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Taxes, Accounting, and Bookkeeping for Your Small Business: How to Find the Right Fit

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Taxes, Accounting, and Bookkeeping for Your Small Business: How to Find the Right Fit

If you run a business in Canada, you absolutely need to know the ins and outs of tax assistants, accountants and bookkeepers. Learn more.

If you run a business in Canada, you absolutely need to know the ins and outs of tax assistants, accountants, and bookkeepers. As a business owner, it’s essential that you have a thorough understanding of what each type of pro does. This not only ensures you’re in line with all Canadian taxes laws and regulations, but also ensures you get expert help tailored exactly to your company’s needs.

So, let’s jump right in.

In This Article:

What Are Tax Assistants?

Tax assistants are your friendly tax experts. They know their way around the Canadian tax system and have all the answers you need when it comes to filing those often confusing forms. If you’re a small business with a straightforward tax situation, they can be an invaluable partner in ensuring that everything is taken care of properly, so there won’t be any surprises come April 15th.

The benefits of hiring a tax assistant include:

  • Save time and money. Preparing taxes can be a really tiring and time-consuming job. The average person spends 20 or more hours poring over their returns. That’s close to 2 full days of hard work. Tax professionals understand all the rules and regulations, so they know how best to prepare your return for maximum refund eligibility while keeping compliance in check with government standards – no wonder people hire them year-on-year. They can also help find deductions and credits, which could mean even greater savings come tax season.
  • Prevent expensive mistakes. An overwhelming percentage of taxpayers made a mistake when doing their own taxes. Incorrectly filing can cost you time and money. You can avoid unnecessary risks by leaving it in the hands of experienced pros who’ll make sure everything is done right so that both your refund and legal standing are safe.
  • Get peace of mind. With professional tax prep, the hassle is taken out of filing, so there’s plenty of space to focus on other aspects of your business.
Taxes Accounting and Bookkeeping

What is Accounting?

Accounting is a powerhouse field that covers much more than bookkeeping, financial reporting, and tax prep. Skilled accountants provide valuable advisement like in-depth insights into financial planning and analysis for businesses, along with budgeting help and presentation of official figures. They don’t just crunch numbers, They also offer an abundance of other services such as consulting on finances, generating reports about money matters, and offering sound guidance to maximize business success.

Choosing an accountant comes with many benefits:

  • Reduce tax liability. Staying on top of taxes can be a daunting task, but the right accountant can help. They understand your business needs and will save you money while keeping finances organized all year long so that there are no surprises come tax season.
  • Grow your business. As your business grows, so do its financial needs. You can make the transition easy and efficient with help from an accountant.  They can handle all the accounting and budgeting details that come along with expansion, paving a clear path for sustainable growth.
  • Get access to expert business advice. When you outsource or hire an accountant in-house, you’re getting access to more than just day-to-day finance help. With a trusted financial advisor by your side, you’ll get the added advantage of professional connections and specialized guidance that can take your business up a notch.

What Is Bookkeeping? 

Being a bookkeeper requires tracking and managing financial records, from sales to payments. It’s the job of these professionals to make sure all money-related transactions are accurately entered in ledgers for easy referencing later on. Plus, bank statements must be reconciled too. The benefit? Bookkeepers provide an organized, reliable foundation that brings clarity when it comes time for reporting purposes.

The main benefits of hiring a bookkeeper include:

  • Get help with accurate budgeting. A solid budget is the foundation for any successful business. Good bookkeeping makes it easy to track income and expenses, so you can make well-informed decisions about your financial resources. Plus, having these records in order means no more guesswork when dealing with a budget. Think of it as creating a road map toward growth.
  • Maintain organized records. Cut down on the last-minute stress and keep your business running smoothly. Bookkeeping regularly can help you stay organized. So when it comes time to find a crucial piece of information for that deadline, no errors or missed deadlines occur. Plus, over time, keeping up with bookkeeping will make retrieving important info much easier.
  • Get insights into your business targets. Without the data to back it up, shooting for business growth can seem like a far-off dream. But having accurate financial records will help you stay on target and reach those objectives more quickly. Keeping track of your numbers not only prevents disappointment in missed goals, it also gives you valuable insight into how best to grow your business.
tax assistant bookkeeping accounting entrepreneur

Which Is Better for Your Business?

So, how do you choose whether to use a tax assistant, an accountant, or a bookkeeper?

Tax assistants help you file taxes, while accountants and bookkeepers provide a wider range of financial expertise. Accountants can dive deep into complex analysis or planning to help manage your money, while bookkeeping is all about the nitty-gritty details that keep everything organized.

Let’s dive deeper.

Why You Might Choose a Tax Assistant

A tax assistant is ideal for small businesses that have straightforward tax situations. They can assist with tax preparation, filing, and resolving simple tax issues.

When it comes to taxes, having a professional’s help isn’t just convenient – it can also be incredibly valuable if an audit crops up. Sure, you may know your stuff, but the tax assistant has been there and done that when dealing with authorities on returns.

Why You Might Choose an Accountant

If your business is growing, and you need more comprehensive financial support, then it’s time to consider using an accountant. An accountant can provide financial planning, budgeting, financial reporting, and tax preparation services. They can also help you make informed business decisions by providing financial analysis and insight.

Working with an accountant is a great way to make sure your finances are in order and that you’re taking advantage of all available tax incentives. They can provide valuable advice on big financial decisions, like buying property or investing in business ventures, as well as advice on how best to minimize taxes owed at the end of the year. It’s really helpful having someone knowledgeable by your side when it comes time for crunching numbers.

Another advantage of working with an accountant is their expertise in financial statements. Financial statements provide a snapshot of your financial situation, and they are an important tool for making informed business decisions. An accountant can help you prepare accurate financial statements, interpret the results, and provide advice on how to improve your financial performance.

Why You Might Choose a Bookkeeper

If you’re looking for someone to handle the day-to-day financial transactions of your business, a bookkeeper is a good choice. Bookkeepers can help you keep your financial records up-to-date, reconcile bank statements, and ensure that transactions are recorded properly. They provide the foundation for financial reporting and help ensure that financial information is accurate.

Bookkeeping is just as important as tax planning and financial statement preparation. Maintaining accurate and up-to-date records of your financial transactions is essential for staying compliant with tax laws and for making informed financial decisions. Bookkeepers make sure your financial records are organized and complete, which makes the tax preparation process much easier and less time-consuming.

Things to Consider When Choosing Between a Tax Assistant, Accountant, and Bookkeeper

So, what should you consider when choosing between a tax assistant, accountant, and bookkeeper?

  • Budget: The first thing to consider is your budget. Tax assistants are typically the most affordable option, while accountants and bookkeepers can be more expensive. But it’s important to remember that these more comprehensive services cost more because they provide more value in the long run. 
  • The complexity of your business: If your taxes and financial situation is simple enough that a tax assistant can handle them, great. But if the paperwork behind those numbers gets complicated, an accountant might be more helpful for strategic guidance and number crunching down the line.
  • Business goals: Consider your current and future goals when choosing between a tax assistant, accountant or bookkeeper. Accountants are great problem-solvers that give valuable insights and recommendations tailored specifically to reach your goals. On the other hand,  a tax assistant or bookkeeper might only provide basic financial support.

As a small business owner or solopreneur, having reliable support for your accounting and bookkeeping needs is essential to the success of your venture. Ultimately, it comes down to what you need: an accountant can offer more comprehensive advice on managing finances, while a bookkeeper will provide help with day-to-day record-keeping tasks at a lower cost.

Or, if taxes are becoming overwhelming, then hiring a tax assistant may be the best option. No matter which route you take, three professionals have invaluable contributions when creating long-term financial goals for any endeavour.

Whether you need tax assistance, accounting or bookkeeping our partners at Strata Accounting can steer you in the right direction.