A Startup Canada podcast hosted by Dr. Sean Wise
Bob Gauvreau is the founding partner of Gauvreau & Associates CPA, a firm that works with entrepreneurs to help them grow their business, increase profits, and pay fewer taxes. Gauvreau & Associates has been recognized as one of Canada’s fastest growing companies.
“People should know that working with a good advisor can make your life easier,” says Bob. “They can provide you the advice and guidance you need to take your business to the next level.”
Apart from his advisory work, Bob has also won many awards such as the alumni leadership award in 2017 recognized by Trent University and the entrepreneurship award in 2009 from the chamber of commerce. He is a partner at Venture North, which is a 40,000 sq ft. entrepreneurship incubation facility in Peterborough and a founding member of StartUp Peterborough. Besides that, Bob is the vice-chair of the city’s 2018 United Way campaign and a founding member of the H.O.P.E charity.
In this week’s #FinancePodcast, host Dr. Sean Wise talks to Bob about finding the right advisor for your SME and other tips on how to effectively manage your personal finance.
The right advisor for your business can make a world of a difference. Relationships that are built on trust and guidance give your business the strength it needs to grow and be nurtured.
Bob Gauvreau works with entrepreneurs to help them grow their business, increase profits and pay fewer taxes. As the founding partner of Gauvreau & Associates CPA, Bob is passionate about working with entrepreneurs as an advisor and the positive effects that this relationship has on them, and their business.
What do you recommend to people when they are choosing a trusted advisor for themselves?
BG: One thing to look for is people who have a focus and experience in the area of business that you are in. You want to be able to trust them and work with someone who can communicate well. Find someone who will be proactive and who gives good direction to move you forward, instead of only dealing with the past. Personally, I like to know that myself and my client are on the same page.
Imagine you are approached by a new entrepreneur who is getting ready for tax season. Where is the real starting point? What are the records and documents that entrepreneurs should be aware of in order to be well prepared?
BG: Good question. The answers to this are different depending on what type of organization you identify as. For example, if you are a corporation, then bookkeeping and reconciliations have to be completed. You have to ensure that you have a balance sheet, which are things like accounts receivable, inventory liability and accounts payable. If you are a proprietorship or a partner, you will need to report on things like income and the expenses related to your business.
In the old days, an accountant’s worst nightmare was the client who comes in days before taxes are due, with their shoebox full of receipts. What is the modern-day equivalent? What are people expected to do to prepare?
BG: We sometimes still see that shoe box. Certainly from an SME and startup stand-point, if you are looking at setting yourself up for success, applications like QuickBooks online would be a strong tool to use. In order to make quality decisions, it is so important to have a financial scoreboard in front of you to see where you and your business are at. This scoreboard is one of the largest points of success for small business owners.
What are the services that accounting firms, like Gauvreau and Associates, can provide to first-time founders and entrepreneurs during their first and early years in business?
BG: One of the first things that we do when we begin working with a new business owner is we prepare a budgeted income and loss and cash flow statement to show the business owner exactly what it is that they need to do to realize their financial targets and to ensure their success. And in doing this, we outline a success path so they can see where they are along the way and to ensure that they get the results they want.
What are tax season best-practices entrepreneurs must know?
BG: From day one, it is certainly a good idea to set up and learn to use a bookkeeping software or a cloud-based tool, like Quickbooks. I think in advance, entrepreneurs need to outline what they want their personal income to be because there are differences between business taxes and personal taxes. If you can minimize the income you want to retain personally but maximize your business income, there is a major opportunity to lower your tax rates. So, in other words, planning in advance and looking forward can help you and your business reach success faster.