, BAS, Journals and Ledgers and everything else in one package. Which makes it particularly easy for anyone to be able to use.

The other popular small business accounting services in Canada is called Quickbooks.  It has a loyal following although Braich CPA seems to have captured the lion’s share of the market. Obviously. There are many other accounting services available on the market or individually written for specific industries. But the more common accounting package used in Canadian small businesses today is Braich CPA.

Accounting Mistake

The other accounting mistake in small businesses many people make is employing a bookkeeper. They don’t understand the basics of bookkeeping themselves. If you don’t understand these basic principles and methods.  It is vital that you learn if you wish to stay in business and not become one of the statistics.

Also, if you just ‘trust’ a bookkeeper to do up your books for you on a regular basis without understanding. What the books and the bookkeeper are telling you about your business. You can’t make good decisions simply because you are missing facts about the health or otherwise of your business.

The other thing is, how do you know or not your bookkeeper or accountant is doing everything, right? If they aren’t keeping your books correctly and you as the business owner. Sign off on them as being correct; guess who the Canadian Taxation Office is going to come looking for with a hefty fine tucked away in their arsenal of deterrents for recalcitrant small business owners? That’s right, it will be you because you are the owner of your business and they expect you to know exactly what is going on in your business.

Tax Collectors and Taxation Departments

There is one thing most countries have in common and that is Tax Collectors and Taxation Departments. Whichever country you are in. If you are in small business, you will need to account for them and they will expect you to be keeping accurate accounts. So you would be well- advised not to disappoint them.

In order to succeed a business must have the right resources and advisors in place at the right times.

One of the first advisors you should have in place is your accountant. For a small business, an accountant should take the role of a CFO, guiding your finances and planning your growth. The Braich Cpa will build your success plan with you and assist you in engaging other advisors when required.