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It is extremely important that entrepreneurs understand the difference between Edmonton bookkeeping and accounting so that they know how important it is to have both in their business. As Jim Collins, the author of 6 books including good to great says “great vision without great people is irrelevant”. The hiring both a bookkeeper and an accountant in their business, entrepreneurs can increase their chances of succeeding. Industry Canada says that 50% of all entrepreneurs fail within 5 years, and 29% of those entrepreneurs say that they failed because they ran out of money in their business. An accountant can help business owners plan their taxes so that they pay minimal taxes and help them with business planning so that they can have a solid plan in place to help them grow. While accountants can help business owners have interim financial statements in their business so that they can make great financial decisions.

By being disorganized with their finances, entrepreneurs can file their taxes late and because of those trigger penalties in their business. When entrepreneurs do not have their finances in order when they bring their information to their accountant, it can take the accountant extra time to sort through and organize, which means that business owners can risk paying their taxes late. When Canada revenue agency is owed money by a business owner, and they file late, the CRA will assess penalties to them.

Another way that being Disick organized can significantly impact the small businesses, is if Canada revenue agency sends out an audit letter to the business in the mail. Entrepreneurs have 30 days from the date on the letter to respond with audited financial statements. If they do not already have organized finances, it could take an accountant far more than the 30 days in order to get audited financial statements. By utilizing Edmonton bookkeeping, business owners can have financial statements prepared every month, that if they get an audit letter from Canada revenue agency, their accountant will be more likely to have audited financial statements within 30 days.

It also ends up costing entrepreneurs more if they are disorganized and file their year-end with their accountant. The reason for this, is because it takes accountant far more time to prepare the financial statements for their fiscal year-end, which ends up taking additional time that they bill out for. If entrepreneurs are able to use Edmonton bookkeeping, they can have prepared financial statements each month that can then be delivered to their accountant that can help them prepare they’re year-end much easier.

By utilizing bookkeepers, entrepreneurs can stay more organized which can allow them to file their taxes on time and avoid penalties, help them save money when it comes to filing their year-end, and help them respond much sooner to an audit request from Canada revenue agency. For all these reasons, business owners should always ensure that they hire both a bookkeeper and an accountant in their business.

If entrepreneurs are trying to save money in their business, they should ensure that they are not trying to save money by only hiring an accountant instead of an accountant as well as Edmonton bookkeeping. Having both professionals are extremely important to entrepreneurs in order to have all of the right financial information they need throughout the year to make great financial decisions. 50% of all Canadian businesses fail, and only 11% of those seek professional help. Business owners that have both an accountant and a bookkeeper will have a lot of professional help that can help them become successful in their business and avoid fiscal problems.

One of the ways that business owners can benefit from utilizing Edmonton bookkeeping, is to be more organized throughout the year. This is extremely important because when entrepreneurs have someone helping them through their monthly financial statements, they are less likely to lose important receipts, and remember what each receipt is for. If they wait to year-end to do this, chances of them not only losing receipts but forgetting what the receipt was used for is significant.

Another way that business owners can benefit from utilizing Edmonton bookkeeping, is by getting regular interim financial statements. By having a monthly balance sheet and monthly income statement, an entrepreneur can stay on top of their finances and make better financial decisions. For example, if the business owner sees that the revenue in their business is dropping, they can go on and create some revenue-generating activities that can help them increase that revenue. If they see that their expenses are starting to creep up, they can look at their interim balance sheet and see what expenses can be cut.

By learning how to read both the balance sheet and the income statement, business owners can see how much money they have in their business, which can help an entrepreneur understand how much money they have to pay themselves. If they are depending only on their bank balance in order to make these decisions, they do not have the complete picture. The balance sheet will show how much money the business owner has once all of the payments clear, and while a bank balance will only show a business owner within the bank currently. If there a payment schedule to come out that have a, it, business owners may think that there is more money in the account then there actually is.

By utilizing Edmonton bookkeeping, business owners can stay more on top of their finances, so that they know they need to increase their revenue, cut their expenses, if they have enough money in their bank to buy assets or hire people. All these things are extremely important, and business owners should make these financial decisions with the right knowledge at their disposal. If they do not look at their finances as they make these decisions, they may end up making the wrong decision, which could great significant financial hardship or even cause them to go out of business.