Tax and accounting services for small businesses save you time, money, and hassle obviously. When the need for accounting and tax services comes, entrepreneurs often do not realize all possible solutions, believing that they have a choice between full-time accountant employment and doing their own bookkeeping. On the one hand, this is a good experience, since you are to fully emerge yourself in your business. But at the same time, accounting takes a lot of time and effort, and serious mistakes can lead to high fines.
Complex taxation is always an obstacle to the economy. It allows you to better and more honestly control budget revenues, but at the same time discourages many entrepreneurs from starting or expanding their businesses. Compared to the United States, taxation in Canada is simpler, especially when it comes to small businesses. However, some services are greatly underestimated by entrepreneurs, and instead of hiring a professional accounting specialist, they tend to chart accounts on their own.
In fact, there are more options and you should choose a service that will better meet the requirements of your business. The following options can act as solutions to accounting needs:
Paid programs are easily customized to suit your needs and have a user-friendly interface. If you are doing business according to simplified taxation, this can be a full-fledged replacement for a bookkeeper.
Many companies have a small number of transactions, which leads to fairly simple bookkeeping. In such cases, outsourcing or remote accounting will be the most convenient and economical option. But for successful cooperation, you will need to hire a really decent person.
Hiring a full-time accountant.
A full-time employee needs to pay a salary, organize a workplace, purchase computer equipment, furniture for storing documents, and special software. In addition to costs, it is important to understand whether the employee will be loaded full day, since if you have a small company, then perhaps having an accountant may be superfluous.
What to choose?
In Canada, small businesses make up a huge part of the economy. 98% of employers in 2020 were small businesses. For many small companies, outsourcing accounting and tax services greatly simplify business management.
There are entire companies that provide professional accounting services and are ready to maintain complex accounting for any type of business. But if your company has a minimum of employees, simple accounting, it is better to hire an outsourcing specialist. This option is also suitable for business beginners or those who do not have enough time to solve complex problems.
How much do accounting services cost?
Hiring freelance accounting services are often much more beneficial for entrepreneurs whose business does not exceed 100 employees for production or 50 for services.
But it is necessary to calculate your cost of accounting services taking into account the industry. As Fee4Bee accounters note small IT companies have few transactions, but usually large amounts. Any accountant will tell you that in this case, it will be much easier to keep the bookkeeping than, for example, in a nail care salon, where there are a lot of payments for a small amount every day.
Generally, your small business accounting services cost will depend on the following factors:
The number of documents;
Size of the enterprise (turnover and number of employees);
The complexity of the task.
If taking all these factors into account you find a certified bookkeeper in the CAD 50-150 range, then most likely you are not overpaying and can always rely on accuracy in paying your taxes.