A common scenario when entrepreneurs are hiring Edmonton bookkeeping services is that in order to save money, an entrepreneur hired a bookkeeper they found on Kijiji. Afterward, they did not hear from their bookkeeper for six months, an entrepreneur prepaid them for their hourly services only to find out that their bookkeeping was rushed and their accountants have to redo most of the work the bookkeepers did. This is an extremely common scenario, and unfortunately, it is unavoidable one the hiring the right bookkeeper in their business. Business owners should keep several things in mind when they are hiring professionals to work on the finances in their business.
One of the first things that entrepreneurs should keep in mind when hiring Edmonton bookkeeping services in their business, is that if they are making their decision based on price, they might end up paying more later on in their business. The reason for that is, and expensive bookkeepers may also be inexperienced, or are just not very good which is why they do not cost very much. Business owners do not get interim financial statements, and if they do their extremely wrong, and that at their year-end, their accountant has to charge them twice as much in order to redo the work the bookkeeper did. That ends up making the business owner have to pay for the bookkeeping, but as well their accountant a much higher rate to fix those errors.
Another way that hiring Edmonton bookkeeping services based on low price often backfires on entrepreneurs, is if entrepreneurs ever do get financial statements from their bookkeeper, it is usually wrong. If business owners make financial decisions based on those interim financial statements, they may be well-intentioned in using that information to make financial decisions, but no matter how good they think they are deciding, if the information in those statements is wrong, it could end up with a business owner making a poor decision that could end up creating financial hardship for the business, or easement forcing them to run out of money in their business. Another one of those outcomes is worth trying to save money on bookkeeping by hiring an inexpensive bookkeeper.
Instead, Edmonton entrepreneurs should be hiring the best bookkeeper for their business, based on skill, frequency of the financial statements and communication. Even though the bookkeeping industry is not regulated and there is no governing body dictating who can call themselves a bookkeeper, business owners need to be extremely prudent when hiring Edmonton bookkeeping services for their business to ensure they get the most knowledgeable bookkeeper they can find. They should ensure that they are asking those bookkeepers how much experience they have, and what the nature of their experience is.
The hiring the right Edmonton bookkeeping service for their business, entrepreneurs can be certain that they have the information they need in order to make important financial decisions in their business, and that they will not have to pay their accountant extra money to fix what those bookkeepers should have done correctly in the first place.
Without putting much thought into it, entrepreneurs may not realize how important the decision to hire the right Edmonton bookkeeping service is for their business. Since 50% of all entrepreneurs in Canada end up failing, 29% of those failed entrepreneurs say the reason why they failed is because they ran out of money. Hiring the right bookkeeper can help business owners avoid that fate, because bookkeepers will be tasked with getting current and correct interim financial statements to entrepreneurs.
In order for entrepreneurs to avoid running out of money in their business, every time they make a financial decision, they should consult their balance sheet and income statement in order to ensure that it is a prudent financial decision. For example, if there going to run payroll, they should review their interim financial statements to ensure they have enough money in order to do that. They may discover that they do not, which allows the entrepreneur to have enough time to generate more revenue in their business before payroll is dispersed. Without reviewing their financial statements, they could end up in a huge problem by bouncing payroll, and grading even worse problems for their business.
Since great Edmonton bookkeeping services are so vital to entrepreneurs, you should be aware of how to hire a great bookkeeper in their business so that they can be assured that whenever they need to make financial decisions in their business, they have the best information at their disposal. One of the first things that entrepreneurs should do is ask potential bookkeepers that there hiring how much experience they have. It is not important to know exactly how many years of experience they have, but also the nature of their experience. Was it full-time, part-time, working from home, or in a public accounting office? These all speak to the level and depth of experience that Edmonton bookkeeping services have.
Another important consideration that business owners need to have when hiring Edmonton bookkeeping services, is how often they are going to be receiving interim financial statements and communicating with their bookkeeper. The hallmark of a great bookkeeper is that they are providing very regular financial statements and communicating with their clients at the same frequency. If when asked the question, bookkeepers are unable to give a clear answer, business owners may choose to keep looking, because it should be at a well thought out answer ahead of time.
In order to hire the best bookkeeper they possibly can for their business, business owners need to be careful, ask a lot of questions, and ensure that they are going to be getting correct financial statements on a regular basis. Great bookkeepers can add a lot of value to a company, and as Jim Collins, the author of six business books has said, “those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology, or competition, or products. It is of one thing above all others: the ability to get and keep enough of the right people.”