At ME Consulting Inc, we understand that launching a new business is both exciting and overwhelming. With a to-do list that feels never-ending, it’s easy for financial planning to fall by the wayside. However, setting up your finances correctly from the very beginning is one of the most important steps you can take to build a strong, successful business.
Whether you’re starting a side hustle, taking the leap into full-time self-employment, or launching a new corporation, here are the essential financial steps to take when starting your business.
Choose the Right Business Structure
Your business structure lays the foundation for your operations, taxes, and liability. In Canada, your main options are:
- Sole Proprietorship – Simple and inexpensive to set up, but you and your business are legally the same entity.
- Partnership – Like a sole proprietorship, but shared between two or more individuals.
- Corporation – A more formal structure that separates you legally from your business, offering added protection and tax planning advantages.
Many businesses begin as sole proprietorships and choose to incorporate later as their income or liability grows. Our team at Me Consulting can help assess your situation and determine the structure that best aligns with your goals.
Register With the CRA
Based on your business structure and operations, you may need to register for:
- A Business Number (BN)
- GST/HST if your revenue exceeds $30,000 annually
- Payroll accounts if you’re hiring employees
- A WSIB account if required in your province or territory
We help clients understand and complete the necessary registrations to ensure full compliance from day one.
Open a Separate Business Bank Account
Even if you’re operating as a sole proprietor, it’s important to keep your business and personal finances separate. This not only simplifies bookkeeping and tax filing but also enhances your business’s credibility.
We regularly assist clients in selecting business banking solutions that work best for their financial needs and goals.
Set Up a Bookkeeping System
From the very first transaction, it’s essential to track your income and expenses accurately. Whether you’re managing finances yourself or outsourcing them, maintaining organized records will save you time and reduce errors.
Me Consulting offers full-cycle bookkeeping services, as well as support in setting up DIY software solutions or spreadsheet systems. Whatever your needs, we have a solution to help you stay on track.
Create a Realistic Budget
A strong financial plan begins with a realistic budget. This should include:
- Startup costs such as equipment, software, and licenses
- Ongoing monthly expenses
- Revenue goals and your break-even point
We also recommend building a contingency fund to help manage unexpected expenses and give you peace of mind. Our team can help you build a budget that reflects your goals and supports your success.
Understand Your Tax Obligations
Every business has tax responsibilities. Depending on your structure, you may need to pay:
- Income tax (via personal return for sole proprietors; corporate return for incorporated businesses)
- GST/HST
- Payroll deductions
- Provincial or territorial levies and fees
Our advisors help ensure you’re meeting your tax obligations while taking advantage of any available deductions or credits.
Schedule Regular Financial Check-ins
Financial check-ins should become part of your business routine. Reviewing your finances monthly or quarterly helps you stay informed and in control. Ask yourself:
- Are we profitable?
- Where is our money going?
- Can we afford to invest, grow, or hire?
Developing this habit early will serve you well as your business grows.
Starting a business isn’t just a leap of faith—it’s a strategic decision. With the right financial setup in place from the start, you’ll be better prepared to grow, adapt, and succeed.
If you’re starting a new business and need help getting your financial systems in place, reach out to ME Consulting Inc. We specialize in helping entrepreneurs build strong financial foundations with clarity and confidence.
