Businesses should understand the difference between Edmonton bookkeeping and accountants because but the to do are very different. When entrepreneurs are trying to save money in their business, they often think that bookkeepers and accountants do the same thing, so they think that by saving the fees of a bookkeeper, and making their business more profitable. However, industry Canada says that 50% of Canadian businesses fail, and only 11% seek professional help. Having a bookkeeper and an accountant at their disposal, they are more likely to get the financial help that they need to avoid running out of money in their business, making better financial decisions, and being better able to run a successful business

What Edmonton bookkeeping does is take care of the interim financial statements of the business. They organize the business owners receipts, their payables, and ensure that a business owner has interim income statements and balance sheets so that a business owner can make better business decisions in their business. While an accountant can do a lot of the same things, they are primarily focused on the year-end filings of the business, tax planning and business planning. In order for an entrepreneur to have the best financial information and advice, they should have both a bookkeeper and accountants because the to work very well in conjunction with each other to give a business owner the long term financials that they need to plan in business, and then the short term financials so that they can operate.

Many entrepreneurs do not even understand the information on an interim balance sheet and income statement and why they are needed. Edmonton bookkeeping says that on an interim balance sheet business owner can find information about the cash, Accounts Receivable, Accounts Payable as well as the assets in the business. What a business owner can see from the interim income statement is revenue, cost of goods sold, expenses and profit. Business owners need to understand that looking at both the balance sheet and income statement together work hand in hand. The income statement shows the money that the corporation is making, and the balance sheet shows the current financial position. Business owners should learn how to read both of these, in order to be able to make good financial decisions in their business.

One of the reasons that it is important, is because a well-organized income statement is easy to read, and lists all of the expense accounts simply and numerically descending order. One of the tasks of the business is to cut expenses, so if the business owner looks at the top half of their income statement, they will see that the most expensive expenses appear at the top of the list. If a business owner wants to minimize the expenses of the business, they should spend their time on the items that are at the top. Examples of things that are at the top of the list with the rent and administration staff.

One of the questions that many entrepreneurs have in business is do they need the Edmonton bookkeeping as well as an accountant? The answer to this question is of course they need both because they both do very important and very different things in a business. While they both look at the finances of a business, the accountant looks at the finances from a higher-up position, while the bookkeeper looks at the finances from the ground position. Accountants are primarily concerned with the year-end finances of the business as well as tax planning and business planning in order to help the entrepreneur make money out of their business in a way that minimizes taxes and plans business so that they can be successful, bookkeepers are tasked with organizing and staying on top of the finances of a business on a more day-to-day basis. This helps entrepreneurs have the information available to operate their business day-to-day with the right information.

The reason why it is important to have Edmonton bookkeeping at their disposal, if so that business owners can easily understand their interim income statements and interim balance sheets. Those 2 statements work together in order to give the business owner a clear picture of the finances of the business. The balance sheet shows the current financial position of the business, and the income statement shows what money the corporations making.

One of the first things that business owners are going to need to have this information for, is paying themselves. Business owners should not rely simply on what their bank balances in order to pay themselves. The reason for this, is if the business owner looks primarily at the bank balance to figure out how much money they have, that does not accurately reflect the situation that their finances are in. By looking at their balance sheet and income statement, business owners can start to see the state of their finances with all of the checks that are going out, and all of the payments that are scheduled to come in. If a business owner writes a check for $2000, it shows up on the balance sheet, but until it is cashed it does not show up on the bank statement. So if a business owner looks at their bank balance and sees that they have $2000 in the account but they have not to take into consideration that checks that need to clear, they may pay themselves and then have that $2000 check the benefits triggering many penalties.

This is why it is extremely important for business owners to hire Edmonton bookkeeping in order to take care of their day-to-day finances, so that they can learn how to read them and make better business decisions. Business owners should not make the mistake of assuming bookkeepers and accountants do the same thing, because business owners need both their business in order to run and operate a successful business.