Business Management Articles
Accountants build a business’ success from day one
Brian Callander
BDO Dunwoody LLP
January 2005, Okanagan Business Journal
If you’re sick, you go to a doctor. If you have a legal problem, you call a lawyer. But strangely enough, those starting a business often don’t go to the professional they need the most – a Chartered Accountant.
As Canada’s longest serving financial professionals, Chartered Accountants’ expertise has helped lay the foundation on which many businesses have been built. From drafting business plans to keeping the books, and ensuring the right tax documents are filed correctly and on time, accountants make a new business work and an existing one thrive. And yet there are still entrepreneurs who try to go it alone.
Their confidence is understandable. Many have often worked in their field for a number of years. They know their markets, they know their prospective customers; they know their inputs; they know the cost of doing business. So when they come up with a new product or a better way to deliver a service, they’re convinced they can make a go of it.
Often, they’re on the right track. Their instincts and experience are correct. They have the makings of a business. What they lack, however, is the finely honed knowledge that comes from years of education, study, practical experience, and a commitment to sweat the small details that often make a large difference to the end result.
For example, in drafting a business plan, CAs not only create a blueprint for growth, but also vital document to help convince banks and other institutions to lend the necessary money for either start-up or expansion. Further, CAs can pinpoint the best sources of capital, and help the entrepreneur in their loan application. Accountants can also help make the “pitch” – talking to lenders in the language they understand and provide the additional credibility that may be required.
In addition it is at this planning level that the direction is set and the Chartered Accountants value can be critical. In today’s markets there are numerous sources of financing that banks may make available but each one will offer different terms that may make a huge difference to your operations. For instance, the seasonal skip payments make a huge difference for client in industries where they are unable to work due to weather or other conditions.
Once a business is up and running, accountants can handle bookkeeping and compile financial statements. While these tasks seem like nothing more than mundane paperwork, accountants delve beyond the numbers and draw specific information on how the business is doing.
Through professional’s expertise or specialization, your accountant can compare your operations to the industry standards to determine if you’re meeting or exceeding the competition’s performance. Where shortfalls are discovered, accountants can recommend improvements to help your business reach its fullest potential.
Others claim to have this expertise. Indeed, it seems anyone can put out a shingle and call themselves an accountant. But if they’re not a Chartered Accountant, you’re settling for less than the best. CAs bring to the table an unmatched CV of education, credentials, and professional development forged from a century of experience.
To earn their coveted designation, CAs must first complete a university degree with specific business credits. Those accepted into the provincial programs usually rank in the top of their class.
Indeed, it’s a profession where only the best need apply. Candidates undergo additional courses and training, including working in a recognized training office under the guidance of an experienced CA, all in preparation for the writing of the Uniform Evaluation (UFE), the toughest qualifying exam in the field.
In addition a CA must have in excess of two years public practice experience working with a diversity of clients and engagements to round out their exceptional educational training – making CAs the only profession truly suited to the public accounting role.
And a CA’s work does not end there. Continuous upgrading of skills, often requiring additional courses, is part of the profession’s commitment to lifelong learning.
More important, specialization in various sectors – such as retail, hospitality, or agriculture – give accountants a depth of business knowledge rarely found with other advisors. Accountants sit down with their clients, map out options, plot courses of action, and explain in a straightforward manner the best path to follow.
It all adds up to experience you can trust, and a professional no entrepreneur should do without.
Brian Callander is a Partner in our Kamloops office of BDO Dunwoody LLP and can be reached at 250-372-9505 or bcallander@bdo.ca.
