Toronto is not only the most diverse city in Canada but also the number one city for entrepreneurs. It has become a global center for startup creation during the last ten years. VCs invested over $1.2 billion across 5,293 startups in eleven industries in the previous year. And what do startups have in common besides creating new and exciting products? They all need accounting services!
Building a new product is excellent, but as a business owner, you still have to pay salaries to your employees and taxes to the government. You need to provide reports to your investors and show them where the money goes and the ROI.
When you are a large enough company and can afford to hire a full-time accountant, she can provide all the accounting services you may need. But in most cases, startups are relatively small, and it does not make sense to have a full-time employee, or it is too expensive. In that case, an accounting firm would be an obvious choice.
Taxory is an accounting company that can care for all your accounting needs. We provide Full Cycle Accounting services for startups, and we are confident we can help your business succeed.
Key accounting services we provide for startups
Innovation funding and support
Startup accounting is very similar to regular business accounting; from CRA’s point of view, there is nothing special about it. They treat it like a regular business.
However, there are essential differences that experienced accountants would know. The major one is Research & Development (R&D) grants provided by Canada’s government. The accountant’s job is to keep track of the money that the government offers and prepare reports. That is why it is crucial to have a professional with similar experience who knows about R&D funding and tax credits.
Bookkeeping services for startups
When building a new business, you need to lay a strong foundation, and doing your bookkeeping right is vital for your company.
When your company is large enough, you will hire a professional bookkeeper as part of your team, but it does not make sense unless you have many transactions.
Most business owners try to do the bookkeeping themselves, and while you save money, you spend your time. Unless you run an accounting company, you better spend that time running your business.
Business owners who understand the importance of bookkeeping and value their time usually opt to hire an external bookkeeper on an hourly basis or for a fixed monthly fee. They send all financial information to the bookkeeper, and he methodically records all transactions. That is the best way to balance the cost and time. A skilled bookkeeper knows how to do it right from the first time and works efficiently.
Payroll services for startups
While it is still possible to run a one-person business, that is not a common scenario. Usually, you want to hire a small team of highly effective employees who can focus on different areas of your business. And with employees came the need for a payroll system to calculate their wages and CRA payroll remittances.
Our team provides payroll services for startups. We have extensive payroll experience and manage payroll for many of our clients. We prepare payroll tax calculations, help with new hires and termination processing, and payroll deductions such as CPP and EI. Get in touch to learn more about our payroll services.
Corporate tax services for startups
Business owners have to submit their financial information to CRA every year. It does not matter if you are running a one-person startup or already have dozens of employees. The rules are the same for everyone.
You need an accountant who can prepare all your financial statements and file a corporate tax return on time.
In addition, you have to file GST/HST returns during the year. Depending on our sales, you must pay GST/HST taxes or be eligible for a refund.
You do not want to mess up doing your corporate taxes & GST/HST yourself, and you better get professional help.
Our company provides Corporate & GST/HST tax services for startups and long-running businesses. We already know the best ways to prepare and calculate GST/HST returns, what types of HST return exist and how to choose the reporting period correctly.
Working with Taxory saves you time and gives you peace of mind knowing the taxes are done by a professional.
Let us know more about your business.
If you decide to hire an accountant for your startup, you can follow the following simple steps.
- Prepare a quick summary of your business, such as:
- What is your company doing?
- How many transactions do you have per month?
- Do you have employees?
- Did you apply for any government grants?
- Do you have any types of bookkeeping done already?
- Go to the Contact us section and send us a quick note with answers to the above questions.
- Once we review them, we may come up with some specific questions, and we can provide you with the quote.
- You can decide if the price is right for you and we can work together.
Frequently Asked Questions
Do I need an accountant from the first day I start my company?
The quick answer is “Yes,” and we suggest getting in touch with the accountant before incorporating. Unless you already own a corporation and know what share structure you need, you could make mistakes that will cost you later. We suggest doing everything right from the beginning.
Once you open your company, it is crucial to do the bookkeeping correctly and keep all records, so in case of a CRA audit, you can easily find and provide all the information. If you do not have experience, you better hire professional help.
Do I need an accountant or bookkeeper for my startup?
Accounting and bookkeeping are often confused with each other. Bookkeeping is just accurately recording all your financial data. However, an accountant interprets that data and prepares the financial statements, such as tax returns.
Your accountant can do the bookkeeper job, but not the other way around. Learning for an accountant requires much more time and effort. In contrast, you do not need special education to be a bookkeeper, just a few courses you can take in any of your local colleges. That resulted in a lower cost of hiring a bookkeeper and a higher price of hiring an accountant.
Sometimes we have clients who do the bookkeeping in one company, but accounting is done with us. However, in most cases, we do both the bookkeeping and accounting.
Anyway, both are important for your business, and you need both an accountant and a bookkeeper, but in many cases, you can get them from the same accounting firm.
Hire Taxory for your startup!
Hiring a professional accountant is the correct decision for any startup or regular corporation. Accountant saves you time and money and helps you focus on the business where you are the most productive. Please do not wait and give us a call or send a quick message. We will be back with a quote within the next two business days.