Small businesses often choose to hire accounting firms for a variety of reasons. Accounting firms can help their client navigate the taxes and financial needs of a business and the business owner. Here are some of the most common reasons why small businesses love to hire accounting firms (and CPA firms especially!):
Financial Expertise
Accounting firms have experienced professionals who are knowledgeable about accounting and financial management. Small businesses can benefit from this expertise, especially those without an in-house accounting department or staff. Accounting firms can provide advice on cash flow management, budgeting, and forecasting. This will help small businesses make strategic decisions about investments, expansion, and other business operations.
Time Savings
Maintaining accurate financial records can be time-consuming, especially for small business owners who are already stretched thin. Accounting firms can handle routine financial tasks like tracking income and expenses, managing accounts payable and receivable, and reconciling bank statements. This can free up valuable time for small business owners to focus on their core competencies, such as sales, marketing, and customer service.
Cost Savings
Outsourcing bookkeeping tasks to a firm can be cost-effective for small businesses, especially compared to hiring an in-house accountant or bookkeeper. The average bookkeeper salary on Glass Door in 2022 was $47,816. CPA Canada listed the average salary of a CPA in Canada as $76,146. Accounting firms can charge a flat fee or hourly rate, depending on the services provided. This can help small businesses save money on salaries, benefits, and overhead costs associated with having a full-time employee.
Compliance with Tax Laws
Accounting firms can help small businesses stay compliant with tax laws and regulations. This can include preparing and filing tax returns, ensuring that all tax payments are made on time, and keeping up to date with changes in tax laws. There are lots of taxes in Canada (sales tax, payroll taxes, corporate taxes, personal taxes etc) and it can be hard as a small business owner to stay on top of all the compliance without help and guidance.
Improved Financial Management
Working with an accounting firm can help small businesses improve their financial management practices. Accounting firms can provide financial reporting, analysis, and consulting services, which enables small business owners to understand their financial statements and make informed decisions about their business.
Reduced Risk
Outsourcing bookkeeping tasks to a firm can help small businesses mitigate risks associated with certain tasks. Accounting firms typically have the skills and experience to manage financial risks effectively.
Overall, small businesses love to hire accounting firms because they provide financial expertise, time and cost savings, compliance with tax laws, improved financial management and reduced risk. Hiring a bookkeeping firm can enable small business owners to focus on running their business while leaving the financial matters to experienced professionals.
Virtual Heights Accounting is a CPA firm that operates in the virtual world. We provide virtual bookkeeping, accounting, and tax services for your growing Company. Contact us at www.vhaccounting.ca/contactus or follow our blog on your chosen social media source.
