CFO Services | Are Financial Plans Necessary To Businesses
Financial plans as well as tax strategies help save entrepreneurs money and should be one of the important CFO services they are getting from their accountant.
In fact, it can help entrepreneurs save so much in taxes. That it pays for the cost of creating the financial plan and tax strategy themselves.
One mistake that many business owners tend to make. Is thinking that in an effort to save money. They will get these important documents created. But plan on getting them later in their business.
Or, the mistake they make is thinking that it is not going to be financially beneficial for their business. Until they are making hundreds of thousands of dollars a year in their business.
However, this is a very dangerous assumption to make. Because the failure rate for businesses in Canada is very high.
According to industry Canada, not only will 15% of entrepreneurs fail in the first year of business ownership. But also, 30% of entrepreneurs will fail in the second year as well.
By the time five years roles around, half of all small businesses that open in Canada will still be around. Making it incredibly important for business owners. To implement any strategy that can help them as quickly as possible.
Also, business owners need to take into consideration. That they do not have to be making hundreds of thousands of dollars to benefit from a financial plan.
And that if they are making fifty thousand dollars a year in gross income. That has enough to make a financial plan and tax strategy worthwhile.
However, since many business owners still want to save as much as possible. Especially early on in their business. They should seek out and accounting services such as Spurrell and Associates.
The reason why, is because they understand how important financial plans and tax strategies are to the success of the business. Which is why not only do they offer them as part of their regular services.
But also, because they do not charge any additional fees for these important documents. So that they are more accessible to more business owners.
As well, because they do not charge any additional fees. They will ensure that business owners have a tax strategy not just once in their business.
But they will redo the exercise with their business owners every single year. So that business owners will always have the most effective tax strategy in their business. To help minimize taxes that they pay.
They have been able to achieve this. Because they have been doing financial plans and tax strategies for so long. That they have created a template. That allows them to be very efficient at it.
Not only is being efficient important to save time. But CFO services says that it also enables their accountants to spend more time on parts of the plan that require more thought process.
Therefore, if business owners get there CFO services with Spurrell and Associates. They will be able to have the documents they need to help them succeed in business.
CFO services | are financial plans necessary to businesses
While business plans, financial plans and tax plans are important to the success of businesses says CFO services. Many business owners do not get these plans created. Because of the expenses associated with it.
However, business owners need to take into consideration. That not only are financial plans vital to the success of their business.
But also, they will end up saving more money in save taxes. Then they will have spent on the financial plans themselves.
Therefore, business owners should look at it as a way of saving money. As long as they are making fifty thousand dollars of income in their business.
And most small businesses and even solo-preneur’s will be able to save this money because they will be making at least that threshold in their business.
And even if business owners are not quite their in the income. CFO services also recommends that they get this plan created. So that as they cross that threshold. They can implement that strategy right away.
However, some business owners think that because they are already using an accountant and already are getting many different CFO services. They already have an efficient tax plan, or financial plan.
There is a quick way that entrepreneurs can figure out if they likely have an effective tax strategy or not. Is by looking at how they take money out of their corporation.
If a business owner is taking 100% salary out of their business. Or if they are taking hundred percent dividends out of their business. This is a sign that they typically do not have an effective tax plan.
An effective tax strategy typically requires a combination of both. But what that combination is specifically. Depends on the entrepreneurs personal and business circumstances.
And that should be determined by their accountant, after considering their personal circumstances. As well as what is going on in the business.
And because of that, if entrepreneurs are not taking a combination of salary and dividends out of their corporation. They likely do not have an effective tax plan or strategy. And they should work to rectify that.
Entrepreneurs should come to their accountant’s office. Prepared to discuss their personal finances. Including things like consumer debt, other debt like mortgage or car payment.
They should be willing to discuss what their monthly payments in bills are. And what those bills are, such as if they are utility bills, or phone and Internet for example.
They also should discuss what other streams of income they are getting into the household. Such as from other family members who may be bringing in and income.
Or if the entrepreneur themselves has another job. As well as if there are investments, or investment properties. That are generating money into the household.
By taking all of these things into consideration. The accountant can look at minimizing personal taxes. As well as minimizing corporate taxes. To end up with the right to strategy.
That will help entrepreneurs not only pay fewer taxes. But help them have a plan, that will allow them to be more likely to succeed by overcoming common obstacles.