Edmonton CPA | Starting A Business Properly
While there is no absolute proper way to start a business, Edmonton CPA says there are things that entrepreneurs can do to ensure their business is set up for success from the beginning. The reason why this is important is because half of all Canadian entrepreneurs fail in business before their fifth year. There are three main reasons why entrepreneurs say their business failed in five years, they ran out of money, they were unable to attract enough customers, or they did not have the right staff. Business owners can start their business having the right corporate structure, tax plan, and business plan if they talk to a chartered professional accountant for doing anything else to start their business. By doing this, entrepreneurs can set their business up to avoid these main reasons for business failure.
Because setting up a business plan can increase the chances of success for entrepreneurs by 50%, entrepreneurs need to find an Edmonton CPA who is going to be able to help them with a business plan. Edmonton and CPA says that not all chartered professional accountants are going to be able to do business plans, that entrepreneurs should be able to find an accountant that not only can do them but can do them well. The reason why it is a little bit difficult to find is that it is not and more convenient service that accountants typically offer. However, if entrepreneurs are able to find an accountant that can do business planning, they will be able to create a plan that meshes well with their efficient tax planning the accountant will create for them, so that they can set their business up for success, grow their business, and avoid running out of money.
In addition to creating a business plan, entrepreneurs should also ensure they have the most efficient tax plan as well. Edmonton and CPA says that by having a meeting with their Edmonton CPA before they incorporate, can allow the accountant to builds the right tax structure into the articles of incorporation. This way, business owners can be set up to pay the minimal amount of taxes possible.
In order for business owners to find the right chartered professional accountant who will do a business plan, and structure their tax before the corporation, business owners should understand that it should not cost them anything to happen initial consultation with an accountant. Because entrepreneurs need to be be deciding if this Edmonton and CPA is the best fit for their business, so entrepreneurs need to make most use of that meeting as possible.
By choosing the right Edmonton CPA for their business, entrepreneurs can ensure that they are set up to pay minimal taxes, and have the best business plan possible in order to set their business up for success to not only avoid running out of money, not be able to find the right customers and not having the right employees but understanding that they will be 50% more likely to grow their revenue simply by having a business plan. By setting their business up for success from the beginning, entrepreneurs are getting themselves in their new business the best chance at succeeding
There are a lot of things that entrepreneurs need to consider when starting their very first business according to Edmonton CPA. But likely, they can take up most of those things into consideration by working with a chartered professional accountant before they do anything else in their business. The reason for this, is because the right accountant will be able to help them a business plan, tax plan and structure their business properly. By doing this before they take any other steps in business, business owners can set their business up properly which can help them maximize their chances of success.
Another thing that Edmonton CPA is going to be will help entrepreneurs with, is determining the business structure they need to have. While many entrepreneurs believe that they have to incorporate in order to own business, that is not true and there is the decision between incorporating or owning a proprietorship or. There is many differences between the two, and an accountant will be able to advise a business owner on the differences between the two so that they can make the decision that is best for them.
The biggest reason why entrepreneurs may choose to incorporate instead of only a proprietorship is the limited liability that incorporating gives a business owner. When a business owner is operating a proprietorship, they run the risk of being sued personally. If an entrepreneur has many personal assets including a family home, they may choose to incorporate simply to avoid the risk of being sued personally. Although incorporating does not eliminate the risk of being sued completely, it reduces it a significant amount.
Another reason why an entrepreneur may choose to incorporate instead of owning a proprietorship is in order to avoid paying more taxes. Because proprietors must claim all business activity on their personal taxes, the highest tax rate in Alberta personally is currently at 48%. The small business tax rate is only at 11%. Entrepreneurs can save up to 37% if they choose to incorporate it. That might not be enough of reason to incorporate, but Edmonton and CPA will be able to advise their clients that if they own a proprietorship, it ends up costing them more money when they hit fifty thousand dollars of profit in the air.
Regardless of what business structure an entrepreneur goes with, this Edmonton and CPA will be able to help an entrepreneur figure out best tax planning, business plans, and answer questions like do they need to register for GST and how to they do that? By finding out all of the right information ahead of time, can help entrepreneurs way to taking steps that could cost them time and money in their business. Also, hiring Edmonton CPA in their business can help them ensure they have the right information in their business.