We encounter questions like these every day. As professionals in providing business solutions and enhancing your business success, the team at SCP is eager to respond to your questions.

2. What is the purpose of a financial statement?

While in the past business managers viewed financial statements as unavoidable, today's economy makes them a necessary business tool. A financial statement does more than just provide a synopsis of your business performance. An independently prepared financial statement can assist you in obtaining financing from banks and other credit sources; assessing the profitability and financial strength of your business; and maximizing the value associated with the purchase or sale of your business.

3. Why use SCP as your tax advisor?

As in any profession, issues that are more complicated require more expertise. Taxation is a complex issue and tax accountants are specialists. SCP develops plans to save businesses money and provide growth opportunities. Why is tax so complex?

• Tax laws are constantly changing as a result of annual, federal and provincial budgets
• Industries have specific compliance requirements
• New tax bulletins, case law and legislative amendments are never ending

4. What other tax services does SCP provide?

A tax specialist is key to the success of your business operations and can assist in your personal financial success as well. The following are some of the services SCP provides:

• Personal and corporate tax planning
• Wills and estate planning
• Family trusts
• Succession planning

5. Why is a business plan important?

Every successful business has a business plan. It provides you with a road map of your business growth and direction; as well, it can be instrumental in:

• Obtaining financing to purchase a business
• Financing the expansion of your existing business
• Obtaining government-assisted financing

6. Do I need a business advisor to sell my business?

Selling a business requires specific expertise for a successful transaction. Business advisors have that expertise. SCP has extensive knowledge and experience in buying, selling and restructuring businesses. We will identify suitable purchasers and negotiate the highest price.

7. How does a manager/owner-manager maximize shareholder value?

It is critical for a business' financial success and future growth for managers/owner-managers to maximize shareholder value. Strong managers are focused, future-oriented and have a clear vision for where they are taking the business. Key factors to consider:

• Have a clearly-defined strategic plan focused on long-term success
• Share the strategic plan and vision with your organization
• Understand how to create value
• Concentrate on areas that potential purchasers will consider while making acquisition decisions

8. What are some of the common problems associated with family-owned businesses and how can they be resolved?

Family-owned businesses face extra challenges beyond the universal ones other businesses face. The constant interplay of family dynamics and personal issues can interfere with successful business operation. Some of the things that cause these problems are:

• No formal plan for leadership succession
• Inter-generational strain from either an older generation that doesn't share responsibility or a younger one that wants to take over the business too quickly
• Family members outside the business interfering
• Competitiveness between siblings for leadership positions
• Concern about wealth tied up in the business
• No clear rules on how compensation relates to contribution

The good news is that you can be a successful family-owned business. Whatever the situation, there are solutions. Implementing some of the following key strategies can help alleviate and resolve the problems associated with family-owned businesses.

• Look for root causes
• Do not view problems in isolation
• Solve problems with lots of involvement
• Make solutions explicit
• Create mechanisms to maintain balance
• Know when to get help

9. How can I better prepare for the audit process and make it work for my business?

Business owners/managers are busy running the business and too often audits are overlooked. An audit can be extremely useful in the overall successful operation and growth of your business. Do not wait until the auditors are at the door; prepare yourself in advance and incorporate the value of the audit process in the whole of your business operation. Follow these important steps:

• Maintain regular contact with your business advisor throughout the year
• Introduce your business advisor to key individuals within your organization
• Provide your business advisor with information about your entire operation including product lines, customer base, suppliers and risk factors for your industry
• Share your strategic plan with your business advisor