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One of the questions that many entrepreneurs have when they first get into the business, is is an accountant more important than Edmonton bookkeeping? Although business owners often try to save money when they first open their business by any means necessary, if they see tasks that a bookkeeper does as well as what an accountant does as the same thing, they would be very mistaken. While accountants play an extremely important role in helping the business owner stay financially organized, planning in their business, and filing their financial information, a bookkeeper is equally as important to entrepreneurs.

A very common scenario in small businesses is that an entrepreneur uses their vehicle as their office, and ends up having a big bag or box full of receipts as their filing system. When it is time for them to do their year-end, they take their giant box of disorganized receipts to their accountant in order for them to organize it to do their year-end. While an accountant may organize this for entrepreneurs, most of them do not like doing it, and then they do work on it, they will charge a business owner accountants fees to do the job. However, if a business owner is able to hire Edmonton bookkeeping to work on this for them, not only can the bookkeeper do it faster, they can do it at a much lower per hour rate, but also a bookkeeper will be able to do this for an entrepreneur on a regular basis throughout the year, instead of waiting until the year-end to do it.

The reason why getting it throughout the year instead of organizing it at the end of the year is important is that being disorganized takes far more time to organize, and if they file their taxes late, they can trigger penalties from Canada revenue agency. Edmonton bookkeeping can help entrepreneurs stay organized month-to-month, so when it is time to file their year-end, it can take their 12 months of organized finances to their accountant, and be less likely to run into any problems for their year-end filing. Accountants also prefer getting financial information from bookkeepers, because it is so well organized. Business owners can save themselves time and often money by utilizing bookkeeper.

Another reason why it is very important to have organized finances throughout the year, instead of just at the year-end according to Edmonton bookkeeping is if they are assessed and audited by Canada revenue agency. A business owner will have 30 days from the dates on the letter that they receive from the Canada revenue agency to do an audit and get back to them. If they do not have organized financials, doing the audit is going to take significantly more time which can end up triggering penalties, or costs significantly more money, because they are rushing through the process.

It is extremely important that business owners not only have an accountant they can trust, they are also working with a reputable and skilled bookkeeper in order to keep their finances up-to-date ongoing throughout the year. He can help them be organized, which can help them when it is time to file their year-end.

Many entrepreneurs look at Edmonton bookkeeping as doing a task that is less than an accountant, and by hiring an accountant, they can skip paying a bookkeeper, which saves them money on their financial services. Unfortunately, this is not true, business owners had hired both a bookkeeper as well as an accountant because what they do is very different. While an accountant will work on the year-end finances of the business and help them with tax planning and business planning, what a bookkeeper does is help entrepreneurs stay financially organized through the year, so that they can keep track of what is going on financially in their business.

If an entrepreneur is waiting until their year-end in order to review all of their transactions in their business, this can take far more time as well as create inaccuracies because a business owner is not going to be able to remember what each and every receipt is for one year later. By utilizing Edmonton bookkeeping on a regular basis, business owners will be less likely to lose those receipts, and also be far more likely to remember what those receipts are for if there organizing them on a monthly basis.

Also, Edmonton bookkeeping will give an entrepreneur interim financial statements including balance sheets, and income statements. The reason why this is important is that the interim balance sheet will show business owners the cash in their business, their Accounts Receivable, their accounts payable and their assets. Their interim income statement will show revenue, the cost of goods sold, expenses in their business and profit. This will help paint a picture of the financial health of the business throughout the year. It is very important for business owners to see in order to make decisions in their business.

One of the most important tasks a business owner will have financially in their business says Edmonton bookkeeping is putting expenses. If business owners are able to cut the expenses of their business, they can increase their profitability which is extremely important. By reviewing their interim income statements and interim balance sheets, business owners will be able to see what is expenses are at the top of their income statement, and what they can spend time reducing the cost of. If an entrepreneur waits until they get their financial statements from their accountant, they will have waited over a year to start making decisions about how to cut their expenses, which could significantly impact their finances.

By staying on top of their financial information, business owners can make better decisions about their business and ensure that their financial statements are accurate and organized. When they do this, they will be able to operate more successful businesses and avoid some of the reasons why many entrepreneurs before they fail. Team up with us and we can help you!