Even if an entrepreneur but decides to hire Edmonton bookkeeping in order to help them keep their finances straight, business owners should also work to ensure that they are still being organized in their business in order to make keeping their finances straight much easier for their bookkeeper. By being organized, and getting bookkeepers what they need to complete their jobs easily, entrepreneurs are ensuring that there able to get timely interim financial statements that are more accurate, so that they can use those financial statements in order to guide their business decisions easier.
There are several things that entrepreneurs need to keep in mind in order to keep their finances organized for their bookkeeper. The first thing that entrepreneurs often ask, is do they need to keep all of their receipts and give them to their bookkeeper? The answer to this question is yes entrepreneurs need to keep all their receipts, however, they do not need to give all of those receipts to Edmonton bookkeeping. Seeing copies of bank statements are often good enough for bookkeepers, however entrepreneurs need to know that they should keep all receipts for seven years in case they get audited by the Canada revenue agency at which point they will definitely need to produce the receipts.
Something else that entrepreneurs often ask when they have someone doing their bookkeeping for them, is do they need to have multiple bank accounts? Even though many entrepreneurs think that having multiple bank accounts ensures that they stay organized, Edmonton bookkeeping says that the more bank accounts that a business owner has actually make it more difficult to stay organized because it is harder to keep track of all the various transactions. Entrepreneurs actually only need one bank account that they use for all operating expenses, and then a credit cards that they might have one or two one for the business and one for an additional employee or spouse.
Another question that entrepreneurs often have when they hire a bookkeeper for their business, is do they actually need to speak with their bookkeeper on a regular basis? While a lot of entrepreneurs believe that they are too busy for this, the recommendation is actually for entrepreneurs to speak very regularly with Edmonton bookkeeping, in order to have a conversation about the statements they receive. The bookkeepers might have questions, or want to point out anomalies or get clarification. An entrepreneur may have questions as well for the bookkeeper or to ask what certain reports mean or to verify if there is anything missing. Entrepreneurs need to understand that it is vital in order to have correct financial statements, and if it is done on a regular basis, it does not have to be that time-consuming. By scheduling it biweekly, entrepreneurs can ensure that whatever is scheduled gets done and that they can use that to have the proper information to use those interim financial statements to the benefit of their business.
Industry Canada says that 50% of all Canadian entrepreneurs fail by year five in their business, and 29% fail because they ran out of money, if entrepreneurs hired Edmonton bookkeeping to work in their business, they could potentially have the information to help them avoid running out of money in their business. However, no matter if they have a bookkeeper or not to help them with their finances, business owners still need to be organized, in order to help their bookkeeper have the right information in order to provide the most accurate statements possible.
There are many things that entrepreneurs should keep in mind to be organized so that their bookkeepers can work efficiently for them. The first way that entrepreneurs should be organized, is that by organizing all of their receipts, bank statements and credit card statements can help entrepreneurs give the right information over to Edmonton bookkeeping, so they can work on the files. If they hand over a giant box where the receipts are all disorganized, and bookkeeper has to hunt to find information, their way to spend more time trying to organize then they are keeping books.
Another way that entrepreneurs can be organized in order to ensure keeping things easy for Edmonton bookkeeping to work on their books, is to jot down notes whenever possible so that bookkeepers know what account to post expenses to. For example, business owners might not have to write that the receipt from A&W was a business meal, but they might have to clarify for example that a charge from Amazon was for. For example, was it an employee or vendor gift, materials for their products, shipping supplies or office supplies? When entrepreneurs stay organized with notes, their bookkeeper can ensure that they are posting things to the right account, which makes all of their bookkeeping much more accurate.
When entrepreneurs are sending information off to their bookkeeper, what they should understand is to have information to Edmonton bookkeeping biweekly. This will allow entrepreneurs to get statements in return biweekly, so that they can have the best financial information on an interim basis. This is especially good for entrepreneurs that pay their staff biweekly, so that entrepreneurs can see how much money they have in order to pay their staff. If they’re trying to get information to their bookkeeper every week, they may find that that is too short a time for a bookkeeper to do anything worthwhile, but doing it every month has too much information to keep straight, and can force a bookkeeper to work too long and not have up-to-date financial statements. An entrepreneur should also ensure that the end of the month should be a time dedicated for the business owner to strategize for the next month, not catch up on finances, or starts to understand their bookkeeping.
By being organized in business, business owners can make things easy for Edmonton bookkeeping to do their interim financial statements, and the easier time they have doing them, the more accurate they will be.