Every Small Business Needs to Know
Running a small business is a challenge, but with the right help it can also be rewarding. Share the challenge with someone as committed to the success of your business as you are — a certified general accountant (CGA).
CPA/CGAs see more than numbers. They provide the knowledge and skills that go beyond typical accounting services such as the preparation of financial statements and tax and audit activities. CPA/CGAs see the big picture and provide the financial expertise to identify opportunity. After all, shouldn’t every aspect of your business have the potential to strike a high return on investment?
A Business Plan is Your Road Map to Success
Every small business needs a plan to embark on the right path and achieve steady growth. Think of a business plan as a road map to success and plan your trip accordingly:
- anticipate challenges and opportunities
- determine how your business can grow
- identify strengths and eliminate weaknesses
A CPA/CGA has the skills and expertise to plan your map, get you started and keep you on the road to success.
Business Structures Affect Taxes and Liabilities
Most organizations have three forms of business structures from which to choose: proprietorship, partnership and corporation. The business structure you choose will determine the taxes that you pay as well as your legal liability.
The right business structure will maximize the potential of your business and help you avoid surprises at tax time. Ask a CPA/CGA to help you identify the most appropriate structure for your business.
Employees Need Attention, Too
From the moment you hire your first employee, you must:
- consider compensation plans
- maintain payroll information
- meet employment standards
- understand labor and tax law
Just meeting the needs of employees can be a full-time job, and failing to comply with just one of the many regulatory requirements can be costly. Protect yourself, your business and your employees. Consult a CPA/CGA.
Good Record Keeping Makes Good Business Sense
Not only is good record keeping the law — good record keeping makes good business sense.
The law requires businesses to maintain books of original entry, sufficient to determine that all taxes have been collected, paid and assessed. Additionally, your business needs to keep records so you can measure your progress and identify opportunities to grow.
Ask a CPA/CGA to help you establish an appropriate record keeping system and ensure that you and your employees are trained in its use. A well-designed system saves time and money, and provides quick access to the information necessary for day-to-day decision making.
Tax and Payroll Deductions Remittance is Mandatory
Retail sales tax (RST), goods and services tax (GST) and payroll deductions are held in trust for government agencies. These taxes and deductions must be remitted — on time and in full — no matter how tight the cash flow of your business. The penalties imposed for failing to remit can be significant.
A CPA/CGA can help you submit accurate filings and remittances on time and will work with you to anticipate and avoid cash flow problems.
Your Banker Is Your Ally
Your banker wants your business to succeed — why else would the bank lend you money? Help your banker to understand your business by providing detailed, timely and pertinent information with the help of a CPA/CGA.
When your banker is your ally, your ally is a small business asset.
You May Not Want To Do This Forever
The day may come when you want to retire or move on to other challenges. A CPA/CGA will help you plan for that day. Whether you want to sell or bequeath your business, it’s never too soon to consider how to fulfill that intention. Making the right decisions today will help ensure that you can exit your business knowing that your needs and the needs of your business are satisfied.