Chartered Accountant Toronto – Why Do You Need One?

If you’re a business owner, I strongly recommend that you hire a Chartered Accountant Toronto. Chartered Accountant Toronto can provide you with valuable insight into the profitability, financial strength and operations of your business.

Chartered Accountant Toronto – Financial Statements
As a business owner, you should be regularly reviewing your company’s financial statements with your Chartered Accountant Toronto. Your review should consist of:

• Analysis of gross margin (is the company‘s gross margin increasing or decreasing and why?)
• Identifying areas for cost savings by scrutinizing each major expense category
• Profitability – are you in the black or red?
• Taxes – what’s the best way to reduce them?

Chartered Accountant Toronto – Cash-Flow Forecast And Budgeting
In these uncertain economic times, it’s important that your Chartered Accountant Toronto prepare a budget or cash-flow forecast for your company. By doing so, you’ll be able to identify if your business is viable and if there is sufficient cash-flow to cover operating expenses, financing charges and capital purchases in the next year.

Chartered Accountant Toronto – Goal Setting
You should speak with your Chartered Accountant Toronto about establishing appropriate financial goals / objectives for your company. Such financial goals could include: % increase in sales, target gross margin, % increase in net income, increasing inventory turnover, decreasing days in accounts receivable, etc.

By establishing financial goals you will have set a benchmark to evaluate your company’s performance. In addition to goal-setting, you and your Chartered Accountant Toronto should analyze any variances between your goals and actual results.

Chartered Accountant Toronto – Minimizing Taxes
One of the biggest expenses of any company are corporate taxes. You should develop a tax plan with your Chartered Accountant Toronto to achieve a reduction in your company’s tax expense. Chartered Accountant Toronto are aware of many tax savings opportunities to help increase your company’s bottom line.

ABOUT THE AUTHOR

ALLAN MADAN

CPA, CA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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