When first starting a business,common to take on your own bookkeeping and tax preparation as well. This canwork fine for a while, but over time can lead to stress and burn out. Here aresome key indicators to let you know it's time to outsource to the professionals.
You don't want to wait until CRAcontacts you notifying you of late fees and penalties due to late filing.Chances are you did not start a business excited to do bookkeeping and filingtaxes. It is easy to fall behind on our bookkeeping and tax obligations whenthey are not our first priority. Problem is that pour record management,remittances and payments can quickly have a large consequences for growingbusinesses.
Your businesses remittance deadlineswill depend on your fiscal year end, the size of your business and the type ofbusiness you run. Types of remittances may include income tax, GST, PST, WCB,payroll, etc.
It is important for your bookkeepingto be in order so that you know exactly what amounts are to be remitted in thefirst place. You will want to ensure that your business transactions arerecorded and reconciled each month.
If you have not been filing, missingdeadlines or not paying the correct amounts it is most likely your books arenot accurate and up-to-date. This is a good indicator it is time to hire abookkeeping and tax service.
The longer you leave it, the moremistakes could happen and the more it will cost in the long run.
As a business owner you inevitablywear many different hats. In the beginning many business owners will take onbookkeeping and tax preparation as one of those hats. As your business grows sowill the number of responibilities you have. Your books and income tax willover time become more and more complex as well.
Investopedia defines opportunitycosts as:
Opportunity costs represent thepotential benefits an individual, investor, or business misses out on whenchoosing one alternative over another
There is a good chance that you maybe missing out on big opportunity costs when you spend too much time trying tokeep your bookkeeping up-to-date and accurate. If you concidered the time youare spending inputting invoices, receipts, reconciling, adjusting, remittingand paying expenses when you could be spending that same amount of timegenerating more business for your business it's time to outsource to aqualified bookkeeper and tax pro.
If your business is alreadysuccessful but you are missing our on your personal life because you arespending your evenings doing entries instead of spending quality time withfamily and friends, it may be time to outsource to a qualified bookkeeper andtax professional.
When your bookkeeping is notup-to-date or accurate you will start to notice the negative effects in yourbusiness. It is had to make important business decisions without having anunderstanding of your businesses financial picture at any given time.
There is more to having accuratelykept books than just entering invoices and receipts. It is important tounderstand the entire accounting cycle. How it all comes together and why.Knowing how to read, understand and analyze financial statements and useaccounting KPI"s (Key Performance Indicators) empowers you to make soundbusiness decisions.
If you are questioning yourself orif your books and tax filing is getting out of hand it's time to stop doing itall yourself and trust the experts at Switzer & Company to help you getback on track. Save yourself the time and stress. Avoid making anymoremistakes. We can help ensure your business decisions are based on up-to-date,accurate financial management practices.
Call us today (250) 300-1180.Entrepreneurial freedom is closer than you think.