When to Hire A Business Accountant: The Top Seven Signs for Canadian Businesses

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Are you a typical small business owner or entrepreneur in Canada? We're talking about the ones that run the business while juggling all of the tasks that keep the business running. Customer service, sales, marketing, accounting - the list goes on and you're the only one checking things off!

As much as you'd like to do everything yourself, there are certain tasks that you can - and should - leave to the professionals. One such task is listed above: accounting, and with it, bookkeeping and taxes. While it might seem like an unnecessary expense, hiring an expert business accountant can actually save you time, money and stress in the long run. In this article, we'll explore the signs that indicate it's time to consider adding a business accountant to your one-person show.

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1. Bookkeeping Is Taking You Away from Other Tasks

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According to a recent survey conducted by Quickbooks, Canadian small businesses say their accounting professionals saved them, on average, 97 days a year. As a business owner, your time is incredibly valuable. Think of what you could accomplish with an extra 97 days a year!

If you're spending hours every week trying to balance your books and make sense of your financial statements, that's time you're not spending on developing your products, marketing your business or serving your customers.

A business accountant can take care of your bookkeeping for you, freeing up your time so you can focus on growing your business and doing what you do best.

If you still can’t decide between DIY or professional bookkeeping, check out our other blog post here, where we compare both options for you.

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2. You've Recently Experienced Rapid Growth

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Growth is always a good thing, but it can also come with its own set of challenges. If your business has recently expanded, you may find yourself dealing with more complex financial issues. For instance, you might be hiring more staff, investing in new equipment or dealing with a larger volume of sales. A business accountant can help you navigate these challenges, ensuring your finances stay healthy as your business grows.

We had a client who doubled their customer base in just a few months and they needed help managing their payroll and taxes efficiently. This is a common scenario where a business accountant's expertise can make a substantial difference.

If you’re on the fence about outsourcing your payroll, check out this blog post.

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3. Your Revenue is Increasing, But Your Profit Isn't

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If you're making more sales but your profits aren't increasing, this could be a sign that there are inefficiencies in your business. A business accountant can help you identify where you're losing money and suggest strategies for increasing your profit margins. They can provide a detailed financial analysis and recommend cost-cutting measures or revenue-boosting strategies.

For example, a client with a retail business was experiencing an increase in sales, particularly in a specific product category. However, they couldn't figure out why their profit margins were not improving as expected.

After a detailed financial analysis, our business accountant found that the cost of goods sold (COGS) for the popular product category was higher than anticipated due to inefficiencies in the supply chain. We recommended negotiating better supplier contracts, streamlining inventory management and optimizing pricing strategies.

By implementing these suggestions, the business reduced their COGS, which significantly increased their profit margins on the popular product category. As a result, the business was able to maintain its increasing revenue while also boosting profitability.

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4. You're Planning to Expand into a Different Province/State

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Expanding your business to a new location is a major decision that comes with a host of financial implications. You'll need to understand the tax laws in your new location, as well as how to manage the financial aspects of setting up a new office or store. An accountant can provide valuable guidance during this process, helping you make informed decisions to avoid potential pitfalls.

In one such case, a Canadian e-commerce client was expanding to the U.S. Our business accountant was able to help with U.S. sales tax, currency exchange, customs compliance, cross-border finance and sales tax collection to ensure a smooth transition into the American market.

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5. You're Planning to Make a Large Purchase

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Whether you're planning to invest in new equipment, buy a building or make another large purchase for your business, it's important to understand the financial implications. A business accountant can help you assess the potential Return on Investment (ROI) of your purchase, as well as how it will impact your cash flow and tax situation. They can create detailed financial projections and assist with securing the necessary financing if needed.

For example, our business accountant helped a manufacturing company that was considering a significant investment in a new production facility. They assessed the financial viability, created detailed projections, addressed tax implications, assisted with financing and monitored the investment's performance, ensuring the company's financial goals were met.

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6. Your Investors Need Professional Financial Reporting

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If you have investors, they'll likely want to see regular, professional financial reports. An accountant can prepare these reports for you, ensuring they're accurate and comply with all relevant financial regulations. This not only keeps your investors informed but also instills confidence in your business's financial management.

in one example, a Canadian construction company aiming to expand and attract investors hired our team to help. We organized financial data, created accurate reports and ensured compliance with Canadian financial regulations. This transparency attracted investors and secured funding for the company's growth and projects.

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7. You're Facing an Audit

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Being audited can be a stressful experience. An accountant can help you navigate the process, making sure you have all the necessary documentation and helping you understand your rights and responsibilities. They can act as a liaison between your business and the auditing authorities, ensuring a smoother and more efficient audit process.

For example, our team helped a small business owner during a tax audit by discovering and correcting a tax return error made by the business owner. We organized the necessary documents and ensured a smoother audit process, saving the business owner from potential penalties and additional stress.

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In conclusion, recognizing the signs that indicate the need for a business accountant is essential for your company's financial well-being and prosperity. Rather than viewing it as an unnecessary expense, consider hiring a business accountant as a strategic investment that can pave the way for your business's financial health and overall success.

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Ready to take the next step in securing your business's financial success? Don't wait for financial challenges to become overwhelming; take proactive steps and secure the expertise of a business accountant to steer your business toward a brighter, more profitable future. Contact us today and discover how our business accountants can help you achieve your financial goals. Your business's success is just a click away.

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