There are several things that entrepreneurs should be considering when hiring Edmonton bookkeeping services for their businesses. The importance of a great bookkeeper should not be overstated, as industry Canada statistics say that 50% of all Canadian businesses fail before their fifth year in business, and 29% of those businesses say the reason why they failed was that they ran out of money. The hiring a great bookkeeper for their business, entrepreneurs can develop a team of financial professionals who can help them make great decisions in their business, they can have them avoiding running out of money, and instead of growing a successful and stable business.
One of the ways that great Edmonton bookkeeping services can help entrepreneurs make better financial decisions, is by getting up-to-date and correct balance sheets and income statements on a regular basis. Any time a business owner needs to make a financial decision in their business, reviewing great interim financial statements can help business owners make that decision using facts. Whether the decision is purchasing assets, hiring staff, or seeing how effective their marketing strategies have been or if they need to cut expenses, every decision that a business owner needs to make can be made better by reviewing the financial information they have.
Another way that great bookkeeping services can help entrepreneurs run successful businesses, is once they get up-to-date interim financial statements, they should also be having a conversation with their bookkeeper. By setting aside time to call their clients and discuss the reports, to allow the entrepreneur to ask questions, discuss anomalies or fix errors, the bookkeeper can ensure that the entrepreneur not only understands the information they get but that it is current and error-free.
When great bookkeepers send the information off to their clients, they ensure that it is not just the current month information that they send. When bookkeepers send a snapshot of what the last 4 to 6 months look like at a time, business owners will be able to better see any anomalies or errors that have existed in the statements. The also be able to see various trends in their business if things are trending up or trending down which can allow business owners to be proactive in generating new revenue if needed, raise it is an opportunity to project changes they need to make in the future to allow that continued growth.
When entrepreneurs are able to hire great Edmonton bookkeeping services for their business, they not only have good tools their disposal to help them operate their business, they also have the opportunity to use the expertise of the bookkeeper that they have, in order to help them make those decisions, and that expertise can be invaluable to entrepreneurs as they navigate the sometimes difficult world of business ownership. By being able to talk to financial professionals when they need, entrepreneurs should have the confidence to be able to make the decisions they need in order to grow their business and become successful.
If entrepreneurs do not understand the importance of hiring great Edmonton bookkeeping for their business, they may not be hiring the right professionals to work with, which means they could put their business at risk by not being able to make financial decisions properly. Industry Canada says that half of all Canadian entrepreneurs fail in business, and 29% of them fail because they ran out of money in their business. The hiring a great bookkeeper in their business, entrepreneurs will have up-to-date financial statements in order to aid them in making their business decisions that affect their finances.
Often, entrepreneurs think that it is a prudent decision to hire their Edmonton bookkeeping service based on an hourly fee. While this might make sense to some, business owners should understand the consequences of hiring an inexperienced bookkeeper. Inexperienced bookkeepers potentially end up doing poor work that then needs to be redone by the business owners accountant at year-end. That additional time spent means additional accounting fees which can be significantly higher than the inexpensive bookkeeping fee that they may have been charged. Worse than that, if redoing the financials mean that an accountant is not able to get that business owner year-end financials filed with Canada revenue agency on time, business owners may also be hit with penalties.
Another reason why hiring an inexpensive bookkeeper may not be in the business owner’s best interest, is that improperly done finances can also mean that the balance sheets and income statements that a business owner receives on an interim basis may not have the correct financial information on it. What this means is as a business owner uses those statements in order to make financial decisions in their business, they may end up making decisions that look good on paper, but actually not beneficial looking at the actual financials of the business. Since a significant portion of failed businesses say that running out of money was the reason they failed, this can happen to business owners simply by receiving and correct balance sheets and income statements.
Business owners need to be very prudent when choosing the right Edmonton bookkeeping service, in order to choose the right one for their business. Since there is no governing body and anyone can call themselves a bookkeeper, business owners should be very aware of hiring the best, and that can only be done by asking specific questions about their experience. When a business owner determines the level of experience of their bookkeeper, and see if it matches with their business, then they can be more confident that the bookkeeper that they hire can be the financial professional they need in order to help them grow their business and avoid financial disaster. When business owners do this, they can ensure that Edmonton bookkeeping services and significantly help their business, and they can beat the odds and become one of those business owners that succeed in business instead of failing due to lack of money.