Summary
Scotiabank recently introduced its Small Business Banking initiative to Greater Toronto Area. This is a 5 month tour that will include Scotiabank’s Small Business Banking tools, services, and experts, all for the purpose of hoping to give financial advice and strategies to small business owners in the Greater Toronto Area to help their businesses grow. Scotiabank is targeting GTA because Ontario is still suffering from the effects of the U.S. downturn and a slight increase in gas and oil prices, and small businesses being able to prosper in the Greater Toronto Area will definitely help out Ontario’s economic state. The GTA remains an attractive place and expanding business in the area is not a problem because it is a very well-educated and service-oriented economy.

http://www.accountingworld.ca/aw_new_2008_09_23_2.htm

Connections
In order for Scotiabank to fully understand the financial status of the businesses in the Greater Toronto Area, accountants have to prepare different financial statements including balance sheets and income statements. Both of these statements are able to fully identify the business’s assets, liabilities, earnings, and ultimately the financial status of the business. Also, the information Scotiabank obtains from the financial statements can also be passed on to other external users such as credit-rating agencies. Credit- rating agencies give a credit rating of businesses based on how well they are able to pay off their debts. After knowing all the necessary information, this is when Scotiabank experts step in and provide knowledgeable judgments about possible business related events. Accountants will play a big role in preparing financial information to Scotiabank in order for their Small Business Banking initiative to be a success.

Reflection
It is great that Scotiabank is campaigning in such a big project. What this does is it is setting a spark into Toronto and Ontario’s economy. Toronto is a well known place, and being able to prosper the area with small businesses can really make a difference. However, can this little spark in a small area of Toronto help Canada the nation itself? Scotiabank has started something very crucial to our economy, and I think that it is just a matter of time until other banks would follow. A little action in the Greater Toronto Area might be able to bring Toronto out from economic adversity, so maybe a little action everywhere can truly recover Canada from economic slump.

-Clement Ip