If you’re a small business owner chances are you like doing things on your own.
While there are a lot of benefits to running your own business, unless you love math and crunching numbers, odds are bookkeeping and preparing your taxes are not something you love to do. If this is the case, where do you turn?
While hiring a bookkeeper may seem like an added expense, a bookkeeper that has experience working with small business owners can save you a lot of money in both the short and long run, and help you get your business to the next level.
Below are 8 reasons why it makes sense for your small business to hire a bookkeeper.
1. Alleviates Stress
The majority of Canadian small business owners admit that preparing their taxes causes them a great amount of stress. Unfortunately, saving receipts, understanding tax deductions, and filing taxes are a necessary part of running a business.
A small business bookkeeper can help alleviate that stress. Hiring a bookkeeper, even on a temporary basis, means accurate and timely reporting of your expenses, tax deduction, budgets, etc.
2. Organize Your Finances
One of the main reasons why small business owners hire a bookkeeper is to keep their accounts in order year-round.
A bookkeeper that works with small business owners and independent contractors understands how to develop a system that organizes your finances, this includes all of your receipts, invoices, deposits, etc.
If you can’t account for all of your finances, you could end up paying taxes on money that isn’t even income.
Once you have a system in place that works for you, your month end, quarterly data, and year-end becomes that much easier to deal with.
It also provides you with a clear picture of your business’s financial health.
3. Plan for Major Expenses
A bookkeeper can help you plan for major expenses, such as office upgrades and new office equipment.
They can help forecast seasonal ups and downs, ensuring you have access to capital during the slow months and avoid taking out too much money during good months.
Best of all, because of tax-saving loopholes, a bookkeeper can also tell you what time of year is best to make major purchases.
4. Take Advantage of Tax Deductions and Expenses
Another big reason to hire a bookkeeper is to make sure you’re taking advantage of every possible tax deduction. The more you claim the lower your tax bill.
There’s a lot to know when it comes to expenses and what you can claim. And missing a deduction means paying more in taxes than you legally need to.
Even though you don’t need to send in original receipts when you file your taxes, if the CRA wants to see proof of a claim and you can’t find it, you can’t claim it. Doing so could result in a more detailed audit, and possibly penalties and interest charges.
5. Keep an Eye on Your Invoices
As a small business owner, one of your goals is to make money. Late and unpaid bills are essentially interest-free loans that can put a huge dent in your cash flow and business goals.
A bookkeeper can put a process in place that helps keep an eye on your invoices. This can include sending out a second invoice if a bill is late, making a phone call, or issuing a late fee penalty.
6. Withholding Taxes
If you have employees, a bookkeeper can help with withholding taxes.
Figuring out employee deductions, whether it’s CPP, EI, taxes, benefits, or even an RSP match, a bookkeeper can help you deal with all of the ins and out of different federal and provincial withholding taxes.
7. Help with an Audit
There are numerous reasons as to why you could get audited, from suspicious numbers to being randomly selected.
No matter what the reason, as far as the CRA is concerned, you’re guilty until proven innocent.
In the unlikely event that your small business gets audited by the CRA, a bookkeeper can help walk you through the process and ensure your audit is dealt with fairly and quickly.
In dealing with an audit, a bookkeeper can:
- Review previous tax returns
- Help comply with pre-assessment reviews
- Deal with tax re-assessments and filing tax adjustments
- File any late taxes
8. Your Finances Are Getting More Complex
Hopefully your small business attracts more customers and grows. When it does, you’ll end up investing more in your business and building your infrastructure.
A growing business also means your finances are going to get a lot more complex. If this happens, call in a bookkeeper that specializes in working with small business owners.
FBC – Providing Bookkeeping Services to Small Businesses
As a small business owner, you probably want to be in charge of all aspects of the business. But if number crunching, drafting reports, accounts receivable, payable, and preparing taxes aren’t your forte, and you’re looking to save money, it’s time to hire a small business bookkeeper at FBC.
Since 1952, the tax experts at FBC have worked exclusively with small business owners, self-employed contractors, farm operators, independent contractors, and entrepreneurs, prepare and file their annual taxes accurately and on time.
At FBC, we understand that every business and its tax planning needs are unique. That’s why FBC is the only firm in Canada to offer integrated tax services on a year-round Membership basis.
For a fixed fee, Members get year-round access to our tax planning, tax preparation, consultation, bookkeeping, and financial planning services. FBC also provides all new Members with a review of their previous three years’ tax returns.
For more information on FBC and the services we offer, call us today at 1-800-265-1002 or submit an online form and an FBC tax specialist will contact you at your earliest convenience.