Managing your business finances is an essential part of setting up your company. It is important to be aware of the various accounting options available and that you can switch methods if you need to.
As a business owner, you have the option of either managing your accounting yourself or hiring someone else to do it. This second option, called accounting outsourcing, can have many benefits for your business.
In this article, our tax accountants provide an overview of the advantages of outsourced accounting for businesses. Discover how outsourcing can help you streamline processes, reduce costs, and increase efficiency.
How does accounting outsourcing work?
Outsourcing accounting is a process of delegating your company's financial management to a certified public accountant (CPA). This allows you to benefit from the expertise of an experienced professional to handle part or all of your accounting needs.
Business owners often opt to outsource their accounting for various reasons:
- Managing the company's accounting responsibilities alone may become too demanding
- They lack the proficiency to handle their own accounting,
- The company lacks the resources to employ a permanent accountant
Hiring a professional team to handle your accounting can be a great way to free up your time and reduce stress. This will enable you to focus on other essential tasks, while removing the burden of accounting responsibilities.
What are the benefits of accounting outsourcing?
Exploring the possibility of outsourcing some or all of your accounting operations can bring many benefits to your business. Uncover some of these advantages!
1. Ensure the longevity of your business
Accounting can be a very challenging field. It is possible to learn the basics of managing the finances of a small business, yet it might be prudent to employ a qualified accountant (CPA) to handle these tasks.
By hiring a tax accountant, you can ensure extra protection for your business. This can help to avoid any potential penalties from the government for not remitting taxes on time, as well as remind you of any important tax-related tasks that you may have overlooked.
Outsourcing your accounting can give you peace of mind that your business data will be secure and guarded ethically. CPAs are dedicated to keeping their clients' information confidential, providing an added layer of protection.
2. Focus on your core business
As a business owner in Quebec, particularly for a sole proprietorship, it is common to take on all administrative duties in addition to other tasks.
Doing your own accounting can be a lengthy process, even if you are familiar with the fundamentals. On days when there is limited time, accounting can be a major drain on your efficiency.
Outsourcing accounting can bring you peace of mind as a business owner, as it allows you to focus on the tasks that require your personal attention. Having a tax accountant on hand can help alleviate any stress associated with managing finances.
3. Expert advice
Chartered accountants, as members of a recognized and regulated Order, must adhere to certain duties, one of which is to offer professional advice.
By outsourcing your accounting, you are not only gaining access to the expertise of a professional, but also benefiting from their experience and insight that you may not possess.
When starting a business or facing critical decisions, an accountant can offer the best guidance to make the right call.
Outsource your accounting with T2inc.ca
Outsourcing accounting remains a beneficial option for entrepreneurs, even as accounting processes become less challenging. There are now many helpful applications available to the public, enabling them to manage their own business taxes.
T2inc.ca provides an innovative solution with its online accounting software for small business, providing an optimal balance between outsourcing your accounting and managing it yourself.
Completing your small business tax accounting can be done in a few simple steps, with the option of having them validated by experienced professionals. This allows greater flexibility and cost-efficiency, compared to working exclusively with a CPA. Get in touch to find out more!
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
