Have Canadian finances plateaued?

People might believe that the primary concerns of accounting firm owners are largely contained within the four walls of their office. They have to make sure employees are performing their duties to the best of their abilities, recording all facts and figures correctly and using the right accounting software for small business clients, among other things.

However, as any entrepreneur knows, there are a lot of other factors that go into running a company. For instance, no matter the sector, leaders must take into account the state of the national economy. Even if the business itself is performing well, if a recession is looming, the firm might not be able to hire new workers or rent a secondary location, as inflation and other factors pop up on the horizon.

As such, accounting firm owners in Canada might want to remain tuned into the current financial patterns being seen in the nation. According to a recent Ipsos Reid survey, for many individuals in the country, finances seem to have stalled.

2013 wasn’t a banner year

The Canadian Press reported that the poll found 57 percent of Canadians said at the end of 2013 that they weren’t any better off financially than they’d been in 2012. This figured soared to 63 percent when only taking Quebecers into account.

On the other hand, 38 per cent noted that their economic situations had improved in the previous 12 months, with the most successful provinces being Alberta, Saskatchewan and Manitoba, the source detailed.

« Canadians can take steps toward feeling better by putting a financial plan in writing and perhaps consider it as a new year’s resolution, » Sun Life President Kevin Dougherty stated, as quoted by The Canadian Press.

Why should this matter?

It might not be immediately apparent why accounting firm owners would be overly concerned about these statistics. After all, no matter consumer sentiment, individuals and entrepreneurs in Canada will still need to file taxes later on in the year, so accountants and bookkeepers will most likely remain employed.

But this might also mean that people might be spending less in order to conserve money, which could have far-reaching effects on the economy. Moreover, small business owners might need to hire third-party services to do taxes, as this is often cheaper than onboarding a new employee. As such, firms must make sure they have enough workers on hand during the busy season.

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