Edmonton CPA | What Entrepreneurs Should Know Before Starting The Business
The decision to start a business is often an exciting but confusing time for many entrepreneurs says Edmonton CPA. There is more information than they may realize they need to know, therefore being able to get the right information before they make any decisions can be an extremely important step to letting their business up for success from the very beginning. There is many questions that entrepreneurs should be finding the answer to before they take any steps towards business ownership.
The first question entrepreneurs should know the answer to is when starting a business, should an entrepreneur first talk to? Edmonton CPA says the best place to start is to talk to an accountant. The reason why it is a good starting point is because it will help an entrepreneur determine things like the corporate structure that is most advantageous for them, creating an effective business plan that can help them not only secure financing, but set their business up to achieve success, and ensure that there ideas make fiscal sense.
The next question that entrepreneurs should know the answer to is what happens if an entrepreneur incorporates you are talking to Edmonton CPA? Many entrepreneurs are extremely excited to get started in their business and think that they can speed the process along if they incorporate on their own before talking to an accountant. Unfortunately, this can lead to problems later on down the road, because if they do not have an effective tax strategy built into the articles of incorporation, they may be locked in to a corporate structure that has them paying far more taxes than they should. Business owners can save time and money by holding off on incorporating in order to talk to their accountant.
The next question that entrepreneurs should know when starting a new business, is why should they talk to and Edmonton CPA before they talk to a lawyer? The answer to this question is because while a lawyer is going to be able to help an entrepreneur set up the corporation for their business, they will not know the right tax instructions to build into that corporation. Great lawyers who understand this, will request that the entrepreneurs talk to chartered professional accountants before coming back to see them. The accountant will be able to ask entrepreneur questions like who all is involved in the business and what are their personal circumstances. Understanding this can help them create the tax instructions that should be built into the articles of incorporation.
By understanding the first steps to take when starting a business, entrepreneurs can be certain that they are setting their business up correctly, and with enough forethought to be able to not only avoid all of the reasons why businesses in Canada fail, but set their business up to see success. The only way that they can achieve this, is to hire the right professionals to work with, and following the plan.
If entrepreneurs are too excited to slow down and hire the right to Edmonton CPA in their business, they could miss important steps and have a significant problem in growing their business. Since half of all Canadian businesses end up failing before their fifth year in business, entrepreneurs should understand that getting the right start in their brand-new business endeavor can mean all the difference between running out of money and having to close their business, or seeing a wild amount of success in their endeavor.
By understanding the various questions that they need to ask in order to start their business often the right foot, entrepreneurs can be certain that they are paying the right things in order to create the best plan to succeed in business as possible. The first question that entrepreneurs should know, is do they need to incorporate in order to run a successful business? Edmonton CPA says that while there has many benefits to incorporating, there is no rules in place that say an entrepreneur need to incorporate their business. In order to determine what the best plan for their business should be, if entrepreneurs talk to Edmonton CPA, they can find out all of the various reasons why a business would incorporate and what the benefits are. After finding out both sides of the equation, regardless of what business structure business owner chooses to go with, the chartered professional accountant is going to be able to help them with the next steps of their business, whether it is creating a business plan for them, creating a tax plan or helping them plan efficiently.
The next question that entrepreneurs need to know in their business, is what happens if they decide to set up their bank accounts and insurance before having a consultation with Edmonton CPA? While it is not going to end in disaster for their business, it is another example of putting the cart before the horse, and doing things that will eventually have to be on that done in their business. Business owners who set a bank account before talking to their accountant might find out that their accountant has suggested that they incorporate. If they have their bank account set up before they incorporate, they may have to shut that bank account down in order to reopen it in a new name. This can cause additional time and money to be spent that is unnecessary. While it is not going to end in disaster for an entrepreneur, it is another example of why business owners should talk to their Edmonton CPA before making a decision in their business.
In order to hire the right Edmonton CPA for their business, business owners should understand that most chartered professional accountants are not going to charge for the initial consultation and that they should seek out an accountant that is willing to offer their advice for free. Since the accountant, as well as the entrepreneur, is going to be deciding if this is a relationship worthwhile, a business owner should seek out one that is not going to charge the initial consultation and ask all of their most important questions in order to get the right answer.