5 TOPICS EVERY BUSINESS OWNER SHOULD DISCUSS WITH AN ACCOUNTANT

Here are five key business issues that should be part of that dialogue.

1.Company growth: If you are planning any major changes to your business, it could affect your valuation-and your tax liability. Inform your accountant of any liabilities or changes in status including:

• Expanding into new locations;
• Adding or making changes in staffing;
• Merging with or acquiring companies;
• Positioning the business for acquisition or sale.

2.Financial planning: Budget is top of mind for most company executives going into a new year. But what about other financial issues that could impact your business? Now is a great time to do a portfolio review with your accountant to plan for your financial future. Topics to cover include:

• Strategic ways to improve cash flow;
• Getting up-to-date on retirement planning and wealth management;
• Any major investments, gifting or charitable giving planned;
• Capital investment, equity financing or bank loans in the works.

3.Risk Management: Close to 75% of small businesses don’t have a plan in place to protect their business from operational disruptions-either planned or unplanned. Broach the topic of continuity planning with your accountant and ask for input on ways you can mitigate risk in your business. Questions that you should be prepared to address include:

• Are insurance policies up to date?
• Are stringent compliance, security and privacy standards being met?
• Is the company protected against fraud?
• What internal controls are in place to protect the business?

4.Inventory: Work with your accountant to do a thorough assessment of your order process and cross-check that:

• Restocking and ordering processes are maximizing cash flow;
• Unsold inventory is properly accounted for on the balance sheet;
• VAT is being claimed everywhere possible.

5.Tax compliance: Are you confident that you have adequate processes in place to comply with all Tax Regulations (VAT, Employees’ Tax, Income Tax, etc.)? Discuss any new tax laws with your accountant that could affect your business and how you can implement changes to address them. Seek counsel on:

• Dealing with contract staff;

• Ensuring proper compliance with VAT in respect of imports and exports;Update their taxability practices to comply with online sales;
• Conduct an internal review to look for any red flags that could trigger a Capital Gains tax audit.

Now is also a great time to reinforce a few best practices. Keep business and personal finances separate and to ensure all transactional records are complete, organized and easy to access. Automate any manual processes to save time and money and reduce risk. The sooner you get started on long-term financial planning and compliance, the sooner you will start seeing bottom line results.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)