Monthly Archives: February 2012

The Importance of Accurate Accounting

Are you aware of all the current and new tax laws and regulations? Are you keeping up with currency fluctuations with our neighbours to the south? How is the stock market impacting your business? Today’s small business owner has to wear many hats, and the same can be said of small business accountants.

Gone are the days when their only tasks were keeping up with tax returns and tracking where a company’s money was going. Today’s small business accountant has to sift through a maze of ever-changing rules and regulations while maintaining an accurate paper trail in the event of an audit. In other words, a good accountant is far more than a “bean counter.” Think of a good accountant as a trusted business advisor.

Pay Attention to Detail
Accuracy and attention to detail should be priority No. 1, especially for small business accountants who are responsible for recording, reviewing and auditing all of a company’s finances. The savvy accountant should also keep up with all the latest accounting software to ensure accuracy. The penalty for failing to keep track of your finances goes far beyond an audit; accurate accounting can make the difference between whether a small business survives or thrives.

Partnership with Common Goals
Where do you see your business in five years from now? Ten years? Today’s accountant will work with you on your goals and hold you accountable by creating, and executing, a sound business plan. After all, no one knows your company’s finances better than you and your accountant. Communication between you and your accountant, therefore, is vital to your company’s future.

Keeping your goals in mind coupled with attention to detail will provide more accurate accounting results for your business.  At Five Star Accounting, we are more than accountants and bookkeepers.  We use our business expertise, combined with our accounting backgrounds to help you achieve your goals for your small business.

Value of Time: Making Good Use of Your Time as a Small Business Owner

Small businesses make up the backbone of the Canadian economy. Ninety-eight percent of all businesses in Canada are considered small, and those businesses account for almost half of the country’s labour force, according to Industry Canada. To keep up with the growing demand, small business owners need to be able to make the most of their time. Below are a few tips for small business owners.

Stay focused on what’s important
Pay attention to what drives sales. If 20 percent of your product accounts for 80 percent of your sales, then focus your energy on those products or services.  Similarly, spend time on activities that require your expertise.  Outsource activities like your bookkeeping to people that can do it better for you.  At Five Star Accounting, bookkeeping is our expertise and we can take care of your accounting needs so you can concentrate on your company.

Prioritize and meet deadlines
Work on the projects and activities in order of importance, then give yourself deadlines to complete each one. This helps keep you on track rather than getting slowed down by less important, time-killing activities.

Don’t wing it
Don’t start your day without a “to-do” list. Running a small business can be overwhelming, and it’s easy to get lost in interruptions and distractions. A “to-do” list will make sure you stick to your schedule, and it will help you prioritize.

Stick to your schedule
Once you’ve come up with a prioritized schedule, it’s important that you stick to your deadlines. The same goes for your employees. Missed deadlines are time wasters, because they push everything else back.

Keep your eye on the prize
Whether you’re the CEO of a Fortune 500 company or run a mom-and-pop diner, don’t lose sight of your goals. Are you looking to expand? Or are you simply trying to increase your earnings? Revisiting your goals each month will help you tweak them as necessary – and it serves as a reminder of why you started your business.