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Business owners need to understand how important having an accountant in their business is along with Edmonton’s bookkeeping. While many entrepreneurs believe that the 2 professions do the same thing, this is not true. They both work on the finances of the business, but an accountant takes care of the year-end financials and helps a business owner do some planning for their business as well as tax planning to help an entrepreneur save money, meanwhile, a bookkeeper helps business owners organize their finances in their business on a short-term basis, they can help them stay organized and understand the finances of their business. Since half of all Canadian entrepreneurs fail before their in business 5 years, and only 11% seek professional help, business owners should consider their financial team of bookkeepers and accountants as a vital part of their business’s success.

One of the most important things that having Edmonton bookkeeping can do for entrepreneurs, is to help them understand how much money they have to pay themselves. By looking at well organized and easy to read interim balance sheets and income statements, entrepreneurs can see how much revenue they have, the expenses and profit of their business that can help them understand how much money they have in their business and if they can start paying themselves. If an entrepreneur sees that their revenue needs to be increased in order to take a paycheck, they can go out and generate revenue themselves so that they can avoid running into financial problems when they take dividends out of the company.

Another way that having great interim financial statements can significantly help business owners, is by ensuring that a business is expenses are being maintained. By looking at the income statement that is provided by Edmonton bookkeeping, entrepreneurs can see the revenue of the business, the cost of goods sold, the expenses and profit of the business. A well-organized income statement will be easy for an entrepreneur to read and is listed the expenses in numerically dissenting order. This way, the most significant expenses are at the top of the list. If a business owner wants to minimize expenses, spending most of their time minimizing expenses at the top of the list will be the most beneficial to entrepreneurs. Without getting these financial statements from their bookkeeper, business owners may not know what expenses they need to spend their time on.

By allowing Edmonton bookkeeping to help them with their finances, business owners can ensure that they are organized and have the most accurate financial information that they can give to their accountant when it comes time for year-end. Without this organized information, it will take their accountant more time to organize their year-end statements, which will cost the business owner more in accounting fees.

It is extremely beneficial for entrepreneurs to utilize both their accountant and bookkeeper at the same time because they will work as a team in helping a business owner ensure that they are taking care financially of their business, which can help them increase their chances of success in business.

Since half of all Canadian entrepreneurs close their business before being in business for 5 full years, entrepreneurs need to understand that by hiring Edmonton bookkeeping can significantly help them avoid that fate.

One of the most significant ways they can be helped is by being more organized in their business finances. Edmonton bookkeeping will organize the business receipts, Accounts Receivable and accounts payable, and help the business owner have accurate up-to-date information. When they go to file their year-end taxes with their accountant, they will already have organized financial statements that the accountant can utilize to get the year-end done efficiently and on time. If an entrepreneur is not using their bookkeeper, an accountant will have to organize all the financial information, which not only takes a significant amount of time but can risk a business owner not filing their year-end statements on time which can cause penalties from Canada revenue agency.

If business owners are disorganized, if they have been to get an audit letter from the Canada revenue agency, they will only have 30 days from the date of the letter to respond with audited financial statements. If an entrepreneur has interim financial statements from Edmonton bookkeeping, their accountant will most likely be able to provide audited financial statements by the deadline. If an entrepreneur does not have organized financial information, business owner accountant may not be able to get audited financial statements by the deadline.

If entrepreneurs do not respond to the Canada revenue agency’s audit letter, business owners risk getting assessed whatever taxes CRA deems appropriate. Business owners can avoid this fate simply by hiring Edmonton bookkeeping to manage their finances during the year.

Another way that hiring Edmonton bookkeeping can help entrepreneurs is if their finances are being organized throughout the year, and a business owner has interim financial statements each month, taking that information to the accountant can ensure that the accountant is able to file year-end financial statements more efficiently, which can end up saving an entrepreneur lots of money. If an accountant has to organize those year-end financial information, the business owner will likely get charged by the accountant at the accountant for every hour that they have to spend on that file. The hiring a bookkeeper, business owners will have a much lower rate than they have to pay, which helps them save money.

It is very important that entrepreneurs hire both a bookkeeper as well as an accountant as part of their financial teams that they can keep their finances organized, and save money. When entrepreneurs are working on their finances, they need to be hiring both a bookkeeper as well as an accountant, because 50% of all Canadian entrepreneurs close their business, and 29% said that the reason why they close their business is that they ran out of money. Having a great financial team to work with, business owners can avoid that fate.