Edmonton CPA | What To Know Before Starting A Business
Many entrepreneurs are extremely excited to get started on becoming business owners, that they do not stop to consider what the right steps are to take says Edmonton CPA. While it might not seem to matter if they should talk to a lawyer or an accountant first, or if they should avoid incorporating opening business bank accounts, these things definitely matter, and if entrepreneurs knew the first place is to start, they can ensure that there setting their business up properly from the beginning, which could maximize their chances of success.
There is many reasons why an entrepreneur should talk to a chartered professional accountant before they do anything else when they decide to open a business. Edmonton CPA says it might seem very self-serving to give entrepreneurs this advice, but the reason why entrepreneurs should talk to an accountant first, is ultimate because they can help them structure the taxes of their corporation correctly, and help them their business plan. When that entrepreneur decides to start a business, the first thing that they should start with is a business plan so they can understand the direction that they should be going as soon as they start. While not all chartered professional accountants are going to be able to do tax plans for entrepreneurs, finding one who does can help entrepreneurs start their business successfully.
When looking for an accountant that does business plans, entrepreneurs should be asking them if they can see a sample business plan that they have done for other businesses or even a template. Edmonton CPA says if they are not able to give a sample or a template, they probably do not do enough business plans in a year to make them be able to them efficiently. Entrepreneurs should be considering accounting firms that do a minimum of a hundred plans a year, in order to ensure that they are able to do them well.
Because of the high failure rate of entrepreneurs in Canada, with the failure rate being 50% after five years, business plans should be considered an extremely important way to make sure entrepreneurs are of waiting the reasons why businesses have failed in the past. Running out of money, not being able to find the right customers and not having the right team are the three biggest reasons. By creating a business plan that addresses those reasons, a business owner owner can ensure that their business is being set up properly to avoid the most common reasons for failure.
By finding the right Edmonton CPA who can help entrepreneurs plan their business correctly from the beginning, entrepreneurs will be able to have peace of mind that they are starting their business correctly, and with plans in place to help them navigate through the challenges that entrepreneurs face in Canada. In addition to great planning, a great chartered professional accountant will help entrepreneurs plan the taxes in their business to help them efficiently avoid paying more taxes then that they absolutely need to.
Entrepreneurs who are starting a business for the first time, often lack resources in knowing what the first steps they need to take say Edmonton CPA. Therefore, entrepreneurs can significantly help their business before they even started, if they are able to meet with a chartered professional accountant is one of their first steps, the will be able to know what they should do in order to set their business up for success from the beginning.
Entrepreneurs should understand what might happen to their business if they decide to incorporate before they talk to an accountant. While it might seem straightforward and thing that does not require a lot of planning, if entrepreneurs incorporate as their first step, they put their business at risk of not having the right tax planning in place. Corporations need to have specific aspects in order to handle the business’s finances in a tax-efficient way says Edmonton CPA. Therefore if entrepreneurs incorporate their business before speaking to an accountant on what the best tax structure needs to be in their corporation, they could be forcing their business to pay significantly higher taxes than they might otherwise.
Because the tax structure needs to be included in the articles of incorporation, and a good lawyer is going to tell a business owner to talk to accountant before they incorporate it. However since they might not hire a lawyer that knows this, entrepreneurs should understand that the best order of operations for the should be to talk to a chartered professional accountant who comes up with the best tax instructions possible, the entrepreneur takes the tax instructions to a lawyer who sets up the corporation. Since one of the biggest reasons for incorporating a business is to have efficient tax strategies, they should be one of the first steps entrepreneurs take.
Another step that entrepreneurs often take as their first steps before talking to a chartered professional accountant is setting up their insurance or their bank accounts first. Emma ten CPA says that this might seem like an easy first step that entrepreneurs can take, however doing that before they decided if they should incorporate or not would make them set those accounts up in the wrong name. While it is not a huge problem, it can double the amount of work for entrepreneurs that they have to either change the name on those accounts or cancel them and set them up again.
Starting a business can be an extremely exciting time for entrepreneurs, but also entrepreneurs need to understand how serious it is to set a business up for success in order to avoid the high failure rate of entrepreneurs in Canada. By consulting and Edmonton CPA before they start, they will be able to find the right for steps they need to take, and what will be required in order to set up their corporation properly the first time, to maximize their chances of succeeding in business.