One thing that entrepreneurs may not consider when hiring Edmonton bookkeeping services for their business, is how vitally important bookkeepers are to helping entrepreneurs make financial decisions. Industry Canada says that half of all business owners fail within the first five years of their business and that 29% of those businesses fail because they ran out of money. The same study was done by industry Canada also says that only 11% of entrepreneurs ever seek professional help. The hiring the best bookkeeper they can for their business, entrepreneurs are hiring professional that can help advise them, and help them make the best business decisions possible, but also provide them with up-to-date balance sheets and income statements, so that they can avoid making decisions that could potentially end up costing them money.
Business owners often think that they can significantly save money in their business by hiring Edmonton bookkeeping services that are the most inexpensive they can find. Unfortunately, this method often backfires on entrepreneurs, because business owners who hire based on price may discover that the reason why the bookkeeper was inexpensive, was because they were inexperienced, and end up charging significantly more hours to complete the job than it would have taken a skilled bookkeeper. This can end up with an entrepreneur paying far more in bookkeeping services then they would have otherwise.
Entrepreneurs should also consider when hiring Edmonton bookkeeping based on price alone, is that they may end up with an inexperienced bookkeeper, who does not give if the workmanship is bad, and bookkeepers do not know exactly where to put information in the financial statements, business owners can end up with balance sheets and income statements that are incorrect. When they go to make financial decisions in their business and use income statements and balance sheets, they may think they are making great financial decisions, but actually negatively impacts their business. Since this is such an important aspect of what bookkeepers do, business owners should avoid trying to save money by hiring the least expensive bookkeeper they can find, but find the best bookkeeper they can find because what they will be able to save in additional fees and poor financial decisions far outweighs the bookkeeping fee.
Entrepreneurs should be asking some important questions when they are hiring bookkeepers for their business, including how much experience the bookkeeper has if they have any experience working in a public accounting office, and if they are working towards getting a chartered professional accounting degree. All these things can speak to the depth of knowledge and expertise that a bookkeeper has. The more knowledge bookkeeper has, the more accurate the balance sheet and income statements are going to be.
When hiring the right bookkeeper for business, entrepreneurs should understand that they should be getting one who is going to be able to help them get the right information to make business decisions and can answer difficult questions instead of hiring one that they think will help them save money.
When hiring Edmonton bookkeeping services for their business, entrepreneurs should understand that building a great company needs great people. There is a quote by business book author Jim Collins that says “those who build great companies understand that the ultimate throttle on growth for any company is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people.” Hiring a great bookkeeper in their business can help entrepreneurs have the right professional that can help them grow their business.
Since 50% of all Canadian entrepreneurs fail, and 29% fail because they ran out of money, by having up-to-date balance sheets and income statements in their business can significantly help entrepreneurs make better financial decisions in their business. Whether they need to make big decisions like purchasing assets are hiring staff, or smaller decisions like understanding if their marketing activities are working, or if they need to cut expenses, all of those decisions can be made much more confidently by having the right information. By getting regular balance sheets and income statements are extremely important to entrepreneurs in order for them to be able to make informed decisions any time they need to in their business.
One of the questions that entrepreneurs should be asking Edmonton bookkeeping services when they hire them, is how often are they planning on communicating with their clients. Although there is no real answer to this question, entrepreneurs should be looking for Edmonton bookkeeping services that have a real prepared answer, about how often they typically contact their clients. A good rule of thumb is regular communication and regular financial statements, the bookkeeping company always sends the interim financial statements to its clients biweekly. One of the reasons for that is so that business owners who pay their staff biweekly, can do so confidently by reviewing those financial statements before running payroll. In addition to that, the bookkeepers at always ensure that they are calling each of their clients to explain the reports every time they send them. This is so that business owners can ask any questions they need in order to understand the reports, and the bookkeepers can fix any mistakes that may be noticed by either the bookkeeper or the business owner.
Up-to-date and correct financial statements are vitally important to business owners making informed business decisions. Business owners should be ensuring that when they’re hiring Edmonton bookkeeping services, that they are going to be getting those interim financial statements in the form of income statements and balance sheets. They should be asking bookkeepers when they are interviewing them, but only what financial statements are going to be providing, but how often.
By being very prudent when choosing the right bookkeeper for their business, entrepreneurs can be certain that they are finding the best professional possible for their business, one that can help them avoid running out of money and more importantly one that can help them succeed and grow.