Small Business Accounting Challenges
Small businesses have specific challenges and needs that are very different from larger more established companies. Budget is typically a concern as small businesses and startups work to get their revenue streams established. There is an additional challenge addressing the technical aspects of dealing with CRA – something many small business are just not able to do.
Here are some common issues:
- Lack of understand of what is a deductible expense
- Not understanding how GST works
- Creating invoices that are not compliant with CRA
- Recording revenue and expenses using Cash accounting methods.
- Using old and outdated techniques in their business because of lack of awareness of better tools
- Using the wrong business structure for their company (ie: incorporating too soon or too late)
- Tracking vehicle expenses
- Maintaining proper documentation for expenses
- Missing or not understanding filing deadlines.
- Not tracking personal injections or withdrawals of cash in their business
- Using a personal account to run their business
- Not registering for GST when required
