Understanding Financial Statements With Notice To Reader And Corporate Tax Returns
Being a small business owner is an exciting role as there are numerous avenues of business to explore and experience. Right from operations to marketing and resource management, there are several aspects to cater to. However, when it comes to business accounts and tax preparation, it’s best if you leave these tasks to the experts. This is especially true when your company needs to meet the requirements of external parties, like investors and shareholders.
If you’re looking for professional accountants in Ottawa, ON, reach out to the experts at Zak Accounting Professional Corporation. As accounting and taxation experts, we provide efficient accounting and bookkeeping support services to small and middle-sized businesses. This includes corporations, partnerships, individual entrepreneurs, and non-profit entities.
Besides the management of their accounts, we also offer them a financial statement with notice to reader and corporate tax return services. These are crucial aspects that must be sorted out accurately to keep your business from running into trouble with the authorities. To give you an understanding of how both these services work, we have explained them below.
1. Financial Statement With Notice To Reader
This is a financial statement that is prepared by a chartered accountant. It is also referred to as a compilation engagement as it is simply compiled based on the information you provide the accountant. But it doesn’t offer any assurance as it is not audited or reviewed.
Bank loans: All small business owners need financial statements with notice to reader to request for small business loans or a refinance loan or mortgage. A notice to reader financial statement will be one of the requirements to gauge your creditworthiness.
Internal annual reporting: This financial statement can be used by you to assess your business and draw a growth plan or overcome the financial challenges you’re facing.
Insights for investors: For small businesses, especially startups, investors may not request you to provide an audited or reviewed statement. In this case, the notice to reader financial statement is sufficient.
Insights for business sale: To sell a small business, you will need to furnish a notice to reader financial statement for the last three to five years. When it comes to larger firms worth more than five million, an audited statement is mandatory.
2. Corporate tax return
Each incorporated business must file corporate tax returns (T2) every year. As a corporation is a separate entity, it is mandatory to file tax returns, that is, within six months before the end of the fiscal year. If corporate tax returns are filed at one time, then business owners won’t be bothered by the Canada Revenue Agency (CRA) and will probably not be audited for a long time. When it comes to preparing corporate tax returns, the tax rates and laws differ from personal taxes, which can be confusing if it’s your first time filing corporate taxes. As a result, it’s vital to use the services of accounting experts.
If you’re looking for professional accountants in Ottawa, ON for your corporate tax and accounting needs, reach out to Zak Accounting Professional Corporation. We provide practical accounting and bookkeeping services to our clients at budget-friendly rates. We also offer them total accounting support and advice to help them take their businesses to the next level.