The Job and Cost of an Accountant for a Small Business

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Business growth takes time and also requires more labour. Business owners want to build their customer base and nurture their existing customers via good communication and customer service. Nonetheless, growing a business also requires creative problem solving, handling pressure, and improving products and services. Businesses also have to ensure they run their business in compliance with rules that the government has implemented for them. Businesses also need an up-to-date financial reporting system to monitor their performance and make informed decisions. Small business owners usually rely on an accountant for a small business via outsourcing accounting services to manage their financials.

In addition, outsourcing accounting services from reputable accounting firms, such as GTA Accounting, saves time for business owners. Plus, it eliminates the risks of non-compliance or inaccurate financial data recording. Moreover, business owners who decide on outsourcing accounting services from small business accountants want to know first how much it can cost. We are going to find out in this post what small business accountants do and how much they cost.

Do Businesses Need Accounting Services?

It is necessary for business owners to know whether they need accounting services or not before considering the cost of accounting services. Besides, many business owners think bookkeeping and accounting are the same. For the same reason, they use these terms interchangeably. However, bookkeeping and accounting are not the same. There are noticeable differences between bookkeeping and accounting. 

Moreover, business owners should know their business needs beforehand before considering the cost of accounting or bookkeeping services. For instance, hiring an accountant to record transactions with a single-entry system is a waste of money for straightforward businesses. Plus, a business may need to hire a tax consultant to file returns to ensure it does not miss any tax-deductible expenses and file its return on time.

What Do Small Business Accountants Do?

Accountants use financial data to generate financial reports that reflect the performance of a business. They are qualified professionals with a comprehensive knowledge of finance. Furthermore, small business accountants handle a variety of tasks for businesses, such as:

  • Analyzing and corroborating financial data
  • Creating financial statements, like balance sheets and income statements
  • Performing audits 
  • Utilizing data to gain insight into a financial position of a business
  • Identifying financial inadequacies or opportunities for growth
  • Giving business owners the financial information for making informed business decisions.

An accountant for a small business, such as a CPA, chiefly plays an advisory role. Plus, consult with business owners to ensure accurate financial reporting. Advisory services from accountants aid businesses in finding solutions regarding the best method for reporting inventory costs, calculating depreciation on assets, etc. Highly qualified accountants earn a bachelor’s degree from an accredited university or a college. In Canada, accountants also need to complete the CPA Professional Education Program and pass the Uniform Evaluation exam to qualify as a CPA. Bookkeeping is one component of accounting, and many accounting firms render bookkeeping services to SMBs besides accounting services.

Tax consulting is also part of accounting and comprises tax preparation plus counselling from an expert. Tax preparation entails the mechanical process of accumulating business financial information and transferring it to tax forms. Plus, it involves the submission of tax returns to the CRA for processing. 

In addition, only certified public accountants can render tax consulting in an expert capacity. Filing tax returns is a regulated service that requires consulting from an expert in a complex tax situation. Tax counselling can avert mistakes on tax forms and CRA fines. Professional tax counselling also helps a business to minimize its tax obligation. Thus, small business accountants offer diverse accounting services to businesses, based on their qualification, specifically, bookkeeping, advisory, and tax services.

The Cost of a Small Business Accountant

In Canada, small business accountants charge an hourly rate, ranging from $30 to around $400 per hour for general accounting services. However, CPAs render white-glove accounting services. For the same reason, they charge more. Additionally, the cost of a small business accountant depends on various factors. Those factors include qualifications, years of experience, and the location of an accountant. Partner accountants in an accounting firm usually receive a fixed salary alongside a share in the profit of the firm. Moreover, larger accounting firms also offer accounting services as a package, like bookkeeping and tax consulting services.

Conclusion

Growing a business requires labour and also time. Further, businesses need an up-to-date financial reporting system to monitor their performance. Small businesses typically rely on outsourcing accounting services from an accountant for a small business to manage their financials. Besides, small business accountants can handle a variety of accounting tasks. Moreover, high-qualified accountants, such as CPAs, offer diverse accounting services to small businesses, like tax consulting, business advisory, bookkeeping, etc. Small business accountants can cost small businesses from $30 to $400 generally. Nevertheless, the cost of CPA is more for small businesses as they render white-glove accounting services.

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