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

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Outsourced Accounting Services | Checking Out Incorporating Myths?

Outsourced accounting services | business incorporating myths

Business owners believe mistakenly that incorporating their business will be too much work says outsourced accounting services. Therefore they operate as sole proprietorships and then miss out on the benefits of incorporating. As Confucius said life is really simple but we insist on making it complicated. Business owners donít need to make a simple process complicated, but they often believe that not only are they too small to incorporate, but it will force them to change their accounting and bookkeeping practices, but itís too much work, time-consuming and unnecessary. As Confucius said it really is easy, and the benefits business owners can see are too great to ignore. In this article we will be discussing common myths business owners believe when it comes to incorporation.

The first myth is business owners believe it takes a long process to incorporate says outsourced accounting services. In fact this process is very fast and very easy. Often in corporations can be done in a single day with one appointment to your accountant. There is nothing to prepare when the meeting with your accountant, all thatís needed is yourself and your businesses trade name. Business owners should know how easy it is, which might make them more apt to do this within their business.

The second myth is businesses will need to change their bookkeeping, and will need to learn new accounting software just because they incorporated. There is nothing true about the statement says outsourced accounting services. Whatever the business was doing before they incorporated for bookkeeping and accounting is all they need to continue to do. The only exception to this rule is if businesses were not doing any bookkeeping or accounting. So business owners can rest easy, knowing that they can continue operating their business as they always have once they incorporate.

The third myth about incorporation that businesses believe is that making tax payments becomes difficult. Itís easy to see why business owners make this assumption says outsourced accounting services, because they go from having one personal tax account to having a federal tax account, a provincial tax account, as well as a GST tax account and more. This might seem daunting to business owners, however this just sounds more complicated than it really is. Your accountant can schedule all of these payments and to all of the various accounts through postdated checks once a year. Once this is set up, business owners only need to operate their business as though nothing has changed, essentially because nothing really has.

By eliminating these common myths about incorporation, business owners can be armed with knowledge and make decisions that are best for their business, based on fact instead of fiction. Business owners should know all of the facts when it comes to making business decisions says outsourced accounting services. Because a business that makes decisions based on assumptions isnít making the best decisions for their business that they could be making. Incorporating your business is a huge way to affect huge positive changes within a business and all business owners need to be aware of them.

Outsourced accounting services | business incorporating myths

Only 11% of business owners seek professional help when they need it says Intuit, the makers of QuickBooks; this statistic is very eye-opening says outsourced accounting services. With such a small percentage of business owners who get help when they need it, leaves many entrepreneurs making business decisions based on assumptions and myth. Many business owners believe several myths about incorporation as well. Such as incorporating their business will be too much work, they need to have a certain number of employees to incorporate, they need to make a certain amount of money to incorporate and therefore they miss out on the opportunities that incorporating their business can give them. This article continues to discuss the common myths business owners believe about incorporating businesses.

The first myth being debunked in this article is that business owners believe that any person can get their own WCB coverage. This is actually not true. WCB primarily ensures the prime contractor in the business. If an entrepreneur does not have an incorporated business, WCB may not see them as a prime contractor. WCB can tell them that they should be able to get coverage from the contractor on their job site, but this isnít always the case. Contractor on a job site make kick off an entrepreneur for not having their own WCB coverage. This can be devastating to small business owners because they need to be able to accept all jobs, and being kicked of the site and not be able to complete it can be financially devastating. Business owners can easily avoid this problem by incorporating their business and having WCB assigned them a number.

The next myth being dispelled in this article is if businesses are not incorporated, that cannot prevent companies hiring them. This is again also false and the reason for that is many businesses look at contractors who are not incorporated as not legitimate businesses. While entrepreneurs who do not incorporated still they run very legitimate businesses, it ís often seen as a step that only serious business owners take. Entrepreneurs can risk looking like a fly-by-night organization if they donít incorporate. Another reason why companies may not hire businesses who are not incorporated is because there coverage may require them to consider any contractor working for them that is not incorporated, to be considered their employee without Outsourced Accounting Services.

This actually increases their own risk, and may not be a risk they are interested in taking. Therefore they may only decide to hire contractors who are incorporated. Small business owners are not always in the position of being able to miss out on jobs, so by incorporating, they can be assured that they will be able to land any job that comes their way to get top Outsourced Accounting Services!

These are just two myths that business owners believe and are the reason why businesses choose not to incorporate. By helping business owners know the truth, they can incorporate and start seeing the benefits immediately.