Many entrepreneurs think that hiring Edmonton bookkeeping services is not a big deal in their business, especially if they have a great accountant, but arguably hiring bookkeepers is a more important decision than hiring an accountant, because of the frequency of the information they need to get from their bookkeeper it is. Since half of all entrepreneurs end up closing their business, and those entrepreneurs that fail say that the reason why they had to close their business was that they ran out of money. If business owners are able to hire great bookkeepers in their business, they may be able to make better financial decisions in their business that could have avoiding running out of money.
Whenever business owner needs to make financial decisions in their business, whether it is purchasing assets, hiring or firing staff, giving out raises, are paying themselves, a business owner should always be consulting their balance sheet and income statement to ensure they have the money at their disposal to do that. If entrepreneurs are counting on looking at their bank balance in order to see their financial situation, they may be doing themselves a disservice. The reason for that is because the bank balance shows the amount of money than the business owner currently has in their business. If they recently wrote a large check, but it has not yet cleared their bank account, a business owner may think that they have far more money than they actually do. If business owners make those decisions referring to the balance sheet, that balance sheet will show the finances of the business with all the payment information accounted for. This is how business owners can make better financial decisions based on interim financial statements.
Another way that having up-to-date financial statements can help entrepreneurs make great business decisions, is that if they are proactively looking at their revenue as well as expenses, they may see that their revenue is dropping, and use that information in order to engage in some revenue-generating activities, or implementing a new marketing strategy. If business owners are also proactive in looking at their expenses, they can see easily where they can spend time cutting costs in order to save a significant amount of money. This can only happen when business owners are getting great interim financial statements from Edmonton bookkeeping services.
One of the keys to hiring the best bookkeeper they possibly can is understanding how often they should be expecting to get great interim financial statements. Great bookkeeping companies such as always bookkeeping recommend that they always send out statements biweekly. This way, if business owners are paying their staff every two weeks the have the accompanying financial statements in order to allow them to do see if they have enough money in order to meet payroll, and if not, they can be proactive and either engage in some revenue-generating activities or get their administration staff to work on some Accounts Receivable in order to bring money and to meet payroll.
Great entrepreneurs understand that the key to making great financial decisions requires hiring the best Edmonton bookkeeping services possible. The reason why this is important is best explained by Jim Collins, the author of six business books including good to great 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. Is it is one thing above all others: the ability to get and keep enough of the right people.” Great bookkeeping in a business, can help business owners get those great people to help them build a great company. Even more to the point, Industry Canada says that half of all Canadian owners fail in business before their fifth year, and 29% of those entrepreneurs said they failed because they ran out of money.
The reason why hiring a great Edmonton bookkeeping service can help entrepreneurs avoid running out of money, is by being able to make better financial decisions based on better financial information. For example, current financial information can show an entrepreneur that they have enough money in their business to purchase an asset that a business owner can utilize to grow their business. If they make that decision without first checking their financial information, they may make the decision at the wrong time in their business, and end up running out of money.
When the way that business owners can ensure their hiring the right Edmonton bookkeeping that can help their business, is by asking several questions that can help them determine if they’re the right financial professional for their business. Since the bookkeeping industry is not regulated, business owners should know that anyone can call themselves a bookkeeper. Because of this, asking about the amount of experience that the bookkeeper has can be an extremely important question. Not only the amount of experience that they have, but it is the nature of that experience. Was it full-time, part-time, based out of their home or perhaps based out of the public accounting office? The more experienced, the more varied and the more office experience that Edmonton bookkeeping services have, the better chance they are going to be a good fit for an entrepreneur. Business owners should also be aware that accounting students also make great bookkeepers because they understand what a business owner needs in order to succeed, and they know what questions they should be asking those entrepreneurs defined of the information that they need
By hiring the right Edmonton bookkeeping service in their business, entrepreneurs can start making great financial decisions in their business confidently, knowing that they have all the right tools in place to make financial decisions that not only can help them avoid running out of money in their business, can help them grow a successful and stable business, that will allow them to operate their business for many years to come.