Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
Income tax can be a complicated topic for a taxpayer. But not to worry—income tax accountants can help you navigate through the process and take care of your finances to free up space for the more important things in your life. The accounting profession can be lucrative and rewarding. Accountants help people manage, track, and report their earnings to the government on time. They also provide advice on how to best spend money for maximum income tax benefits.
Income tax accounting firms offer a wide range of services, including the following:
consultations on how to reduce your income tax liability legally
Dig deeper and have a better understanding of the accounting profession in Canada.
Canada has a robust economy, and the country is currently enjoying the tenth spot on the world's largest economies ranking syndicated by the International Monetary Fund (IMF). With a very competitive business landscape, entrepreneurs have to keep up and be always in trend. Marketing approaches changed dramatically with the advent of computer technology. Businessmen and advisers alike took advantage of the different systems and applications available on the web.
Facebook, Instagram, YouTube, and other platforms are powerful media tools for marketing. QuickBooks, Sage, and Xero are just a few accounting applications that help business owners track their cash flow, financial statements, and sales and reports generation purposes. However, experts and the right professionals are essential for better results and interpretation. Like the accounting software, an accountant is needed to provide accurate data.
Business owners are very meticulous in the people they hire, and accountants are not exempted. To become a full-fledged and competent accountant, one should become a Chartered Professional Accountant (CPA) after receiving a degree in accounting.
Before becoming a CPA, an aspirant must go through a rigorous undergraduate program in accounting that usually lasts for four years. For four years, an accounting student will be studying accounting principles, finance, taxation, laws, audit, and performance management. On top of that, there are electives, capstones, modules, quizzes, case studies, and exercises to validate all the accounting theories and further training.
After all the academic requirements, the accounting student must pass the Common Final Examination (CFE)—a three-day examination that allows the examinee to demonstrate the depth and breadth of competency development required on the CPA Competency Map. Another important requirement is having 30 hours of accounting experience.
NOTE: Canada has three different accounting designations before, which are Chartered Accountants (CA), Certified General Accountants (CGA), and Certified Management Accountants (CMA). To remove confusion and provide simplicity, over 40 provincial and national accounting associations thought of unifying the three designations in 2012. Two years later, a single designation, the Chartered Professional Accountants (CPA), was introduced in 2014.
It is never easy to become a CPA, and being one means that person has gone through the needle's eye. A CPA has proficiency in delivering accurate financial projections and analysis. That's why a CPA earns an average salary of nearly $79,000 annually.
Aside from financial reports, your income tax and accountant come hand-in-hand. CPAs are tax experts, and they can do your tax preparation on time as long as you provide the right data. They can even give you professional advice on how you will lower your tax legally.
When you hire a CPA, this tax professional can give you feasible financial decisions for the betterment of your financial management. A CPA knows everything about books and can prevent scams and other fraudulent activities.
If you are an employee or a start-up business owner, you need a CPA for the following reasons:
Whether you need to CPA for your personal income tax, income tax benefit accounting, or business consultation, the said expert will never let you down because a CPA is equipped with the knowledge and practical experience. CPAs know how to talk with the CRA and set your business on the right track.
You can also partner with income tax services like Unloop to help you with your tax preparation.
Would you like to know more about income tax? Read the article Here Are The Assistance You Need To Process Your Business Income Tax Rates Smoothly written by Michael Pignatelli, one of our CPAs here in Unloop.
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.