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Choosing the Right Reasons for Closing Your Business

Closing your business

Every business owner becomes frustrated at some point in time with their business, even if it is turning a good profit. This usually comes when the owner sits down and looks at the financial statements and sees how much money is going out of the business, including the tax obligations.

Sometimes both business owners as well as employees feel like they are working for the government when they have to pay a substantial amount of taxes. Closing a business because of this really may not be the right move.

If it is your business expenses that are frustrating you and leading you to thinking about closing your business there are a few steps to take before making the final decision.

First take a really close look at your financials and see if you can identify what the expenses are and where you could perhaps cut these. All too often busy business owners get caught up with the daily operation of their business they don’t get the chance to implement some smart shopping. It may be that you could get better deals on the supplies that you need. Or it may be that you are paying for services that your business really doesn’t need.

It could be that you haven’t done any type of tax planning for your business.

Once you have looked at your financial records and formed your opinions, then take them to a qualified small business accountant who will probably view them in an entirely different way. These are the experts that can quickly tell you what the business strengths and weaknesses are.   Between what you have discovered and what your business accountant will tell you, there may be a good chance that you can make your business far more viable.

If your thoughts about closing your business are not merely based on financial frustrations, then determine what it is that is leading you in this direction.   Are profits deteriorating because you can’t keep up with your competitors? If so then take a close look as to whether a few changes in your business strategy may make a difference.   It could be that you just haven’t been keeping up with the times and there are just a few adjustments that need to be made.

Be sure to discuss with your business accountant as to the reasons why you are considering giving up your business.   He may have some suggestions or at least support your pending decision which may help you to know if you are doing the right thing or not.

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

Contact Sam today

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