If business owners do not understand how important Edmonton bookkeeping is for their business, then that they may not put the right do care and diligence into hiring the right professional for their business. However, they should understand that a great bookkeeper can help them stay organized financially, have great statements that can help them make financial decisions, pay taxes on time and stay organized through an audit. It is not just important that business owners have a great accountant, that if business owners are going to be hiring someone else to be looking after their bookkeeping, they need to be careful and hire the right one for their business, is that they can use that information in their business to help them grow.
One of the most important things that entrepreneurs should keep in mind when they are hiring an Edmonton bookkeeping company, is that anybody can call themselves a bookkeeper. Because there is no professional designation and therefore no governing body on the profession, anyone can say that they are a bookkeeper. Even if they have hardly any experience, or have been self-taught on their accounting software. Because of this, business owners should know what questions they need to ask in order to hire the best bookkeeper possible. Some questions that they should keep in mind include how many years of experience they have had doing bookkeeping, and where that experience is been. Ideally, business owners should look for an Edmonton bookkeeping company that has experience working with accountants, or in a public accounting office. This type of experience is invaluable and can help bookkeepers understand what types of knowledge entrepreneurs need.
Another reason why business owners might want to hire an Edmonton bookkeeping company that has experience working with or in an accounting office is so that they know how to keep records in a way that an accountant would like it as well. This can help accountants minimize errors, and the more organized when completing the corporate year-end for the entrepreneur. There might be instances where the bookkeeper and accountant need to talk to each other, so hiring an Edmonton bookkeeping company with experience talking to accountants can be invaluable to this end.
Business owners should also consider hiring a bookkeeper that says that they have experience giving support during an audit. Once an Edmonton bookkeeping company has been through an audit process with Canada revenue agency, they tend to understand how organized they need to be, and the way Canada revenue agency wants to keep their information. If they hire a bookkeeper who has gone through this process, they will typically be far more organized the businesses that they work with, to ensure that if those businesses get audited, they can help the business owner get through it and stay organized.
By hiring the right Edmonton bookkeeping company for their business, business owners can be assured that they have someone that is working with them to help them stay organized, get their corporate year-end done, and have all the right information to give Canada revenue agency.
Business owners should put a lot of work into hiring the right Edmonton bookkeeping company for their business. The reason for this is because bookkeepers play a significant role in helping a business owner keep their day-to-day finances organized, and help them ensure that they are keeping the right records in their business. They provide interim financial statements that business owners can use to make great financial decisions in their business, pay a minimal amount of taxes by it coding purchases correctly, and helping business owners pay their taxes properly. Because of the importance of this, entrepreneurs should ensure that they are taking the right care into hiring the bookkeeper with the best knowledge possible.
They should ensure that they are hiring an Edmonton bookkeeping company that has tax knowledge. Because if an entrepreneur pays their taxes incorrectly either by paying too little, or not on time, then they may end up being hit with penalties, interest, and late fees from Canada revenue agency. There is a large number of taxes that business owners have to pay including payroll taxes, GST, as well as federal and provincial taxes. And unlike most other provinces, Alberta businesses must pay their provincial taxes separately, so it is extremely important in order to pay taxes properly, that entrepreneurs hire the best keeper that they can. Also, they need to hire someone who is very familiar with taxes in case a business owner gets a refund from CRA. The bookkeeper will need to know how to tell what refund is being given so that they can attribute it back to the correct GL in their financial statements.
Another important task of the Edmonton bookkeeping company is understanding what the shareholder loan account is, and how to attribute transactions to it. If a business owner pays a company Bill out of their personal bank account, then the corporation ends up owing them money. However, if an entrepreneur has the business paying for personal expenses, they owe the corporation. At the end of the year, a business owner will pay personal taxes on all of the money that they took out of the corporation for personal use. Therefore, it is extremely important that the Edmonton bookkeeping company accounts for these transactions properly. If they have business transactions being coded as personal in the shareholder loan account, that can cause the business owner to pay up to 48% in personal taxes on purchases that they should have only paid 11% corporate tax on. This can be extremely difficult to find and fix, therefore it is extremely important that this happens at the moment.
Hiring the right Edmonton bookkeeping company is extremely important to ensure that business owners are staying organized financially, and being able to use that information to make the best financial decisions possible. Business owners should take very careful consideration when hiring a bookkeeper so that they can end up the best business professional possible.