One of the most pivotal decisions you will make when starting your enterprise is choosing your business structure. The entity you choose impacts taxes, liability, your control, and how to pay yourself from your business. You can structure your business as a sole proprietorship, partnership, corporation, etc. Some business structures are more complicated to manage than others. You may have significant filing and reporting requirements, depending on how you structure your company. Before selecting a business entity, lay out your business goals and consider the pros and cons of each.

Unless your business is a separate legal entity or operates under a “doing business as” name, you don’t have to open a separate business bank account. But, separating your personal and business funds is a wise decision, even if you aren’t required to do so. Mixing personal and business funds can cause you to file taxes inaccurately, become disorganized, and overspend. You may accidentally use business funds to make personal purchases if you combine funds. Opening a business bank account is a straightforward process: choose a bank, gather necessary documents, and open the account.

Filing deadlines depends on the type of remittance or report for companies, and how you initially set-up your remittance periods, which can also be modified. For individuals, filing deadlines are set by each authority, and penalties are charged for late or incorrect filings.

Not every aspiring entrepreneur can afford to bootstrap their business. You may need to think about financing options if you want your small business idea to come to life. If you are interested in borrowing funds, you can apply for a business line of credit, credit card, Small Business Administration loan, or general bank loan. You may need to offer collateral to secure loans. If you want investors to invest in your business, you likely need to offer them business equity or control in your company. Asking friends and family for loans or investments is another popular financing option for small businesses. Treat funds from family and friends seriously by creating a contract and payment plan.

An audit is an examination of your business’s financial records. During an audit, Revenu Québec or Canada reviews your records and checks for inconsistencies in your books. Sometimes, they randomly choose businesses to audits. Or, they can audit you if your small business tax returns look suspicious. To decrease the chances of your business getting audited, you need to avoid audit triggers such as running a cash-only business, making errors on remittance forms, missing tax deadlines, and claiming too many business expenses. The proper qualified accountant can guide you through all these steps, and assist you with communicating with appropriate authorities in order to resolve audits.

To determine your business’s financial health, you need to know how to calculate profit. Use the following formula to find net profit:
Net Profit = Revenue – Cost of Goods Sold – Expenses

If you want to increase net profit, you need to decrease expenses and increase revenue. Easier said than done, right? There are a few ways you can decrease expenses. You can shop around for different vendors to see if you can find better deals on supplies, inventory, and equipment. Or, you could look for expenses that you can reduce or cut out altogether. Coming up with new ways to increase revenue may also increase profits. You can increase sales by offering discounts, decreasing your prices, participating in local or web events, and more effectively market your products.

The proper accountant can best advise you which legal structure best suits your business needs, whether corporation, registered company, etc. They can answer all your questions on the legal and tax implications of each, and help you make the proper decision. Accountants are also aware of all government accounts required for your business that need to be set up, such as payroll deductions, sales tax, etc. They will handle all start-up steps required to have your business up and ready.