Faced with an increasingly demanding economic environment, it’s vital for Canadian private enterprises to employ accounting standards that respond to their needs and the needs of those who use financial statements.
The success of private enterprises requires access to a reliable advisor who understands and values your business by respecting the personal stake you have in its success. “Accounting is a process of recording, summarizing, analyzing and recording of financial transactions of an enterprise.” Accounting is a key function of any business enterprise, it’s often referred to as the “Language of Business”. Business accounting not only helps in making short and long term business decisions, but also helps an enterprise grow and penetrate the market. Proper reporting and accounting practices help maintain the confidence of investors.
Faris CPA can help keep your accounting records stay clean and up to date, ensuring that the results of your operations and statement of financial position are properly reported. We can analyze your balance sheets and calculate profit and loss account ratios to assess the performance of your business. Through proper reporting and accounting practices, we help you make short term and long term business decisions to help your business grow, maintain investors’ confidence and stimulate economic growth.
FAQS
What are the differences between private and public enterprise?
How are private corporations taxed in Canada?
Private corporations are taxed the same as regular corporations. The profits of private entities are taxed by a favorable corporate tax rate. Shareholders get their dividends and have to report those amounts as taxable incomes. For Canadian Controlled Private Corporations claiming the small business deduction, the total tax rate is around 11.5 per cent at the federal level.
How are private enterprises taxed in Canada?
The Canada’s federal tax system imposes 9% small business tax rate, while the general corporate tax is 28%. On top of this, each province has its own corporate tax system with various treatment for private enterprises.
What are the Canadian accounting standards for private enterprises?
There are two Canadian accounting standard for private enterprises. Private enterprises can choose either Accounting Standards for Private Enterprises (ASPE) or International Financial Reporting Standards (IFRS). The ASPE were adapted from the IFRS published by the International Accounting Standard Board in July 2009.
What is an example of a private enterprise?
A private enterprise is a privately owned business running independently of the government. An example of a private enterprise is a company with sole proprietor like contractors, designers, and technicians.
