5 Questions To Ask Accountant When Starting a Business

Starting a new business is exciting but it also comes with challenges that go far beyond just selling your product or service. Financial setup, tax obligations and compliance can make or break your success. That’s why one of the smartest moves you can make is asking the right questions to an accountant when starting a business. An experienced accountant does more than crunch numbers, they help set the foundation for long-term growth and protect you from costly mistakes.

TLDR

What questions should you ask an accountant when starting a business? Start by asking which business structure is right for you, since this impacts taxes and liability. Next, clarify your tax obligations so you know what to file and when. It’s also important to ask how to set up bookkeeping and manage cash flow from day one to avoid money troubles later. It’s also crucial to separate personal and business finances from day one to keep records clean and simplify tax filing. Finally, ask how an accountant can support your business beyond taxes such as financial planning, budgeting and growth strategies. Getting clear answers to these five questions will help you build a strong foundation for your business.  

1. What’s the Best Legal Business Structure for Me?

One of the first decisions you’ll face is choosing between sole proprietorship, partnership, or corporation. Each has different implications for taxes, liability and long-term planning.

• Sole proprietorship – Easy and inexpensive to set up but you’re personally liable for all debts.
• Partnership – Shared liability and responsibility but disputes can complicate operations.
• Corporation – Limited liability and possible tax advantages but comes with more paperwork and costs.

An accountant when starting a business can walk you through the pros and cons of each option so you choose the structure that matches your goals.  

2. What Taxes Will I Need to Pay and When?

Tax compliance is often where new business owners stumble. Depending on your revenue and activities, you may need to:

• Register for GST/HST.
• File payroll deductions if you have employees.
• Separate personal vs. corporate income.
• Meet specific CRA filing deadlines.

Knowing when a business needs an accountant is crucial, especially since late or missed filings can lead to penalties. An accountant also helps you uncover deductions you may not be aware of, which keeps more money in your pocket.  

3. How Should I Manage My Bookkeeping and Cash Flow?

Bookkeeping may seem small at first but it’s the backbone of your financial health. Proper systems allow you to track expenses, monitor invoices and forecast your cash flow. When you ask an accountant about bookkeeping while starting a business, they can help you decide:

• Which accounting software to use.
• Whether to handle bookkeeping in-house or outsource it.
• How to set up cash flow systems that prevent sudden shortages.

This ensures your finances stay organized and ready for future growth.  

4. How Do I Separate Personal and Business Finances?

One of the most common mistakes new entrepreneurs make is mixing personal and business finances. This complicates bookkeeping, blurs tax deductions and creates unnecessary risks. An accountant can guide you to:

• Open a dedicated business bank account.
• Set up a clear system for expense tracking.
• Use business credit responsibly to build your business credit profile.

Keeping finances separate not only simplifies tax filing but also shows lenders and investors that your business is well-structured.  

5. Can Accountants Help Beyond Taxes and Compliance?

Yes, they’re more than tax preparers. Accountants can:

• Build financial forecasts and budgets.
• Guide you in securing financing.
• Advise on expansion or succession planning.
• Act as a trusted advisor for long-term business success.

A strong relationship with an accountant ensures you’re not just compliant but strategically positioned to grow.  

When Do I Need an Accountant for My Business?

You may only need advice at the beginning, but as your business grows, ongoing support becomes essential. Typical signs it’s time to work with an accountant long-term include:

• Hiring employees.
• Crossing new revenue thresholds.
• Applying for business loans.
• Navigating more complex tax situations.

 

Conclusion

Starting a business is about more than launching a great product or service, it’s about building a strong financial foundation. By asking the right questions to an accountant when starting a business, you’ll gain clarity on structure, taxes and systems that support your long-term goals. At CJCPA, we work with entrepreneurs at every stage to simplify compliance and set businesses up for success.  

FAQs

When to hire an accountant for a small business?

As soon as you begin generating income or face tax filing requirements.  

What can an accountant do when starting a business?

An accountant can guide you through incorporation, set up proper bookkeeping systems and create tax planning strategies to keep your business compliant and financially strong from the start.  

When does a business need an accountant full-time?

Usually once you have employees, higher revenues or more complex financial needs.  

Can accountants help start a business in Canada?

Yes, they assist with structure setup, compliance and financial planning for long-term success.