During the dreaded tax season, blood pressure levels spike, especially for small business owners scrambling to get their bookkeeping in order. Traditional processes for tax reporting of small businesses involve the owner collecting boxes of receipts and invoices to calculate the total expenses and revenues of the company during a fiscal year. It’s asking for an early death by a thousand papercuts.
The process is even more complex if you don’t budget for a CPA who prepares financial statements based on your bookkeeping. If you choose to do it yourself, you’ll spend hour upon hour, day upon day, looking through financial accounts and tallying receipts to ensure that your numbers add up. And even after that, you’ll still be praying you never get audited in case you slipped up!
Real-Time, Automated Accounting Software
The digitization of accounting processes enables real-time bookkeeping. Accounting software provides key financial information with the push of a button (no, really – check out our free accounting app). Choosing any of ReInvestWealth’s CPA-managed plans, a small business owner would simply link their accounts in order for the financial data of their business to be consolidated in one place. Tedious calculations like invoicing, accounts payable, accounts receivable, income and expenses are automated and updated daily once key business accounts are linked. There are at least 10 major benefits small businesses reap the rewards of when they switch to cloud accounting.
Accounting software also allows small business owners to track upcoming deadlines to avoid being late when it comes time to report. It’s one less thing to have on your already overflowing plate. The simple, streamlined process provided through most accounting software allows you to stay organized and stay focused on other aspects of the business, ultimately reducing stress.
No Bookkeeping Mistakes, No Headaches
With the increasingly rapid pace of change in the financial sector and, by consequence, the regulatory frameworks surrounding accounting processes for small businesses, the risks of making reporting mistakes are greater than ever.
Look, for example, at the CRA guidelines on taxing cryptocurrency. The page highlights the tax implications of cryptocurrency transactions for individuals and businesses. Even small business owners that are confident in their accounting abilities may overlook a new regulatory area such as this one.
By subscribing to or paying for a service that manages accounting, a small business can defer the responsibility of adhering to ever-changing government regulations to the accounting service’s experts. Thankfully, ReInvestWealth’s accounting software and other online accounting companies are aligned to government regulations, so you don’t have to worry about accidentally falling into noncompliance.
The CPA Difference
By filing taxes using any of our ReInvestWealth CPA-managed plans, small business corporations have the unique ability to discover tax-saving opportunities. While there are platforms out there that offer tips and tricks to use, a CPA provides business-specific tax advice using all of the information you provide to them and their deep knowledge and experience filing corporate taxes. That way, you can be sure that you’re getting the best bang for your buck at the end of the fiscal year.
Small business owners must truly be a jack-of-all-trades: from managing inventories to making payroll to budgeting to managing employees to dealing with customers, there’s no shortage of things to do in a day. It’s time to give yourself valuable hours back each week so you can focus your energies on your small business’s performance.
Accounting Software Saves Small Business Owners Time & Money
Accounting software, like ours at ReInvestWealth, aids tremendously in the growth of a small business. Not only does automating and outsourcing tedious accounting tasks save time, but, as savvy business owners know well, money. Book an appointment today with one of our accountants to learn more about the online accounting package that’s right for you.
Written by: Shaan Hooey
ReInvestWealth Founder and CEO: Behdad Karimi Dermeni