It’s no secret that starting a business is tough—but the numbers in Canada show just how challenging it can be. According to Innovation, Science and Economic Development Canada (ISED), only about 62% of small businesses with 1–4 employees survive five years. By the ten-year mark, survival drops to just 44%.
That means more than half of Canadian small businesses won’t make it to year ten.
• Cash Flow Struggles – Many businesses don’t fail because they aren’t profitable—they fail because they run out of cash. Without proper forecasting and planning, unexpected expenses or slow-paying customers can create a financial crisis.
• Underestimating Costs & Taxes – Hidden expenses, seasonal shifts, and tax obligations catch many owners off guard. When funds aren’t set aside, businesses can quickly fall behind.
• Weak Financial Visibility – Without timely bookkeeping and reporting, business owners may not know which products or services are actually profitable. Decisions end up being made on guesswork instead of reliable data.
• Scaling Without a Plan – Growth is exciting, but expanding too quickly without the right financial systems often leads to over-leveraging and operational stress.
At TandemBooks, we believe that strong bookkeeping is morethan compliance—it’s survival.
By keeping financial records accurate and up todate, we help business owners:
• Spot financial warning signs early
• Understand their true profitability
• Plan for taxes and future expenses
• Make informed, confident business decisions
Canadian small businesses are the backbone of our economy, but the survival rates are clear: many won’t make it without strong financial practices. With the right bookkeeping partner, owners can move from uncertainty to clarity—and improve their chances of being among the businesses that thrive well past the 10-year mark.
Ready to take control of your business finances?
Book a consultation with TandemBooks today and let’s talk about how we can help you strengthen your financial foundation.
