Accounting services: What to do when the shoebox overflows
As a business owner, you focus on increasing your revenues by channelling your efforts into sales, marketing and production, which leaves less time for record-keeping and accounting. Stuffing receipts into a shoebox may be a common approach to tracking expenses at the start of a business, but it is not the best solution long term. Proper financial management can help your business prosper, so if you can't give it the attention it deserves, consider finding someone who will.
Keeping careful records of all your business transactions makes sense for a number of reasons:
- You are required to keep adequate records, as stated in various acts.
- You can use details of transactions at a later date.
- You will be able to easily determine earnings and expenses.
- You will have proof of earnings and expenses.
- You may be able to determine how to increase earnings and decrease expenses.
Anyone who has a business and must pay or collect taxes or remit payroll deductions or GST/HST needs to keep records. You might find that, as your business grows, your system may evolve from an overflowing folder to manual bookkeeping to accounting software. Eventually you might want to delegate these responsibilities to someone dedicated to this task.
What are the advantages to hiring someone to take care of your bookkeeping or accounting?
- A professional will be aware of new and frequently changing accounting rules.
- The investment can save you money when deductions are maximized and penalties are avoided.
- You can be ready for any business opportunities by having a full picture of your financial situation at your fingertips.
- Financial statements that reflect your business performance can be used by tax officials, investors or creditors.
If you do not wish to hire staff to look after bookkeeping or accounting, consider outsourcing some or all tasks to freelance professionals or companies that provide such services. These tasks might include:
- Payroll and year-end T4 slips
- GST/HST remittance and returns
- Financial statements
- Tax returns
Turn a necessary chore into a tool that will help keep your financial house in order. What first steps will you take to get organized?
Explore our section on Bookkeeping and Accounting to learn more about record-keeping and finding an accountant. Our section on Business support organizations may provide more useful leads to outside resources.