Do You Need an Accountant?
Hello All,
My friend Sarah has been wanting to renovate her bathroom for several months. She knows she can (and is eager to) do a lot of the work, but she still needs help getting started. Her big challenge is finding someone who:
a) she can trust
b) can give her guidance and take on the more complex aspects of the job, and
c) can tell her what she doesn’t know or never thought to ask.
Anyone who has ever been in this situation understands the near impossibility of finding this person. So, she remains in stasis.
I frequently hear a similar sentiment from consultees who are also looking for accountants i.e. they want someone who can take away the friction and the stress that comes with tax obligations. This doesn’t seem like a big ask but the accountants they meet with often seem lacklustre or, worse, ghost them. The consequence? Their tax returns are late, the stress accumulates, and the overwhelm of it all leads to avoiding the problem altogether.
If you find yourself in this situation, here’s what I recommend:
1. Evaluate your capabilities.
Not every business needs an accountant right away. If you’re a sole proprietor with fairly straightforward finances, you can likely manage most things yourself especially if you feel comfortable doing your own bookkeeping.
2. Focus on what you can do:
Doing your own accounting especially when you're a small business, self-employed, or a freelancer with a manageable number of transactions can be relatively straightforward. There are lots of templates online. Alternatively, using software like QuickBooks Online can greatly simplify the process and save you a lot of time.
Understand your GST/HST and/or QST obligations. If you are registered, keep track of the amounts collected and paid in your accounting system. Filing the actual return is fairly straightforward.
Track deductible expenses while they’re fresh. Ideally, use separate bank and credit card accounts for your business to make this easier.
Use tax software (such as UFile) for sole proprietors filing your own returns is doable. And if it still feels like too much, this is often the easiest part to outsource (especially if your bookkeeping is organized).
If you are incorporated, you can still manage your own bookkeeping using software. Many of you can also handle GST/QST filings, dividends, and payroll. Corporate taxes are more complex, though, and I do recommend working with an accountant for those.
3. What to look for in an accountant:
If you do need an accountant soon, you might need to speak with several candidates. Look for someone who:
Responds clearly and reliably
Is willing to explain things without jargon
Has experience with your type of business (sole proprietor vs. incorporated)
Takes a proactive approach by offering guidance and helping you understand your numbers, rather than just filing your tax returns
Is transparent about fees and what’s included (fixed fees are often preferable to hourly rates)
As someone who has experienced paralysis due to the uncertainty involved in moving forward, I completely understand what it feels like to be stuck. But breaking it down into manageable steps can significantly chip away at that ball of stress.
Have a great weekend!
Ronika
