Strategic Planning & Business Consulting

Looking to open a small business? Here’s what you need to know

January 12, 2022

Closeup woman filling form of Individual Income Tax Return,

Starting your own small business can be a highly rewarding—even liberating—endeavour. For those who long to chart their own course, control their own destiny, and thrive outside of their comfort zone, opening a small business can be an extremely lucrative means of doing so.   

As a small business owner, you’ll be free to make decisions on how best to lead your company into the future. You can discover your own work-life balance, challenge yourself, be creative, learn new things, and follow your passions while also reaping the material benefits of all your hard work.  

It’s like the old proverb says—if you love what you do, you’ll never work a day in your life. Sounds perfect, right? 

While there are many upsides to running your own business, it can also present its own set of challenges. Difficult as it may be, as the persistent myth of the self-made entrepreneur looms large, it is advantageous—even essential—to leverage all the help and support you can muster in the early stages of operation.  

In most cases, this means outsourcing tasks to dedicated experts for the good of the company—and unless you’re a CPA who is opening an accounting firm—that’s the best place to start.  

Accounting for small business 

Accounting helps small business owners keep track of their assets, liabilities, income, expenses, and cash flow, which allows them to monitor their financial performance and make informed decisions. It is also essential for tax reporting. In Canada, failure to keep detailed records for tax purposes can result in hefty fines and penalties for small businesses. 

All businesses, no matter how big or small, need someone to manage their financial data—a task that many small business owners quickly discover is more onerous that it appears. While small business accounting tends to be simpler than that of big business, accounting errors can be devastating to small businesses and thus are best to licensed accounting professionals.  

What is a CPA and what do they do? 

Chartered Professional Accountant (CPA) is a licensed accounting professional who has completed CPA training in Canada, or who was previously designated a Chartered Accountant (CA), Certified Management Accountant (CMA), or Certified General Accountant (CGA) prior to 2015.  

While an accountant’s specific duties may vary from workplace to workplace, CPAs deliver value to small businesses by ensuring the accuracy and legitimacy of a company’s financial data, enforcing compliance with all applicable laws and regulations, and keeping accurate records of financial transactions

Influencing business strategy 

CPAs also make valuable contributions to a company’s overall business strategy by identifying underlying problems that can be financially rectified to improve efficiency and profit margins while assessing factors like liquidity, solvency, probability, and operating efficiency to enable informed decision making in the short- and long-term. 

In short, we provide valuable input on key business decisions and strategy, applying our unique blend of skills and expertise to help companies identify new market opportunitiesensure corporate accountabilitymanage risk, and maintain a competitive advantage in the marketplace long-term.  

Tax reporting 

Tax-related accounting errors can be extremely costly to your organization. In fact, a recent article by Forbes suggests that this alone is enough to justify hiring a dedicated licensed accounting professional to handle your finances.  

Keep in mind that you are paying yourself for work you put in, so even if an accountant’s hourly rate seems high, it will take them significantly less time to complete the work, and with laser accuracy. This is especially true if your tax situation escalates into an audit situation.  

Ready to get started? 

At DDL & Co., we provide a full suite of advisory services, including in the area of accounting, assurance, taxation, and business advisory services, to a whole host of industries. We pride ourselves upon providing reliable, timely, and accurate services at exceptional value to all our clients.  

Our team of professionals work hard to understand your business, your goals, and your objectives in order to help you achieve them. So, if you are a small business owner looking to grow your business through accounting excellence and robust business strategy while minimizing tax liabilities, give us a call at (905) 680-8669 or visit our website to request an appointment.