Every business requires industry-specific accounting and bookkeeping; and everyone needs a personalized approach suitable to their situation. As a Metro Vancouver accountant and provider of small business accounting and bookkeeping services, we recognize those realities and work with our clients to ensure they have the customized solutions needed for optimum results. Our approach relies on careful planning and implementation of proven principles, based on three variables:
- Current Status
- Your Goals
What’s your current situation? Are you trading dollars for time or are you trading dollars with lifestyle? Do you need to do a lot of the work yourself to save money, or do you wish to delegate work and spend more time building your business, or enjoying a rewarding lifestyle? Have you done a SWOT (Strength Weakness Opportunity Threat) analysis? We’ll help you find the answers to these questions, so that we can create an effective accounting and bookkeeping system that suits your needs.
Each industry has unique aspects. Often the variations will be in areas such as billing cycles, sales methods, or production and manufacturing processes. But no matter what your industry, a common ingredient is people. When your people have effective systems to support their efforts, you can create a positive, unified team dedicated to the success of the company. We leverage our accounting and bookkeeping expertise to build those systems into your business, so your workforce can perform efficiently and profitably, eliminating the stress and confusion that impacts the bottom line.
What are you trying to accomplish? Are you trying to expand your business, or reduce your workload? Do you already know the strategy you want to implement, or are you looking for guidance and advice to create a long-range plan for your business/investment portfolio? We’ll help you answer those crucial questions and find solutions that not only meet your budget, but also fit in with your philosophy, and help you manage a healthy work/life balance.
Let’s look at some examples of how Murji, Yim & Associates helps clients in various industries:
- Professional Practices
- IT Professionals
- Sole Proprietors and Small Partnerships
- Real Estate and Construction
- Manufacturing/Service Industry
- Case Studies
Most successful professional practices are incorporated, with some elements of family trusts and perhaps investment corporations, as they tend to generate additional cash that can be reinvested for future passive incomes. Often those in professional practice hire a bookkeeper, but many rely on a spouse or combination receptionist/bookkeeper to help with the bookkeeping in the early years. While this solution can be a cost-effective way to get started, as the practice grows and profits increase, the expertise offered by our Vancouver accountants and bookkeepers can identify additional ways to maximize efficiencies and return on investment.
MD’s and specialists, generally, are better off to have their receptionist do their billing for them unless they are paperless. Then it can be a good idea to set up a system so that the accountant looks after all their routine payments to CRA – no missed deadlines and no penalties.
Dentists lean to having a good billing and appointment system with collection duties handled by the insurance companies. Some of the larger dental offices tend to have a full-time bookkeeper. However, the additional insights offered by our small business accountants and bookkeepers are helpful when analyzing their KPI’s (key performance indicators) and running their business.
Lawyers tend to have a good trust accounting system. Nevertheless, if they are combined with an accounting system such as those we have created for legal clients, it eliminates many of their administration headaches.
Engineers are likely to work in firms with strong systems in place. However, we encourage a careful analysis of the administration workflow, to make sure processes are in place so that all deadlines to CRA are met and they do not pay penalties.
IT Professionals are apt to have consulting contracts, or are freelancers, unless they are part of a larger IT firm. Typically they are better off to farm out their bookkeeping and accounting work, especially as the realities of the industry can put significant demands on their time due to deadlines or release dates. This allows them to put their full attention on the IT aspects of the business and still maintain a healthy lifestyle, with time to recharge mental batteries and spend time with family and friends.
Sole Proprietors and Small Partnerships
Sole proprietors and small partnerships are a key focus for Murji, Yim & Associates. We are able to provide them with a host of accounting and bookkeeping services to deal with payroll, taxes, and forward planning. We also help with referrals to bankers, legal professionals, and other professional services as needed.
Real Estate and Construction
In this sector it’s important to distinguish between real estate and construction as a business or an investment.
Developers buy land as inventory. They may rezone it, subdivide it, build on it, or sell it prior to building on it. It’s crucial to be careful with their legal liability and home builders’ warranties ahead of tax issues. Depending on their goals, developing an organization structure is an effective tool for maximum results.
In comparison, long-term investors will buy rental properties of various sizes and rent them out. One needs to look at the source of their down payments to come up with an organization structure. Prior to purchasing or selling a property, it’s good practice to determine tax consequences and ensure the filing of proper paperwork with the Canada Revenue Agency.
Construction companies have many headaches and challenges. Cash flow is particularly troublesome, as they are billed and payments are made based on progress billing and holdbacks. One needs to be very careful of policies and aware of potential risks. Depending on the contract and progress milestones, carrying expenses while waiting for holdbacks can render a whole project unprofitable.
A key component in the manufacturing industry is automation, as Canada is a high cost producer. Alternatively, many manufacturers focus on creating custom or niche products. It’s not uncommon for manufacturers (and service industries) to have a bookkeeper as they are in need of ongoing payables, receivables and collection services. In terms of the administrative, accounting, and bookkeeping processes, it’s necessary to analyze how they currently perform. Typically, streamlining and efficiencies can be identified. A key accounting procedure for these industries is to ensure a strong system for meeting all deadlines with CRA and WorkSafeBC are met, as the penalties are stiff. It is also prudent to do quarterly financial statements so that the accountant can check on the bookkeeping and prepare key operating ratios. This helps management understand and track the direction of their business so changes can be implemented as required.