Edmonton CPA | What Do Business Startups Need To Know
Starting a brand-new business can be an extremely exciting and extremely confusing time says Edmonton CPA. While most entrepreneurs start their new business endeavour with the best of intentions, intentions do not necessarily ensure success. Entrepreneurs should understand that 15% of Canadian businesses fail in their first year, 30% fail in their second, and by the fifth year in business, half of all entrepreneurs in Canada have failed. Reasons for the failure include running out of money, nothing able to find enough customers, and not having the right staff. The biggest thing that entrepreneurs should understand in all of this, is that if there able to start their business with these issues in mind, so that they are prepared to on what do to avoid them and overcome them, they can significantly increase their chances of success.
The first things that they need to do in order to ensure that they are planning to overcome common reasons for business failure, is to find the right to Edmonton and CPA to work with. The reason this is so important is that business owners should understand all of the various things that an accountant can do for their business. Not only do they do the tax filing and year ends for entrepreneurs, but they also will do tax planning which can help entrepreneurs pay minimal amounts of tax, they also create business plans, that can help entrepreneurs not only avoid reasons for business failure, but help their business be set up for success and create a plan for all the steps an entrepreneur needs to take in order to be successful.
In order to find the right Edmonton CPA to work with, business owners should know what to look for when they are having the initial consultation with them. The first thing that they should look for is accountants that have practice experience. This means that these accountants have spent their career working with small businesses and new entrepreneurs. They understand the challenges that these businesses face, and the different ways that they can help them succeed. Helping entrepreneurs is an extremely different mindset, so entrepreneurs should be finding accountants that have the experience doing that.
When looking for an Edmonton CPA, business owners should also understand that while many accountants do business plans, it is not the most conventional service they offer, so they need to be looking for chartered professional accountants that do business plans. When they find accountants that do them, they need to be certain that they do them well and efficiently. Asking to see a sample of the plan or template that they use can help entrepreneurs determine if they do plans often enough, and if they do them well. Being able to be confident that they can help them use these plans to succeed is extremely important.
Finding the right accountant to work with entrepreneurs in their business as early as possible is extremely important first step that can help entrepreneurs overcome common reasons for business failure in Canada.
When entrepreneurs are making the decision to start their very first business, Edmonton CPA says they often try to save money by doing things themselves, and can often end up costing themselves more money or wasting time. By knowing what to do first, can help entrepreneurs not just set their business up correctly, but set their business up in such a way that can help them succeed. With such a high failure rate of entrepreneurs in Canada, setting themselves up for success is something that entrepreneurs should put a large influence on.
One of the first things that entrepreneurs do when they decide to start their own business, is to do the incorporation themselves. There often extremely proud that they were able to achieve that, and often believe that they were able to save a lot of money to do that. However, Edmonton CPA says that that can often create problems for entrepreneurs, because the tax structure that accountants use to handle their finances actually needs to be built directly into the articles of incorporation. Therefore, by incorporating without speaking to an accountant first, can often cause entrepreneurs to have an inefficient tax structure in their business. That means they might end up paying more taxes then they should in their business. If entrepreneurs have gone ahead and created a corporation without advice from an accountant first, they will usually end up shutting that corporation down and having to pay to get a new one set up properly.
Something else that entrepreneurs often do before they talk to their Edmonton and CPA is set up their insurance and bank accounts. While this might seem like a harmless way to get started, it actually can create more problems because if an accountant has determined with the entrepreneur that their business structure is a corporation, all of those accounts that they set up ahead of time will be useless because there in the wrong name. This will either mean an entrepreneur has to go back and switch the name on those accounts which could be time-consuming, or frustrating, it also might mean that they have to cancel all of those accounts and set them up again. Forcing entrepreneurs to do twice as much work so business owners should actually talk to their accountant first before they take any steps.
Entrepreneurs should understand that while they may take these first steps because there trying to save money, it actually does not cost anything in order to have an initial consultation with an Edmonton CPA. That way, entrepreneurs can get the advice that they need in order to know what they need to do to set up their business correctly, and have all of their questions answered without paying a penny. If they are comfortable with that accountant, they can then choose to pay them moving forward to help them set their business up correctly so that they can be successful.