Edmonton CPA | Starting A Business On A Budget?
Starting their very first business can be extremely overwhelming to most entrepreneurs says Edmonton CPA, knowing the first step that they should be taking, may cause entrepreneurs to start their business off on the wrong foot. Before they do anything like get insurance, sign leases, open bank accounts or even incorporate, the best first place for entrepreneurs to start is talking to a chartered professional accountant. They will be able to answer all the questions that an entrepreneur has about starting a business, and help them figure out the best first steps. Business owners may think that talking to their lawyer is a great first step, and while talking to a lawyer early on is not a bad idea, good lawyers are going to ask entrepreneurs to see their accountant first.
The reason why entrepreneurs should talk to and Edmonton and CPA before their lawyer is because the lawyer is going to help a business owner out after they have created their corporate structure. While lawyers can technically help to incorporate a business, the tax structure of that corporation need to be written directly into the articles of incorporation. Therefore, talking to an accountant first to figure out what that tax structure looks like before they incorporate is necessary. If they decide to change the tax structure after the fact, they will not be able to do it without shutting down that corporation and opening a new one. Minimizing taxes is an extremely important aspect of business ownership, therefore it should be one of the very first things that entrepreneurs do in their business.
In order to find the right Edmonton CPA for their business, entrepreneurs should know what to look for. The first thing they should look for is an accountant that will offer a free consultation. Some CPAs do charge an hourly rate for the initial consultation, but because this is also a time for the accountant to be figuring out if this business owner is a good fit for them, it is also time for an entrepreneur to decide if this is the right accountant for them. Look for chartered professional accountants that offers a free consultation, so that business owners can get a feel for who they are and how they do business while answering all of their questions about the best first steps to take.
Another thing that entrepreneurs should be looking for in their accountant is looking for one that has public practice experience. These are accountants that experience working with any different types of businesses including small businesses and startups. The skill sets it takes to advise many small businesses instead of one large one can make the difference to getting the right to business advice for them.
It is important that entrepreneurs not only talk to the right people first but how to put those right people is extremely important as well. By being able to set themselves up for success, entrepreneurs picking the right Edmonton CPA for their business can ensure that they are maximizing their chances of succeeding.
Starting a business has so many different pieces to it, that entrepreneurs often do not know what the first steps should be says Edmonton CPA. Therefore, before an entrepreneur does anything, the best thing that they can do is get advice. Speaking to chartered professional accountants for an initial consultation should not cost entrepreneurs any money, and it will be a good place for them to find out all the information they need when looking to start a business. They should ensure that they have all of their questions written down, I find out as much information as possible. By knowing which steps to take first can help business owners start their business off on the right foot. There is such a high failure rate of businesses in Canada, 15% fail in the first year, 30% fail in the second year, and 50% have failed by year five. Because of the high failure rate, entrepreneurs should be extremely careful in how they start their business in order to maximize their chances of success.
One of the first things that an accountant is going to help them decide, is should they incorporate or not. Edmonton CPA says while most businesses decide to incorporate, by finding out all of the facts of what the benefits of incorporating are, what the costs are, and the difference between the two can help an entrepreneur make the right decision. If they decide that they want to incorporate, and chartered professional accountant is going to want to help them set up the tax structure properly so that it can be built directly into the articles of incorporation. This is extremely important to do before they incorporate, because if they incorporate with an inefficient tax structure, they can be locking their business into a structure that has them paying more taxes than they should.
Even if an entrepreneur decides not to incorporate, they should still get advice from a chartered professional accountants. Helping them create a business plan is a great first step in ensuring their setting their business up directly in order to minimize all of the reasons why business owners have failed in business. Running out of money, not being able to find the right customers, and not having the right staff are all reasons why failed entrepreneurs in Canada say their businesses have not succeeded. By knowing those reasons ahead of time, and creating plans on not only how to avoid them, but what happens if they do happen in their business and how to overcome them. Statistics show that entrepreneurs actually have a business plan in their business are 50% more likely to grow their revenue. Therefore, creating a business plan should be an extremely important step that entrepreneurs take to ensure their chances of succeeding.
Edmonton CPA says that entrepreneur should be extremely aware of the first steps they need to take when starting a business, so that they set their business up for success, and can avoid common reasons for failure.