Starting a business is a scary proposition to even the bravest entrepreneurs. In the beginning you have to decide which type of business structure is right for you and understand the advantages and disadvantages of each. Once you’ve gone through the process of setting up the business there are things that you might need to do to maintain that business. We continue on with our six-part series about starting a business in Ontario with a look at the types of professionals you will want to include on your business management team.
How a Lawyer Can Help Your Small Business
A lawyer can be very helpful when first incorporating a corporation or cooperative, especially when putting together your articles of incorporation and other documents you’ll need in your corporate minute book. As your incorporated business operates, your lawyer can help review your annual resolutions and make sure that a new set of resolutions is properly filed in your minute book at each year-end.
A lawyer can also help create a business services agreement you might use that lays out the terms and conditions for how you will sell your products and services and manage any other agreements your business needs.
Lawyers can be helpful for unincorporated businesses, too. In a partnership, for example, a lawyer can help create a partnership agreement and again draw up a business services agreement or other contracts within your business.
How an Accountant Can Help Your Small Business
Regardless of what type of business organization you choose, an accountant can help by keeping your business in compliance with the CRA and providing financial planning and guidance. A good accountant will guide you to the best way to minimize the amount of taxes that you pay but keeping your business in full compliance while you do so.
An accountant will look at your combined business and personal financial picture – even if you’re incorporated – and direct you on the best way to get money out of your business while paying the least amount of personal and corporate tax. There are a number of ways you can get money out of your business, including regular salary, bonuses and dividends but which way is the best way depends on a myriad of things. An accountant will help you sort through and find the best way.
An accountant will also help with your business year-end filings, making adjusting journal entries to your books and filing your year-end with the CRA.
How a Bookkeeper Can Help Your Small Business
Even if you’re working with an accountant a bookkeeper plays a very important role in the startup and on-going operation of your business. The value offered by an accountant and a bookkeeper of very different – the accountant will create a financial strategy for your business and a bookkeeper will help you implement that strategy. Think of how an architect can design a house but a builder will go about building what the architect has designed – it’s much the same with an accountant and a bookkeeper.
A bookkeeper can help you run the day-to-day financial operations of your business, helping you create invoices for your customers and clients, entering any invoices you receive from your suppliers, making sure you get paid and pay on time and managing your inventory.
A bookkeeper will also help keep your business in compliance, making sure that you are collecting and paying HST where applicable and filing your HST returns and source deductions on time and correctly. A bookkeeper can help review and understand the financial performance of your business and can help prepare your business for year-end filing.
If you are starting a new business in Ontario, having a good professional management team will be immensely helpful for your business. Some of the key professionals you want to have on your team are a lawyer, an accountant and a bookkeeper – they each bring their own unique and valuable expertise and experience to your business.
Please check back for the conclusion of this six-part series by looking at things you need to do to keep your new business in compliance with the CRA.
Simply Bookkeeping1 provides professional bookkeeping services for freelancers, solopreneurs and owners of unincorporated and incorporated businesses. We customize our services based on your needs – we only see some of our clients a few hours a month but others we see on a more regular basis. Our services are reasonably priced and we tightly track the amount of time we spend working for you so you only pay for the services you get.
To learn more about us, please visit our website at www.simplybookkeeping1.com or contact Michele Hyde by phone at (647) 668 – 9363 or by email at firstname.lastname@example.org.
Have Your Say
If you’re thinking of starting a new business and considering which professionals to engage, we’d love to hear from you. Tell us what’s on your mind and share your thoughts! Also, please share this article using the social media share buttons – chances are there are others out there going through the same thought process!