CPA Canada makes large strides in clearing red tape
January 29, 2015

There are a few things accounting firm owners dread. As company leaders, they have to worry about the normal unsavory elements like turnover, in-fighting among employees, competition and so on. And then there are the factors unique to the industry, like audits and figuring out how to convince clients that their financial services aren't only useful during tax time.

One of the places where these two types of difficulties meet is in the seemingly uphill battle that is cutting through government red tape. While the government is often a very important resource for company owners of all kinds, lawsuits, confusing or contradictory laws and a system that doesn't enable the swift passage of regulations can be hard to contend with.

However, one industry leader is paving the way in cutting through this tape: Chartered Professional Accountants of Canada.

Reforms make business owning smoother
Thanks to changes made within the Canadian government and business environment during the 2013-2014 fiscal year, business owners were able to save about $75 million in compliance and administrative costs, a recent government Annual Scorecard Report showed. Entrepreneurs were also shown to have recouped time that would have otherwise been spent dealing with regulations.

CPA Canada's role in this was to advocate for standardized business reporting, in order to save costs while benefiting the government. The organization promotes XBRL reporting to improve data collection. The regulatory body plans on focusing on cutting red tape in the area of taxation next.

"There is momentum in the effort to reduce red tape," stated CPA Canada Vice President of Taxation Gabe Hayes. "For continued success, maintaining transparency and accountability is essential."

Regulatory bodies working together
In late November 2014, CPA Canada and the Canada Revenue Agency signed a framework, showing collaboration between the two groups and the Ottawa government. This accord also enabled the creation of seven committees, each made up of representatives from both bodies. 

One of these groups is tasked solely with reducing red tape for accounting firms. 

"Our government is committed to the administration of a world-class tax system, and I am pleased that the CRA-CPA Canada Framework Agreement formalizes an important partnership," noted Minister of National Revenue Kerry-Lynne Findlay.

This new situation stands to benefit professionals across the nation. After all, CPA Canada represents approximately 190,000 workers associated with the industry, or about 90 percent of the nation's public accountants. 

Nexus: G-WEBCD3