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One mistake that entrepreneurs should avoid making in their business, says CFO services is hiring an undesignated accountant, instead of a chartered professional accountant in their business. Many entrepreneurs do not understand what the differences between the two, which can negatively impact their business. Since industry, Canada says half of all entrepreneurs end up failing in business within five years, and the three most common reasons that businesses fail are: running out of money, not being able to find enough customers, and not being able to hire the right team. All three of these things can be addressed with the great business plan, which is what a chartered professional accountant is going to be able to help an entrepreneur with. Also, a designate accountant will be able to help an entrepreneur with an efficient tax plan that can help them minimize the taxes that they pay, saving them thousands of dollars every year.
One of the first things that entrepreneurs need to understand is the reason why entrepreneurs need to understand the difference between chartered professional accountant, and an undesignated accountant is because both are able to open up and accounting firm, and take on clients. The only difference is, a non designated accountant only has an undergraduate degree, says CFO services, meanwhile, it takes a chartered professional accountant seven years to obtain their designation, and they end up with an extremely wide knowledge base when they begin their practice. Non designated accountants are only halfway done their schooling compared to chartered professional accountants.
CFO services says that the undergraduate degree that non designated accountants have, is seven years at a post-secondary institution. However, a chartered professional accountant has gone on to do three years of articling to complete their designation. What that articling entails, is working full time in an approved accounting firm, alongside a chartered professional accountant. In addition to working over forty hours a week there, they are also doing additional coursework and tests at home. The coursework that they do is designed to replicate real life accounting situations. Not only does it help them significantly with understanding typical situations they are going to face with real entrepreneurs, but the experience that they gain working in a chartered professional accounting firm at the same time is invaluable.
CFO services says that entrepreneurs are going to end up coming out of the program with an extremely wide knowledge base, not just with theoretical knowledge, but with practical experience as well. For an example, it is one thing for an accountant to learn about the income tax act, and it is quite another to apply it in real life.
When entrepreneurs are choosing the right accountant to work with them in their business, it is extremely important that they hire one who is a chartered professional accountant so that they can have the right professional to help them create tax plans, and business plans, is going to directly impact their ability to succeed in their business.
Business owners should understand that it is extremely important to hire the right chartered professional accountant in their business says CFO services. As Red Adair the man who specialized in extinguishing and capping oil well fires was famous for saying, if you think it is expensive to hire a professional, wait until you higher an amateur.î The same thing with accountants, the right accountant can help an entrepreneur save significant amounts of money and taxes, and give them the best possible business plan to help them grow their business, while the wrong accountant is going to not be efficient with their tax plan, and a gap costing them thousands of dollars every year.
In order to hire the right accountant in their business, entrepreneurs should be looking for a chartered professional accountant, instead of a non-designate accountant. Many business owners try to hire accountants based on a cheaper hourly rate. This is efficient, because even if an accountant has a lower hourly fee, they often lack the experience they need to be efficient, and end up taking way more time, ending up with a larger bill at the end of the month. CFO services says that not only can this end up with an entrepreneur with a larger accounting bill, they also risk ending up with improperly done finances.
Rather than looking for an accountant that is the least expensive, CFO services recommend entrepreneurs find the accountant that is going to be able to do the best job possible, so that they can end up with the great tax plan, and save thousands of dollars at a minimum each year. Also, it is going to allow an entrepreneur to end up with a great business plan, is going to help them be very proactive in achieving their goals, and growing their business. Since the three most common reasons why entrepreneurs fail in business are easily avoidable with the right business plan, entrepreneurs should ensure that there hiring the right accountant that can help them create a business plan that can help them avoid this situation. By hiring the right chartered professional accountant for their business, not one based on cost, but based on experience can help an entrepreneur significantly and positively impact their business.
When an entrepreneur is hiring an accountant, they need to ensure that the quality of information that they end up with is going to significantly help them. They need to going to be able to trust the person that they work with, and trust the reliability of the information they give. Going to have to work very closely with this professional, in order to significantly grow their business, to give it the best chance to succeed. Entrepreneurs will have hundreds of thousands if not millions of dollars wrapped up in their business, and even more in sweat equity, that giving is asset the best chance to survive is extremely important.
