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E-Myth – “Why most small businesses don’t work & what to do about it”

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Outsourced Accounting Service | Want To Be Incorporated?

Outsourced accounting service | should you incorporate?

A favourite quote of outsourced accounting service is from Confucius that says life is really simple, but we insist on making it complicated. Nothing could be more true than businesses who are thinking about incorporating. They mistakenly believe that incorporating is too much work, is complicated, will force them to have more involved book keeping and will result in their year ends being more expensive and harder to do. None of these are actually true, business owners should get informed about not only the benefits of incorporating, but what it takes for their businesses to incorporated, and changes that means for them.

Business owners should consider several facts when they are deciding whether to incorporate or not. One of the most crucial aspects of incorporating says outsourced accounting service, is related to getting WCB coverage. If a businesses does not incorporate, they may not be able to get a WCB number. The reason for that is WCB only issues numbers for prime contractors. Businesses who donít incorporated may not get considered as a prime contractor. The reason for this is WCB usually considers if a business has a GST number as a defining factor on whether they get a number or not. A business that does not have a WCB number runs the risk of getting kicked off the job site for not having WCB coverage. For that reason alone, it may be in the business ownerís best interest to incorporate. It can be a detriment to the business to not be able to accept certain jobs because they donít have coverage.

Entrepreneurs believe the incorporation process is long and complicated as well, and this is not true. Most corporations take one business day, often being completed the very same day. The process might be slightly longer for professionals such as doctors or lawyers because the accountant needs to get a stamp of approval from that professionalís governing body which may take a week or two to get the stamp of approval. However, outsourced accounting service says the average contractor or small business owner does not need the stamp of approval and are usually done in the same day. With the process being that quick and that easy, business owners should not be scared away from the process.

Another reason entrepreneurs decide to not incorporate is because they believe there bookkeeping and accounting will become much more complicated than it did in the past. Some business owners think they will need accounting software just because they incorporated. Outsourced accounting services this is not true, once a business incorporates there bookkeeping and accounting will not change. If they didnít require accounting software before, they wonít need it now. This is a discussion best had with the companyís bookkeeper or accountant, and they are well-versed in incorporating businesses and can help business owners understand their accounting and bookkeeping needs.

There are a lot of misconceptions when it comes to incorporating, and by being properly informed, entrepreneurs can make the best decision for their business.

Outsourced accounting service | should you incorporate

Business owners often believe that incorporating is a hard process, and will greatly change their business says outsourced accounting service. However thatís not the case, and by learning about incorporating their business and why they may choose to do that, business owners can make the best decision for them, rather than making assumptions. Intuit, the makers of QuickBooks say that only 11% of business owners will seek professional help when they need it. Therefore business owners often struggle, making assumptions that incorporating their business wonít help them when in fact the opposite is true. Incorporating can help business owners stop struggling so hard.

Business owners think that filing their year-end will become much more difficult and complicated when they incorporate their business. The reason they think that is because they go from one personal tax account as a small business, to once they incorporates they will have a federal tax account, a provincial tax account, a GST account, and they can go from one account to four or five very quickly. Outsourced accounting service says business owners think that this will make things more complicated. However there accountant will be able to help them schedule all of those payments into the various different accounts they now have to the use of postdated checks once a year. With the accountant looking after those payments, the business owner can operate as normal as if nothing has changed, because nothing really has.

Business owners assume that year-end taxes will become much more complicated once they incorporate says outsourced accounting service. However itís really as easy as handing in 12 bank statements to their account. The business owner will get a corporate business account, a corporate credit card, which they really should have had as a unincorporated business anyway. Then they will submit 12 bank statements one for each month of the year to their accountant at the end of the year. Their accountant will then take care of their year end and filing for them. One of the benefits of doing it this way is owner will get some degree of audit protection, which is very valuable as well.

Incorporating a business is a quick and easy process that in most cases can be done within one business day, if not the very same business day. There is no reason why businesses should not be able to easily incorporate their business.

In conclusion, outsourced accounting service says incorporating is a quick process that doesnít really change anything significant in their business. The only thing that being incorporated really changes is that it helps businesses be more protected, save taxes, help business owners accumulate wealth and by assets in order to help grow their business. Thereís no reason why businesses should shy away from incorporating, the only reason why more businesses donít is there are a lot of misconceptions out there. By smashing these misconceptions, business owners can thrive in their business.