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Accounting Tips for Small Businesses in Canada by Accountant Oakville Mississauga

If you have a small business in Canada, then you should read this article. As an Accountant in Mississauga and Oakville, I will share the best accounting tips that will put your business on the path to financial success.

Accurate Books and Records

Tip # 1 Account for Small Business in Canada Keep accurate books and records

As a small business owner it is very important that you keep accurate books and records in order to:

- Assess the profitability of your business

- Evaluate the financial health of your business

- Cut costs by identifying excess spending

- Have peace of mind when audited by the Canada Revenue Agency

- Apply for a term by presenting accurate financial statements to your bank

Financial Statements Review - Accounting Tips for Small Businesses in Canada Accountant Mississauga Oakville

Tip # 2 Accounting for Small Business in Canada Overview The financial statements on a regular basis

A proper accounting system should provide you with accurate monthly financial reports such as:

The income statement

Balance

Goss margins by product

Inventory list

Statements of cash flows

Budget

The financial statements of the company by division / department

With a monthly cash flow statement you can identify the sources and uses of cash, which allows you to manage the company's resources.

With a monthly budget for your small business in Canada, you can better plan for the coming months, and effectively manage cash inflows and outflows.

With the financial statements your department can assess the profitability and financial health of each department.

If your current accounting system can not produce financial statements is appropriate, then you should seek the advice of an accountant in Mississauga or Oakville.

Effective purchasing accounting software package

Tip # 3 Accounting for Small Business in Canada Buy the right accounting software

Canadian small business accounting software package requires effective to produce reliable financial statements.

I recommend an accounting program like QuickBooks or Simply Accounting Pro, both of which are great for small businesses,? says Allan Madan, Accountant Mississauga and Oakville.

In addition to proper accounting program, small business in Canada requires a very good bookkeeping. If you have accounting software package is good, but you do not have bookkeeping capable, the information generated by the accounting system will not be reliable or useful.

Financial Tips for Small Business Accounting Controls in Canada Accountant Mississauga Oakville

Tip # 4 Accounting for Small Business in Canada implement strong financial controls

Effective financial control is a must for small businesses in Canada. Lack of financial controls can lead to unreliable information business intelligence, poor financial and fraud.

Examples of financial control are:

- Keep the receipt for the fee. Without a receipt you have no proof of purchase is done.

- Maintain a separate credit card for business purchases only. The last thing you want is a grocery bill or a movie ticket appears on your credit card. Imagine if a tax auditor to see that.

- Have a separate business account for deposits and expenses of your business. There should not be any personal expenses in your business account.

- Keep records of daily sales and deposit books so that you can track sales deposits. This will reduce the likelihood of employee theft.

- Double signature should be required on company checks. If only one person signing authority, then the person who has the ability to commit fraud to write a check for invalid charges.

- Review and approval of all employee expense reports before they are paid, which will keep spending under control.

- Regularly backup your financial electronic data so you do not lose it permanently

Consult with your accountant in Mississauga / Oakville on how to improve the financial control of your small business.