Unlock Profit Potential Using Contracted Tax Services

The regular use of contract services began to grow with staff augmentation through hiring contracted personnel or services, which has become a large sector of the Ottawa business landscape. Temporary workers, here in Canada, make up around 14%, (as many as 13.6 in 2013) of the total workforce. In more recent times tax preparation services have become more and more popular with both individuals and businesses.

This process is also understood as “outsourcing”, which is a very good way for businesses to cut expenses and increase the bottom line, (profit). The lowered expense is manifest through the lack of paying workman’s compensation insurance, medical insurance and retirement. For larger businesses staff augmentation works well, small businesses do better with outsourcing certain aspects of their operations, in this scenario accounting and tax preparation.

The concept is the same as with a temporary employee, the business pays the tax service for work rendered only. The outcome of this is the tax remittances for local, provincial and federal burdens are paid on time and without mistake. The reason this works out this way is due to the professional chartered accountants throughout Ottawa that prepare the tax returns from the information received from the other half of the service, the bookkeeper, (who prepares all business financial reports).

“Others choose to agree to a service contract with an accounting firm for the full spectrum of financial management services,”

Subsequently, it is understandable that some small businesses have their own in-house bookkeeper, and only seeks to outsource during tax time, others choose to agree to a service contract with an accounting firm for the full spectrum of financial management services here in Ottawa, bookkeeping, accounting, and tax preparation. One advantage of this is the immediate realization to meet a larger customer base without having to hire additional staff.

With these factors in mind, as a small business, it is wise to shop around and talk to other local businesses about how they approach this subject of outsourcing their accounting needs and how it works for their operation. As of lately more businesses her in Ottawa and the surrounding region have been moving towards outsourcing the accounting and bookkeeping aspects, this means that there are plenty of resources of information on which accounting firms are the best to work with.