Financial Housekeeping is primarily the task of paying attention and maintaining your business finances throughout the year.
One of the first ways to set your business up for success is to organize frequent meetings with your CPA.
Small business owners can often struggle with the details of their bookkeeping and accounting procedures. Bookkeeping is an important function for a business, as it properly tracks transactions in the correct accounts to prepare financial statements for year-end.
A.M.I. CPA Professional Corporation offers full-cycle bookkeeping services and covers all the details so you can work on growing your business. We can help you balance the books every month to stay on top of your finances throughout your fiscal year.
Our Bookkeeping Services include:
- HST Remittances
- Accounts Payable/Accounts Receivables
- Payroll (Including Source Deductions)
- Bank Reconciliation
- General Ledgers, Journals
- Inventory Management
- Balance Sheet, Custom Reports
- Profit and Loss, Trial Balance
- Business and Personal Accounts
- Not-for-Profit Bookkeeping
What to Consider when Financial Housekeeping for Business Success
Should I Incorporate My Business?
This is a great question to discuss with your CPA. Once the business is profitable, incorporation can offer several significant benefits. Your business is a separate legal entity; creditors or legal actions usually go against your corporation and its assets, not your personal assets. Your business has tax flexibility from which you may personally benefit. You can choose the most tax-efficient way to pay yourself, including dividends, salary, bonus, or a combination.
Mixing Business With Personal Finances
It is common for small business owners to mix personal and business finances. A good rule to follow is not to use a personal bank account for business expenses or transfer money between personal and business accounts, even as a sole proprietorship. Avoiding this if you are incorporating your business is even more critical. Government agencies want people to refrain from claiming personal expenses as business expenses. There can be many variables; for example, if you drive to a business meeting and stop to do a little personal shopping, can you divide the gas expense? If you are having dinner with family and discussing business, is it a deductible expense? If you are on a personal holiday and discussing financial goals during lunch, can you deduct it as a business meeting?
This is where working with a CPA year-round for your business can be beneficial, as they will be able to answer all your questions about proper protocol for a successful business.
Year-Round Financial Tax Planning
Tax Planning is a process that helps you reduce the amount of taxes you will owe at the end of the year. It is always good to think in terms of year-round accounting practices. There are a number of ways to develop strong strategies around your corporate taxes, but they primarily involve reducing your overall income, increasing your number of tax deductions throughout the year, and taking advantage of certain tax credits in the Canadian Tax code.
Accounting Performance Management
Accounting Performance Management enables the creation of meaningful management information system reports to review the business’s health year-round and helps companies make informed and timely decisions to further their growth. Organizations can achieve better financial outcomes and drive long-term success by setting goals, monitoring key metrics, analyzing data, and making informed decisions.
Keep Working With Your CPA
To maintain Year-Round Financial Housekeeping for Business Success, work with your CPA to be consistently informed and have any questions that arise answered promptly. A.M.I. as a full-service accounting practice based in Oakville, Ontario, is available throughout the year to offer a broad range of accounting and performance services to ensure your business’s financial success.