Canada’s westernmost province has more than its share of small businesses. In BC fully 44.3% of ALL jobs are provided by small business. Large business provides 38% of jobs. The trend to smaller businesses seems related to the declining importance of forestry and mining.
Being a long way from Ottawa probably contributes to fewer public sector jobs, forcing British Columbians to be somewhat more self-sufficient than their counterparts in central Canada.
So what impact does the importance of the small business sector have on the way that CPAs operate their accounting practices?
Clearly our small business clients need primarily compilation and tax compliance services. Assurance work is not generally required for very small companies. In speaking to established practitioners, even their larger clients don’t need or want assurance work done.
For our part we work with small technology companies and provide specialist SR&ED (“scientific research & experimental development” tax credit) services to other CPA firms and larger tech companies.