Most 5 star CPA Google reviews in Canada
Helping Canadian businesses beat the odds!
Business owners can significantly impact how much wealth they can accumulate for their future if they are able to create efficient tax strategies using a part-time CFO. When business owners come to the decision of how they need to pay themselves in their business, whether itís taking a salary, taking dividends or taking a combination of the two they donít often realize that this decision can impact in the rest of their business. Since the decision on what they should take their business ends up being based on taxes, business owners need to realize that this is how they create attack strategy in their business that can help save them from paying significant amount of taxes.
This is a complex issue that only professionals who are well-versed in this area can help decide. Part-time CFO says the single most common question that they get is about physics act issue. Anyone who is able to answer this question quickly, or without much thought clearly doesnít understand the subject very well. In order to make the best determination about how business owners should draw money out of their business, the accountant is working on this issue must completely understand not only the business, but the business ownerís circumstances as well. Several factors must be taken into consideration not only with the business, but with the business owner themselves, including how much other income the business owner takes an, and how to they receive it, does a business owner there have a spouse and do they earn an income? Things from child care expenses to divorce and separation agreements all factor in to answering this question.
When making the decision on which part-time CFO they want to work, entrepreneurs should avoid trying to hire the most inexpensive professional they can find. What they often save in accounting services, they end up paying far more in inefficient tax strategies. Itís not unusual to find out that a business owner paying taxes inefficiently is spending thousands of dollars a year or more than what they would have spent on a good accountant in the first place.
If business owners want to check what theyíve been paying, in order to determine if theyíve been getting a good mix or not, they should look at their current financial statement, or their previous years tax return to see what the breakout of dividends and salary is in their business. A warning sign that not enough thought has gone into this would be if the business owner sees that they are taking either hundred percent in dividends or hundred percent and salary.
The finding the right accountants to work with, who is going to ask all the right questions and completely understand the situation business owners can create a great text strategy not only will a great text strategy help entrepreneurs increase cash flow in their business, but it will allow them to save money more efficiently that they can use that towards accumulating wealth for their future.
What entrepreneurs have reached a point in their business where they are ready to start taking out income, they should ensure that they hire the right part-time CFO for the job. The reason for that is because help entrepreneurs take money out of their corporation is essentially tax strategy, and creating great strategy based on their particular needs and situation can allow them to save thousands of dollars every year. Thatís money they can utilize in their business to help increase cash flow, purchase assets, and money that they can save personally in order to put towards their investments and save for the future.
The reason why itís very important to hire the right part-time CFO to help entrepreneurs with this decision, is because itís an extremely complex issue. Business owners who donít take enough time or consideration into this issue can discover that they end up paying far more in taxes than they could have. Some warning signs that this topic is not being handled carefully enough is if entrepreneurs are getting answers to questions very quickly, or if the person thatís currently helping them doesnít take enough time to understand the business, or the business owners individual circumstances.
If an entrepreneur has already been helped by a professional, and they want to ensure that they are doing a great job, they can often take a look at their financial statements to see what the breakout of their payment is. If itís in 100% dividends or hundred percent salary, then thatís often a sign that not enough thought has been put into the strategy. Often, entrepreneurs when they first started in business try to save money on accounting services. What entrepreneurs need to understand however is by choosing accounting services based on lowest price, means that they are at risk for getting for service, which could end up costing them thousands more in taxes than it wouldíve cost to hire a great accountant in the first place.
In order to hire the right part-time CFO for the job, business owners should consider the level of experience they have, accountants go through for years to get a degree and then an additional three years of articling and then start working in the industry. The Associates at Spurrell and Associates have developed a great process for helping entrepreneurs create efficient tax strategy in their business. The formalized process ensures that the business owners are able to give them as much information as possible about all the most important subjects. They then have a process dedicated to how they use those numbers efficiently to put together great tax strategies a fraction of the cost of typical accountants.
The hiring the right people for the job, entrepreneurs can have an efficient tax strategy that can help them accumulate wealth for their future as well as increase cash flow in their own business. This can be very impactful on a business owner and their corporation.
