Understandably, one of the most important aspects of running a business here in Ottawa is accounting for every transaction that occurs as a function of the operation. Moreover, the decisions on the type of transactions carries more weight than all other aspects combined. One decision that can effectively cost the most is the decision to keep the accounting aspect in-house, specifically when it is a new business.
The things to avoid as a Small Business Owner
The first thing is attempting to manage every operation of an Ottawa business. Doing this is not always cost effective. The main reasoning behind this is that the new business owner should have the ability to spend more time building and strengthening the operation through growing the customer base and the quality of the service or product line being offered.
This means having the capability to delegate the bookkeeping and accounting aspects to someone who has experience in these matters. This is because the accounting will take a lot of time away from the other operations of the business. The most common mistake that Ottawa small business owners tend to gravitate to is cutting costs by hiring an accountant with minimal experience at a low rate.
While this may seem to save money at first, it can, in certain circumstances lead to more expenditures than are really necessary. Specifically, when they make the accountant or bookkeeper a direct employee. Doing this adds the expense of insurance, an hourly rate, with over time, (in some situations), or an unnecessary salary.
Another point is not separating business and personal finances. This alone will create issues that will prove costly. With only these arguments in mind a way to avoid them is outsourcing the accounting and bookkeeping. This method will save money because outsourcing functions on an “as needed” basis. Doing this allows for more time to focus on the growth aspects in addition to gaining a resource for financial advice.This makes the effort to find an Ottawa accounting and bookkeeping firm with the experience and dedication to their clients a valuable recommendation.
For more information, visit our website at https://envolta.ca/services/bookkeeping/ or call us at (613) 567-7088 and get the right advice for small business accounting.