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E-Myth – “Why most small businesses don’t work & what to do about it”

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CFO Services | How A CPA Will Help An Entrepreneur Save Money

Entrepreneurs have a very difficult job opening their business says CFO services. The failure rate for entrepreneurs is quite high in Canada, with 15% of all businesses failing within the first year, 30% failing by their second year, and 50% of all businesses failing by their fifth year in business. One way that entrepreneurs can to avoid that fate, is by hiring the right accountant for their business. The reason why an accountant can significantly help with those statistics is that an accountant can help an entrepreneur with their financial statements, their business plan and their tax plan. These things altogether can help address all of the most common reasons why entrepreneurs fail.

One thing that business owners should keep in mind, is hiring the right accountant. Because not all accountants will have the same level of experience. CFO services says that accountants without a professional designation of CPA can operate as an accountant and even open up their own firm, but they have far less experience than the accountants that have completed their chartered professional accounting designation. Business owners should understand that not every single accounting firm that they walk into will have a chartered professional accountant on staff, and what they need to look for in order to ensure that they do have the right credentials in order to help an entrepreneur.

Business owners should first understand that undesignated firms often play up their undergraduate degree, often having it prominently displayed on their office walls. The accountant will often tell people that they majored in accounting and that they had experienced in the CPA program. But without expressly saying that they did not complete it. CFO services says that businesses should be very aware that not all accounting firms will be the same. In order to find an accounting firm that has a chartered professional accountant as the owner, entrepreneurs should be looking for firm that has CPA, CA, CGA, CMA or LLP after the name. These are all indicators that they have completed their designation. Or, they might have the words chartered professional accountants or professional associations in the title.

Because the chartered professional accountant will have had far more years of experience than their undesignated counterpart, they will be able to prepare a much better and much more complete tax plan. This tax plan will help entrepreneurs save thousands of dollars at a minimum in taxes each year, and that can be significant in helping entrepreneurs maintain a positive cash flow in their business, so that they can use that money to buy assets to grow their business, orís have the money available so that they avoid running out of money which is the second most common reason why businesses fail. Having a great tax plan is so important, the business owner should ensure that they have a chartered professional accountant to help them with it.

By knowing what to look for as well as what to avoid when entrepreneurs are hiring accountants for their business, they can end up with the best business professional possible, they can significantly help them grow their business and efficiently tax plan.

CFO Services | How A CPA Will Help An Entrepreneur Save Money

One of the challenges that entrepreneurs often face in business says CFO services, is that they start their business with hardly any money, and have to be extremely frugal from the start. However, business owners should ensure that they are not being frugal and one very important area: hiring their accountant. A great accountant is going to be able to help an entrepreneur save far more money in taxes than they will cost in an hourly fee.

When entrepreneurs make the mistake of hiring an accountant based on hourly fee, they often end up hiring an undesignated accountant. CFO services says the reason for this is because since undesignated accountants have half the schooling, they charge a lower hourly rate. Business owners who are trying to save money, often hire those accountants, and while they think it is saving them money, they actually end up paying more at the end of the month, because the on designated accountant is not able to complete the job as efficiently as a designated accountant could. So not only are they hiring someone to do the job inefficiently, the lack of experience on behalf of the undesignated accountant and zipped meaning that the work is done not as efficiently are well as a chartered professional accountant could do it.

When chartered professional accountants are going through their schooling, they will complete their four-year undergraduate degree in business, just like undesignated accountants. That, unlike undesignated accountants, were they stop doing their schooling there, chartered professional accountants are continuing their education through the program. This means that they have to get a job in an approved chartered professional accounting firm, apprenticing with a chartered professional accountant. These three years of full-time work says CFO services can help an accountant to gain invaluable practical experience.

However, that is not the only thing that an accountant who is going to get their chartered professional accountant designation does. CFO services says that they also have to continue doing coursework and tests in their spare time at home in the evenings and weekends. The coursework that they are doing is designed to replicate typical accounting situations that entrepreneurs will run into. So the CPA program is giving accountants extremely valuable practical experience both working with real entrepreneurs and in real situations, as well as similar problems at home and then their spare time.

When entrepreneurs are aware of the differences between but a CPA is, and what an undesignated accountant is, then they will end up with the best accountant for their business, one who is going to be able to do the job efficiently and effectively, one that can end up with they great business and tax plan for an entrepreneur and their business.