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New Business and the Right Accounting Strategies

business and accounting strategy

Now with so many people working from home, and especially if this is a new experience it can be hard to form the right business mind set.   It really is quite pleasant not to have to rise early in the morning to get ready for work and battle the traffic.  At the same time however, if you are thinking of a business at home then you will have to adopt good business sense if you want it to be successful.

This is going to include the right accounting strategies no matter how small the business is.   Many businesses that have started at home have grown quickly and in some cases soon demand a separate location.

If the accounting practices are not started right from the beginning it can be a nightmare trying to get it on track.   A lot of money can be lost by way of potential tax credits, or errors being made on the tax obligations.

It is important to designate an area of the house that can be deemed as the office even if there is not an actual room that can be assigned for this.   This is where your work computer and your filing cabinet or desk should be located.   By having a designated area you are more apt to organize the administrative sector of your business.

If you are like most people chances are you are going to do the majority of your financial work on your computer.   This is great but you are still going to have a collection of business papers like receipts for example.   These are all part of your accounting records.

If you are going to use any type of accounting software make sure you know first before buying its capabilities and restrictions.   If you are using a good quality Toronto accountant then you may want to check with them as to what software they would recommend for your accounting activities.  If as of yet you have not sought out an expert such as this, then the earlier the better.   Don’t wait until tax season to do this.   There are many different ongoing aspects of your business in regards to its financial status that this type of professional can assist you.

You may get to the point where you will be in a position to Incorporate your business and before doing so you will want to discuss the pros and cons of doing this with your tax accountant.

 

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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

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