The Important Role of Accountants: 5 Reasons Why Your Calgary Small Business Needs One

Under the microscope of a Calgary business, one key responsibility often stands out as a necessary back-room role that sometimes goes overlooked: the accountant.

Today I’d like to show you why having an accountant on the team of a small business is important.

We are bookkeepers and tax preparers in Southern Alberta. We offer remote services to small businesses anywhere in Canada. If you are looking for accounting services, contact us today for more information.

 

Overview

• Why An Accountant is So Important
• They help with Financial Management and Planning
•  They keep Your Business in Compliance
•  They Can Make Things More Efficient
•  They Can Provide Strategic and Financial Advice
•  They Make Your Business More Credible and Trustworthy
•   How to Get an Accountant on Your Team
• Hire an Accountant
• Outsource the Accounting

 

1. Financial Management and Planning

·         Accountants are skilled in financial management and planning, helping your Calary business navigate complexities you might encounter.

·         They can interpret financial data, prepare budgets, and forecast future trends, providing valuable insights that guide strategic decision-making.

·         By understanding your company's financial position, an accountant can help identify areas for growth, mitigate risks, and optimize resources.

 

 

2. Compliance and Regulatory Adherence

·         Going through tax laws, regulations, and compliance standards can be difficult for you as a business owner.

·         An accountant should be well-versed in these areas, ensuring your business remains compliant with all relevant Canadian Tax laws and regulations.

·         From getting taxes filed accurately and timely to observing financial reporting standards, an accountant helps your small business avoid costly CRA penalties and legal issues, and can bring you peace of mind.

 

3. Business Efficiency and Cost Reduction

·         An Accountant plays a crucial role in maximizing small business efficiency and bringing down costs.

·         By restructuring day-to-day financial processes and identifying gaps in the system, they can put policies in place to streamline operations and make your small business run smoothly.

·         Whether it's optimizing cash flow, reducing overhead expenses, or negotiating better vendor contracts, an accountant is instrumental in saving your small business its hard-earned income.

 

4. Strategic Financial Advice

·         Beyond numbers, an accountant offers business advice that will give you an advantage.

·         They can make small business owners in Calgary aware of possible areas to increase investments, capital allocation, and financial risk management, guiding small business owners towards realistic growth and long-term success.

·         Their expertise extends to financial modeling, scenario analysis, and acquisition and merger evaluations, helping your small business make solid decisions in the Canadian market.

 

5. Trust and Credibility

·         Transparency and accountability are important in today’s business world. Your small business relies on the trust and credibility infused by your accountant.

·         An accountant keeps accurate financial records, can conduct audits, and provides assurance services that give stakeholders confidence, including investors, creditors, and customers.

·         Their role in upholding financial integrity will give your small business a better reputation and credibility of businesses in the eyes of the public.

 

Options for Having an Accountant on Your Team

If you’ve decided you need an accountant working with you in your small business, you’ll be faced with the question of Should I Hire an Accountant, or Outsource?

If you Hire an In-House Accountant:

Pros:

1.      Dedicated Expertise: Having an in-house accountant provides businesses with a dedicated professional who understands the ins and outs of your small business’s finances and can provide personalized advice and support.

2.      Availability: An in-house accountant is going to be available during regular business hours. You’ll get responses to financial questions and timely decision-making.

3.      Cultural Fit: An in-house accountant can fit into the company culture, for better communication and collaboration with other departments.

Cons:

1.      Higher Costs: If you hire an in-house accountant, it will be expensive, including salary, benefits, training, and overhead costs such as office space and equipment.

2.      Limited Expertise: An in-house accountant may have more limited experience and knowledge in comparison to a specialized accounting firm or someone who serves multiple clients across various industries.

3.      Risk of Dependency: If you rely solely on an in-house accountant, that dependancy may put you out in case of unforeseen circumstances such as illness, resignation, or vacation time, leading to potential disruptions in financial management.

 

Outsourcing Accounting Services:

Pros:

1.      Cost-Effectiveness: Outsourcing accounting services is going to be more cost-effective than hiring an in-house accountant, as businesses only pay for the services they need without incurring overhead expenses or long-term commitments.

2.      Specialized Knowledge: Outsourced accountants partner up with others who are experienced professionals with diverse expertise in accounting, tax, and financial management, providing your business with access to specialized skills and knowledge.

3.      Suitable for Any Sized Business: Outsourcing allows your business to scale its accounting services up or down based on changing demands, such as during peak seasons or periods of expansion, without the having to deal with hiring or downsizing staff.

Cons:

1.      Potential Communication Obstacles: Outsourcing accounting services could lead to challenges in communication and collaboration, especially if the accounting service is located in a different part of the world or operates in a different time zone.

2.      Relying on Third Party: Outsourcing means relying on an accountant outside your small business for important financial functions, which may raise concerns about confidentiality, data security, and control over financial processes.

3.      Cultural Differences: There could be a lack of support between an outsourced accountant’s training and the company's culture or values, which in theory could potentially affect the quality of service delivery and relationships with customers.

 

For most small to medium businesses, it is going to come down to the cost of hiring an accountant versus outsourcing the day-to-day accounting to an outside accounting service.

Some small businesses choose to do the bookkeeping and day-to-day accounting tasks and hand off the files to a tax preparer at the end of the company’s fiscal year.

 

 

 

Conclusion

To sum it all up, an accountant can be an indispensable asset to your small business, offering a diverse range of skills and expertise that extend far beyond number-crunching.

From financial management and compliance to strategic advice and trust-building, their contributions are essential to the success and sustainability of businesses in Canada’s business environment.

By partnering with a skilled accountant, your small business can get through challenges, seize opportunities, and thrive in an ever-evolving marketplace.