Entrepreneurs often believe that if they have a great accountant they do not need to worry about hiring a great Edmonton bookkeeping service for their business. However, it is extremely important that business owners have great accountants and bookkeepers in order to help them make the best financial decisions that can for their business. Industry Canada says that 50% of all Canadian entrepreneurs fail in business before their fifth year and that 29% of those failed entrepreneurs say that the reason why they failed is that they ran out of money. But having a great financial team including an accountant and a bookkeeper can help entrepreneurs have the right people around them in order to make the best financial decisions they can to grow their business.
When entrepreneurs are looking at hiring Edmonton bookkeeping services, they should understand that because the bookkeeping industry is not regulated at all, and anyone can call themselves a bookkeeper regardless of their qualifications, it is vitally important that entrepreneurs interview each of the bookkeepers that they are contemplating hiring, to see how experienced they are, and how they work. Some great questions that an entrepreneur should be asking their bookkeepers include how much experience do they have. Since there is no professional designation, this is a great question that business owners can use to determine if the bookkeeper that they are thinking of hiring is the right business professional for them not only the amount of experience that the bookkeeper has is important, but what that experience is. For example, was it working in a public accounting office? Or was it part-time out of their home? These are important differences to make in order to help an entrepreneur determine if it is the right bookkeeper for their business or not.
Another way business owners can make the decision on which Edmonton bookkeeping service is best for them, is how they end up failing. The reason why this is important is that when bookkeepers charge an hourly rate, that means the slower they work the more they will be able to bill. Business owners should not be worrying if their bookkeeper is working slowly too so that they can bill more money. Also, this is owners need to realize that by building hourly, an entrepreneur is never certain how much they are going to get build per month. If a business owner has an extremely successful month, that may mean that they have more transactions and the bookkeepers will charge more money. a great Edmonton bookkeeping service to hire will be one that charges their clients a flat monthly fee. This way, a business owner can plan their cash flow, and ensure that they never get a surprise bill that there unable to pay.
Extremely important for business owners to be present and making the decision on which Edmonton bookkeeping service they hire for their business because the difference between hiring a great bookkeeper and a poor bookkeeper could actually mean the difference between succeeding in business or having to close the doors.
When entrepreneurs are building a new business, the last thing that they should be worried about is saving money on Edmonton bookkeeping services. They may believe that it is a great financial decision to save money this way, however business owners should understand the consequences of hiring an inexperienced or inexpensive bookkeeper.
If business owners understood the consequences of hiring inexperienced bookkeeping, they would think twice. One of the ways it can affect their business is by having those bookkeepers prepare incorrect balance sheets and income statements. While this does not seem like it is a huge problem, especially because many entrepreneurs think that their accountant will be able to fix that information at year-end, if entrepreneurs are using those interim financial statements in order to make business decisions, having incorrect information on those interim statements may end up making a business owner choose the incorrect financial decision, that could negatively impact their business.
Another reason why incorrect financial statements can negatively impact the business is when an accountant has to fix that information at their year-end, a business owner will inevitably have to pay the accountant an extra fee for fixing that information, meaning entrepreneurs are paying for the bookkeeping service as well as the accountant to fix it. If it takes the accountant long enough to fix their poor bookkeeping, it may cause a business owner to file late triggering penalties from the CRA.
The hiring a great Edmonton bookkeeping service in their business, business owners cannot only ensure that the balance sheets and income statement that they get on a regular basis are correct, but they’re also going to be able to speak to their bookkeeper on a regular basis that can help them decipher the reports, ask questions and be able to have a business professional that they can use in order to help them make better financial decisions in their business.
When entrepreneurs are choosing the right Edmonton bookkeeping service to hire in their business, they should not only be considering price, but they should be considering what that bookkeepers going to be able to do for entrepreneurs. Regular communication, regular and correct balance sheets and income statements, but another thing that business owners should consider when hiring Edmonton bookkeeping services, is that the additional information that they can get which includes a snapshot of their finances for the six months at a time. Business owners should not just be expecting to get monthly financial statements, but being able to see months at a time is a great way for business owners to see trends in their business and catch mistakes. Hiring a great bookkeeper in their business can mean the difference between making a great financial decision that can help them grow their business, or making a financial decision that could end up costing the business owner money which could either lead to financial hardship or lead to them having to close their doors due to not having enough money.