Top Ten Signs Your Business Needs a Chartered Accountant in Toronto

Does your business really require the services of a Chartered Accountant in Toronto? To help you answer this question, I’ve compiled ‘Top Ten Signs Your Business Needs a Chartered Accountant.’

1. Your company’s financial statements don’t make any sense
   Financial statements are extremely important in helping you evaluate the profitability and financial strength of your business. As such, it’s imperative that your Company’s financial statements are accurate.
   If your Company’s financial statements doesn’t make any sense (e.g. the gross margins are abnormal or the net income is materially different than your expectations), then you should consult a Chartered Accountant for a second opinion.
2. You are paying too much in tax
   Many Chartered Accountants are experts in the area of tax planning and are knowledgeable about tax planning strategies to save you and your business money. As an example, you can refer to my article on Small Business Deductions for Canadian Corporations.
3. You’re losing money or are not making as much as you expected
   Chartered Accountants based in Toronto can analyze your Company’s financial statements with the objective of identifying areas for cost savings and opportunities for increased profitability.
4. Your company’s accounting or record-keeping is a mess
   Have you stored all of your receipts in a shoe-box or plastic bag? If yes, there’s no reason to worry. Chartered Accountants can organize your receipts and other source documents to produce meaningful financial reports about your business.
5. The Company is growing rapidly and you feel like you’re losing control
   As companies expand rapidly, owners often feel that they’re losing control of their business. This is often the result of lack of appropriate internal controls, such as financial and operational controls.CAs in Toronto have the ability to identify control weaknesses in your organization and can recommend and implement the right controls to get your business back on track.
6. You’re applying for a bank loan or line of credit for your Company
   Banks may require that your Company’s financial statements be compiled by or reviewed by a Public Accountant, before they consider your Company’s application or a loan or a line of credit. The reason being is that the Banks’ lending decision is often based on the information contained in the financial statements and therefore, they must be accurate.Chartered Accountants will be able compile or review your company’s financial statements for the purpose of obtaining a bank loan or line of credit.
7. Tax returns haven’t been filed for several years and the CRA is hounding you to file them
   Significant penalties and interests can be charged by the CRA for tax returns filed late or for unpaid tax balances owing. To see a comprehensive listing of penalties that can be imposed by the CRA on corporations, please refer to the CRA’s website. Chartered Accountants in Toronto can prepare unfiled tax returns and can potentially have the penalties and / or interests waived by the CRA, by filing through the CRA’s Voluntary Disclosure Program.
8. Your company is expanding into the United States
   If your Company is expanding into the United States, then there are many tax considerations to take into account, such as:
   • The repatriation of profits from the United States to Canada in a tax efficient manner
   • Transfer pricing
   • The appropriate jurisdiction to incorporate your US company (certain states have a lower tax rate than others)
   • Whether the US corporation should be a subsidiary of your Canadian corporation or owned directly by you

   Many Chartered Accountants in Canada’s financial hub, Toronto have the technical expertise to provide you with the right tax advice on your Company’s expansion into the United States.

9. You don’t have an exit strategy from your business
   In many cases, the wealth of the business owner is tied up to his/her business. Therefore, it’s important to engage in the services of a Chartered Accountant to create an exit strategy that will enable you to extract wealth from your business upon your departure.
10. Your current accountant does not have a professional designation
    If your current accountant does not have a professional designation, there is a risk that he/she may be rendering incorrect financial and tax advice or making accounting mistakes that can affect your company’s financial statements and tax returns.Chartered Accountants in Toronto are designated professionals, all of whom are registered with the Chartered Professional Accountants of Ontario.

If you found this article useful, Allan Madan encourages you to visit his website for additional tax tips and more information on this topic. You can also call Allan Madan at 905-268-0150.