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

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Edmonton Accountant | Should Entrepreneurs Hire One Person Accounting Firms

One of the more significant choices that an entrepreneur is going to make when they are first starting their business, is which Edmonton accountant to hire in their business people many entrepreneurs make the assumption that if they hire a single person accounting firm that they are going to get better service. However, business owners should take several things into consideration when hiring which accounting firm they want to work with, including what type of services they would like to get. Many single person accounting firms only do year end financial statements and filing for entrepreneurs, and in order to increase their chances of succeeding in business, entrepreneurs may want to consider an accountant that does business planning as well as tax planning. Even if an entrepreneur does not feel that they can afford hiring an accountant that does business planning, how impactful it could be for their business and increase their chances of succeeding can often be worth what they pay.

If they hire a single person Edmonton accountant, entrepreneurs may end up with not being able to get the business planning services that they need to succeed. The reason is there so much administrative work that is necessary in accounting firm, that solo accountants often get so busy doing the filing, bookkeeping, correspondence out of the business that they typically run out of time to do comprehensive business plans or tax plans for their clients. Therefore, if entrepreneurs truly wants an accountant that can do business plans, and do them well and effectively, they should understand that there best bet might be to go with a larger accounting firm that has several accountants on staff. That way, they will get the services they need, without worry that they are going to become too busy. Even if they are too busy, being at a multi-accountant firm means that they should find someone else to help with the important tasks.

One of the ways that multi-person Edmonton accountant firms are able to ensure that they have enough people do the work, is by hiring accounting students. These students would have already completed their four-year accounting degree, but need to spend three years working with a tenured chartered professional accountant in order to earn their designation. These students allow accounting firms to do the work that is necessary like filing and bookkeeping, while the tenured chartered professional accountants are able to work on the business plans and tax plans for entrepreneurs. By hiring a larger accounting firm, business owners can be sure that they are going to end up getting the services the right to help them succeed in business.

Several things for entrepreneurs to take into consideration when hiring an Edmonton accountant, is that they should hire one that is large enough to be able to handle all of the services that a business owner is looking for. Business planning, tax planning, and consulting are very important tasks that entrepreneurs can use to grow their business as long as they have the right accountant for them.

Edmonton Accountant | Should Entrepreneurs Hire One Person Accounting Firms

Industry Canada says that 50% of all entrepreneurs will fail within the first five years, however the right to Edmonton accountant can help entrepreneurs avoid that fate through great business planning and tax planning. The failure rate with businesses is so high, that if entrepreneurs can make a plan to avoid the most common reasons for business failure, then they can exponentially increase their chances of succeeding. Therefore, choosing the right accountant to work with is an extremely important task. Many entrepreneurs make the mistake of thinking that they can save money on an accountant by hiring the least expensive accountant they can find, they will be able to get the accounting services that they need and save money. However, and expensive accountants do not typically do business plans or tax plans. Entrepreneurs should understand that hiring the best accountant they can, will end up saving them far more money than they will ever spend an accountant in reduced taxes and business growth.

If entrepreneurs truly want to keep their costs down, they should hire a multi-person Edmonton accountant firm. The reason for that is because multi-accountant teams will be large enough to be able to hire students to work in their firm. Students are extremely important, because they are able to be hired at a lower rate than tenured chartered professional accountants. Students need three years of experience after they complete their four-year degree, and since they are not technically designated accountants yet, they can be much cheaper to hire then full accountants, and accounting firms pass that savings on to entrepreneurs. If accounting firms were to charge the full rate for tenured accountants to work on every single aspect of the accounting duties including filing and bookkeeping, the final cost would be so overwhelmingly high, that it would be unattainable for most small businesses. Therefore, when choosing and accounting firm, entrepreneurs should choose ones that are large enough to be able to hire students so that they can save a significant amount of money on their accounting fees. If they hire a single person accounting firm for example, they may end up with a large accounting bill, and without going with any of those additional services like business or tax planning that could significantly help an entrepreneur.

Another reason why a multiperson accounting firm is beneficial to entrepreneurs, is that the fact that there is many accountants means that they are going to be able to be efficient problem solvers. They are either going to have seen that entrepreneurs type of business before, or are more likely to have encountered what their problem already. Meaning they can more adequately problem solve and troubleshoot if a business owner is having problems. Even if they have not been able to encounter that problem before, the fact that there is many accountants to discuss the problem, means that they will be more likely to be able to solve whichever problem an entrepreneur hats.