Many entrepreneurs believe that their Edmonton bookkeeping company and accountant do essentially the same thing, except the accountant has more schooling. This is actually not true, business owners need to understand that what bookkeepers and accountants do are very different, even if they are in the same field. While they both work on the finances of the business, and accountant looks after the corporate year-end of the business, help entrepreneurs with their tax planning and some business planning, however, a bookkeeper actually is looking after the more immediate finances of the business. Ensuring that their finances are being kept up-to-date, providing entrepreneurs with interim financial statements, bank reconciliations and taking care of all of their various financial transactions. An entrepreneur needs to understand that the two do very different things, and if they have decided to hand off the bookkeeping duties to another professional and not do the books themselves, they need to be extremely aware of what the duties in a bookkeeper are, so that they can hire the most knowledgeable person they can for this role.
In addition to managing the day-to-day finances of the business, and Edmonton’s bookkeeping company can be tasked to do some administrative jobs in their business. Entrepreneurs need to understand that their bookkeeper is going to be organizing some of their finances for them. Billy organizing their receipts, expenses as well as invoices, sorting and entering them by date. Bookkeepers need to be very organized so that they can keep all of the business finances in a manner that allows them to pull them up whenever necessary. This is especially true when an entrepreneur is sent an audit letter from the Canada revenue agency. Since entrepreneurs only have thirty days to respond to an audit request, having a great and organized bookkeeper will help business owners respond to the audit request quickly and easily.
Even though Edmonton bookkeeping companies and accountants do different things, they often need to communicate with each other from time to time. It is especially important that a bookkeeper knows how the accountant likes to have their files, so that they can ensure that their coding things correctly so that when the accountant receives all of the interim financial statements that the bookkeeper has prepared, they are already familiar with the weights organized, and not only can help it and accountants do their job easily but quickly and more organized.
Since there is no required education that bookkeeper needs to have before they can take jobs bookkeeping, or even call themselves bookkeeper, entrepreneurs need to be very prudent when hiring the right Edmonton bookkeeping company for their business. Hiring a bookkeeper with prior bookkeeping experience is extremely important so that entrepreneurs know that their books will be kept well and properly. Ideally, business owners should look for a bookkeeper who has experience working with accountants, or in an accounting office, or even has gone through the accounting program in a postsecondary institution. By looking for these qualifications, business owners can be certain that they’re hiring the best bookkeeper they can for their business to keep their finances organized.
Hiring the right Edmonton bookkeeping company is extremely important for entrepreneurs, because contrary to what many business owners believe about being able to hire an inexpensive bookkeeper because their accountant will be able to fix any errors they make, hiring a great bookkeeper can help keep an entrepreneur organized financially, and provide them with interim financial statements that can help them make informed financial decisions in their business. If they are making mistakes when they are keeping their finances organized, business owners could end up with financial statements that are incorrect, causing them to make poor financial decisions in their business. Also, if their accountant has to fix a lot of errors, not only are business owners going to pay for their bookkeeping to be done poorly, they also have to pay their accountant even more money to fix those errors. As Red Adair, who specialized in extinguishing and capping oil well fires has said, “if you think it is expensive to hire a professional to do the job, wait until you hire an amateur.“ Hiring the best bookkeeper they can for their business can help entrepreneurs significantly in their business.
Understanding the various tasks and duties that they are Edmonton bookkeeping company will do for them, can help entrepreneurs understand the experience that their bookkeeper needs to have. One of the most important things that they need to ensure their bookkeeper has knowledge of our business taxes. If their bookkeeper is working on their payroll, they will need to know not only what taxes to withhold from their employee’s paychecks, but also how much of each text withhold also when to remit those taxes. For example, they must be submitted by the fifteenth every month, but they do not necessarily have to wait for that date. By understanding this, they will help business owners avoid having to pay penalties for late remittances, or remitting not enough tax. The penalties for this can be extremely steep, so business owners should ensure that they hiring someone that will help them avoid this issue.
Also, if an entrepreneur hires and Edmonton bookkeeping company without enough tax knowledge, they may end up with errors such as if they get a refund back from Canada revenue agency, and there is money deposited back into their business bank account, if the bookkeeper does not know how to figure out what that is a refund from, if it is GST refund, payroll tax refund, federal or provincial tax refund, then they will not know how to attribute it to the correct GL, it could end up triggering errors elsewhere in the financial statements of the business.
Business owners can understand some of the basic tasks and duties that a bookkeeper needs to know so that they can not only hire the right Edmonton bookkeeping company for their business, but also be watching to ensure that they are doing a job that the business owner expects, and is staying on top of the most important financial information.