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One of the reasons why business owners should hire both a Edmonton bookkeeping and an accountant in their business is because the bookkeeper will help entrepreneurs stay organized in their business. This is owners should understand the very different things that a bookkeeper and an accountant do. While the accountant looks of the finances from higher levels, they look to the financial year-end of the business, as well as tax planning and business planning, meanwhile a bookkeeper helps organize financials of a business, and send them interim statements on a monthly basis in order to help the business owner understand what is going on financially in their business on a regular basis.

If entrepreneurs were waiting on the financial statements from an accountant in order to understand what is going on financially in their business, they would be waiting a long time. The reason for that is because, in order to do the year-end statements, business owners wait for their fiscal year-end, and then wait another 6 months before getting their financial statements from their business. By the time they take a look at them, the oldest financial information could be one year to a year and a half old. Business owners cannot wait that long to get financial information for their business. Edmonton bookkeeping on the other hand can give interim statements every single month, allowing business owners who need to make decisions, to have the tools their disposal to make those decisions in the moment. Since half of all entrepreneurs fail within 5 years of owning a business, 29% of those failed entrepreneurs say the reason why they failed was that they ran out of money in their business. Understanding the finances on a more immediate basis can help entrepreneurs make better business decisions more immediately.

When business owners take a look and understand at the interim balance sheet as well as the interim income statement from their business, we can look at them together because they go hand-in-hand. The income statement shows an entrepreneur with them corporation is making a profit, and the balance sheets show the business owners their current financial position. The reason business owners should learn how to read these in order to make financial decisions, is because if a business owner looks at their bank balance, they might be missing out on important information. If they write a check, their balance sheets will show that the check has impacted the amount of money that a business owner has to work with, but the bank statement will not show that check until it has been cashed. Therefore, if the business owner is looking at the bank statements in order to see how much money they can take out of their business, they might decide to take a certain amount out, while not even taking into consideration the check that was written which can cause the check to bounce of the business owner takes up too much money. This is why it is super important that business owners hire Edmonton bookkeeping to look at their finances.

An extremely common scenario that Edmonton bookkeeping and accountants see is that year-end comes around, and entrepreneurs bring giant box or bag of un-organized receipts and for their year-end. If they bring them to their accountant, they will get charged and accountants rate for organizing those receipts, and waiting a long time. By taking them to a bookkeeper first, the bookkeeper can organize them for the accountant, and a much lower rate. This can help entrepreneurs save money by not having the accountant work on jobs that are not something they typically do. If entrepreneurs have their accountant work on their receipts like this, chances are they are going to take longer, which is going to force them to file late and trigger penalties. Ultimately, entrepreneurs should understand that is going to end up costing them more to file their year-end with their accountant if they are disorganized.

If this is owners hired Edmonton bookkeeping more proactively, to work on their finances throughout the year, they can help business owners stay more organized. The reason for that, is because business owners are having their receipts dealt with on a monthly basis instead of a yearly basis. Because it is a lot easier to lose seats after a year that it is after a month, this can help business owners be organized. Also, looking at the receipts on a monthly basis can help business owners remember what is going on with that receipts more easily. Business owners wait until the end of the year in order to get the information, they usually end up forgetting what all of those receipts are. This more accurate information gives the business owner more accurate financial information about their business.

This is extremely important if a business owner has been sense a audit request from Canada revenue agency. If a business owner is already organized by hiring Edmonton bookkeeping, it will be much more easy for business owners to respond within 30 days with a completed audit then it would if they did not have their receipts organized already. Since Canada revenue agency does not usually grant extensions, and if they do it is only 2 weeks, so business owners should be organized by hiring a bookkeeper, and avoid this issue.

By working with both Edmonton bookkeeping as well as an accountant, business owners can save time, save money, as well as avoid penalties for filing late, and be more organized throughout the year which gives them more accurate financial information. These are ultimately the secondary reasons why a business owner should work with a bookkeeper as well as an accountant, because the most important reason that a bookkeeper will allow the business owner to have more accurate financial statements throughout the year which can help them make better financial decisions and be able to operate a more successful business.