Do you need a bookkeeper or an accountant?

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1 TREE 1 WORKSHEET Are you a sole proprietor? Do you intend to remain a sole proprietor? Do you have fewer than 10 employees? Are annual receipts below $1 million? Is the purpose of your business to provide an income for just you and your family? Do you consider your business to be a lifestyle choice? Do you have kids who might one day take over the business? Are they too young to worry about this today? Are your receipts and payables just a bit too hard to process using software like QuickBooks? Are your taxes just a bit to hard to be comfortable with TurboTax? Have you avoided, or minimized, mingling of your business and personal expenses? Is this a business you ll one day sell, but you re too young to think about that now?

2 STICK WITH A BOOKKEEPER Your operations are straightforward enough that a bookkeeper with experience filing business taxes can manage both your business and personal finances. Tree 1

3 TREE 2 WORKSHEET Do you employ more than 20 people? Does your partnership include a money partner who sources funding and exclusively handles the financial aspects of the business? Are annual receipts above $4 million? Are you spending more than 10 hours a week entering receipts and payables into spreadsheet programs? Are your partners also spending significant time with accountancy tasks? Is there some mingling of business and personal expenses for one or more partners? Will the business be fore sale, or transition to younger partners, in the next 15 to 20 years?

4 HIRE A JUNIOR ACCOUNTANT: You need a numbers person who can help grow your business Tree 2

5 KEEP THIS FUNCTION IN HOUSE Tree 2 Tree 3

6 TREE 3 WORKSHEET Are any of the principals spouses acting as silent partners or active partners? Does your partnership include a money partner who sources funding and exclusively handles the financial aspect of the business? Does the business employ more than 100 people? Are annual receipts above $10 million? Is there significant mingling of business and personal expenses for one or more partners? Does the business have a share structure? Do family members of the partners hold significant shares? Do any of the partners children work in the business? Is there risk of any partners getting a divorce? Are any partners currently in divorce proceedings? Will the business be fore sale, or transition to family members or younger partners, in the next 5 to 15 years?

7 HIRE A FORENSIC ACCOUNTANT With experience in business valuation. Regardless of whether divorce is uncontested or acrimonious, ensure divorcing parties are treated fairly and compensated for value they brought to the business. Tree 3

8 HIRE A SENIOR ACCOUNTANT: You can still use an outside firm, but you need someone with skill sets and centres of influence beyond cash management. Make sure the firm you work with has top-notch lawyers and estate planners to ensure your business wealth is structured for future generations and protected from excess taxation. Tree 3

9 TREE 4 WORKSHEET Are annual receipts above $15 million? Will the business, even if it passes within the family, continue to be run by existing managers?

10 BRING THE BUSINESS ACCOUNTANCY FUNCTION IN-HOUSE and work with a CPA, lawyer and potentially a CFA on your personal finance and estate plans. You need skilled numbers people in play at all times. Tree 4