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November 23, 2022   Entrepreneurs, Start-ups, Small Businesses, FinTech and Alternative Finance, Fintech Services, Innovation and Resources, Regtech, Compliance, Governance   No comments

Why Your Business Needs a Tax Accountant

Guest Post | November 23, 2022

Couple reviewing tax documents - Why Your Business Needs a Tax Accountant

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Canadian corporations have a net tax rate of 15 percent, while small businesses have a tax rate of 9 percent. The Canada Revenue Agency (CRA) expects entrepreneurs to file their corporate income tax returns no later than six months after the end of the tax year.

For some business owners, paying taxes can be a massive headache. Fortunately, they do not have to carry the burden of paying taxes alone. Tax accountants can help address the challenges that come with tax paying. Read on to learn how they can help your business.

Spot Tax Deductions

Business owners can deduct certain expenses from their taxes, but they may not know about them. However, if they have a tax accountant, they will have no problem spotting opportunities for tax deductions.

Reducing your firm’s tax liability can be easy with a professional accountant. They can help business owners use all avenues of tax deductions.

During the busy tax season, many entrepreneurs scramble at the last minute to maximize deductions. However, a tax accountant can help identify potential avenues of deductions at any time of the year.

Fix Cash Flow Issues

The pandemic disrupted the cash flow of many Canadian companies, forcing them to borrow money. The crisis pushed 7 in 10 small businesses to take on debt.

With the help of tax accountants in Toronto, entrepreneurs can address their cash flow issues. These professionals can come up with strategies to manage financial challenges. They can organise cash reserves and develop spending plans.

Tax accountants can help you ensure there’s always money in the company’s account. This knowledge can make paydays less stressful.

Prevent Audit

Some people consider an accountant as someone who can fix financial issues after they’ve occurred. Unfortunately, this is not the case. However, they can prevent a financial headache from happening.

One compelling reason to work with a tax accountant is to avoid an audit from the CRA. Preventing an audit can be easy if you have the guidance of an accountant year-round.

There are many explanations why the CRA orders an audit, such as mistakes on tax forms and excessive write-offs. An accountant can ensure that you will not make such mistakes when filing your tax return.

Support Financial Planning

Another crucial benefit of hiring an accountant is getting financial advice on planning for the company’s future.

With their help, you can review past financial reports and examine the seasonality of your company. Doing so can help you determine the appropriate time to buy inventory. It can also help you prepare for significant investments so your business can stay competitive.

See:  Do employees pay less taxes by exercising stock options pre-IPO?

As a business owner, you are busy running the firm’s day-to-day operations. Having an accountant means you have someone who looks at the big picture. They can help find the best way to support your company’s longevity.

Being a business owner can sometimes feel isolating. You will be left with a pile of receipts to plow through at the end of a tax year. However, you do not have to do your accounting tasks alone. By working with an accountant, you will have a guide through your journey to lasting success.

NCFA Jan 2018 resize - Why Your Business Needs a Tax AccountantThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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