Smith Cageorge Perry LLP - Chartered Accountants

1. What services are available through a CA firm?
2. What is the purpose of a financial statement?
3. Why use a tax accountant as opposed to a 'regular' accountant?
4. What other services does a tax accountant provide?
5. Why is a business plan important?
6. Do I need a business advisor to sell my business?
7. What is the main reason for a business going public?
8. How does a manager/owner-manager maximize shareholder value?
9. What are some of the common problems associated with family-owned businesses and how can they be resolved?

10. How can I better prepare for the audit process?

1. What services are available through a CA firm?
Chartered Accountants are no longer just accountants; they are business advisors who are equipped to assist in various aspects of your business. A CA firm specializes in providing solutions for business growth. Some of the key services a CA firm can provide are:
- maintaining accounting records
- formulating business plans
- preparing cash flow projections
- implement budgeting procedures
- assisting with compliance for government filings
- using available technology to make your operation more efficient

2. What is the purpose of a financial statement?
Financial statements have had a bad rap for many years. Managers have in the past viewed them as a necessary evil; however, today's economy makes them a necessary business tool. A financial statement does more than just provide a synopsis of what has happened in your business. With the right application, a financial statement can assist you with:
- obtaining financing from banks and other credit facilities
- assessing the profitability and financial strength of your business
- maximizing the value associated with the purchase or sale of your business

3. Why use a tax accountant as opposed to a 'regular' accountant?
As in any profession, the more complicated the issue the more expertise needed to address the challenge. Tax is a complex issue. Businesses wanting to survive and thrive in the business world use tax accountants because they are specialists. These specialists will develop a strategic plan to save you money and provide growth opportunities. Why is tax so complex?
- tax laws are constantly changing
- industries have specific compliance requirements
- new tax bulletins, case law & legislative amendments are never ending
- international tax laws differ from Canadian tax laws

4. What other services does a tax accountant provide?
A tax specialist is key to the success of your business operation and can assist in your personal financial success as well. The following are some of the services a tax accountant can provide:
- personal & corporate tax planning
- wills & estate planning
- family trusts
- succession planning

5. Why is a business plan important?
Every successful business has a business plan. It provides you with a road map of your business growth and direction; as well, it can be instrumental in:
- obtaining financing to purchase a business
- financing the expansion of your existing business
- obtaining government assisted financing

6. Do I need a business advisor to sell my business?
Selling a business requires specific expertise for a successful transaction. Business advisors have that expertise. They are professionals with extensive knowledge and experience in buying, selling and restructuring businesses. A business advisor will facilitates the sale of your business by identifying suitable purchasers and negotiating the highest price.

7. What is the main reason for a business going public?
There are many reasons for going public but the main reason for most businesses is usually to raise the necessary funding for specific projects and future growth. A business can successfully raise capital by going public without burdening the business with excess debt. Some of the other benefits include:
- liquidity for shareholders
- enhancing your corporate image
- creating the necessary capital structure to facilitate future offerings
- enhancing ability to borrow as the public equity will improve your debt/equity ratio
- providing share options for senior management and employees so that they can share in the company's growth

8. How does a manager/owner-manager maximize shareholder value?
It is critical for a business' financial success and future growth for managers/owner-managers to understand the importance of maximizing shareholder value. Strong managers are focused and future oriented and have a clear vision for where they are taking the business. Key factors to consider:
- have a clearly defined strategic plan that is focused on long-term success
- share the strategic plan and vision throughout your organization
- understand how to create value eg. valued customer lists or access to scarce materials
- concentrate on areas that potential purchasers will consider in making acquisition decisions

9. What are some of the common problems associated with family-owned businesses and how can they be resolved?
Family-owned businesses face extra challenges beyond the universal ones faced by other businesses. The constant interplay of the family's dynamics and personal issues can interfere with the successful operation of the business. Some of the things that cause these problems are:
- no formal plan for leadership succession
- inter-generational strain from either an older generation that doesn't share responsibility or a younger one that wants to take over the business too quickly
- interference by family members outside the business
- competitiveness between siblings for leadership positions
- concern about wealth tied up in the business
- no clear rules on how compensation relates to contribution

The good news is that you can be a family-owned, successful business. Whatever the situation, there are solutions. Implementing some of the following key strategies can help alleviate and resolve the problems associated with family-owned businesses.
- look for root causes
- don't view problems in isolation
- solve problems with lots of involvement
- make solutions explicit
- create mechanisms to maintain balance
- know when to get help

10. How can I better prepare for the audit process and make it work for my business?
Business owners/managers are busy running the business and audits are the last things on their minds. An audit can be extremely useful in the overall successful operation and growth of your business if used correctly. Don't wait till the auditors are at the door. Prepare yourself in advance and incorporate the value of the audit process in the whole of your business operation by following these important steps:
- regular contact with your business advisor throughout the year
- introduce your business advisor to key individuals within your organization
- provide your business advisor with information about your entire operation including product lines, customer base, suppliers and risk factors for your industry
- share your strategic plan with your business advisor

These are a small sampling of the questions that we encounter through the course of any given day. As experts in providing business solutions and enhancing your business success, The professionals at Smith Cageorge Perry LLP are eager to respond to your questions. If you have questions, please contact us - info@scp-ca.com

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