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When entrepreneurs do not understand what Edmonton bookkeeping does with their business, they may not be proactive in hiring them in their business which can be a huge mistake. Bookkeepers are vital to the functioning of the business because they help them stay organized with their financial statements, which can give them current information about this financial state of their business. Since 29% of all failed entrepreneurs site running out of money is the reason why their business failed, anything that business owners can do to help them make better financial decisions in their business to go an extremely long way to helping them be successful.

One of the first things that is organized with Edmonton bookkeeping can do for entrepreneurs helps them avoid filing their taxes late. By allowing their bookkeeper to stay on top of their finances every single month, business owners of way to the cliché of bringing a giant box of unorganized receipts to their accountant to organize. When accountants get that giant box of receipts, it takes them a long time to sort through, which causes entrepreneurs to have to file their taxes late. Not only does it cause them to file late, but it can also make entrepreneurs have to pay far more by paying an accountant and accountants fees to organize their statements instead of having a bookkeeper do it which is going to be far less expensive. What is also going to save expense is if they entrepreneur files late, then they will be assessed penalties by Canada revenue agency which continues to add to the amount that they are going to have to pay. Simply by being organized in business, entrepreneurs can save themselves money.

Another way that being organized by using Edmonton bookkeeping can help entrepreneurs, is if they do get an audit letter from the Canada revenue agency. Entrepreneurs typically only have 30 days to respond, and if they do not have organized financial information, they either have to pay someone a huge they to organize it very quickly, which is going to cost him additional money. However, if business owners are not able to pay someone a huge the in order to get their audit done time, they will be assessed with additional taxes from the Canada revenue agency. Either way business owners are ending up paying far more than they would if they were organized.

Entrepreneurs also need to understand that when they are not organized, they have to pay additional fees to organize those things instead of paying them to work on their finances. By hiring Edmonton bookkeeping proactively in their business, business owners can avoid penalties, avoid paying additional taxes and have up-to-date financial information in their business that can help them make better financial decisions. Since running out of money is one of the top 3 reasons why businesses fail in Canada, avoiding one of those reasons can help entrepreneurs increase their odds of succeeding in a business where many others have failed.

Entrepreneurs tend to think that accountants and Edmonton bookkeeping do the same job because they are both working on the finances of the business. Unfortunately, nothing could be further from the truth because while accountants work on the finances of the business, they are doing high-level activities such as year-end financials, business planning to help any entrepreneur grow their business, and tax planning, to help entrepreneurs avoid paying taxes and to help them pay themselves. On the other hand, bookkeepers are tasked with the job of organizing all of the payables and receivables of a business in order to give them interim financial statements that can help them make better financial decisions in their business. Industry Canada says that 50% of all Canadian entrepreneurs fail within their first 5 years of business, and that out of those failed entrepreneurs, almost one-third of them said that the reason why they failed was that they ran out of money. By helping business owners avoid running out of money helps them increase their chances of succeeding in business.

One of the ways that business owners benefit from hiring Edmonton bookkeeping is by receiving those interim balance sheets. When entrepreneurs get into the habit of reviewing the balance sheet, it is going to show the current financial position of the business, what money the business has, and what payables are going to be coming out and receivables are going to be coming in. The difference between a balance sheet and the bank balance is that the balance sheet shows everything that a business owner has coming else, and what the bank balance is going to be once everything clears, whereas the bank balance only shows things as they are today. If a business owner has a bunch of checks that are waiting to clear but they have not cleared yet, a business owner is not going to be able to see that by looking at their bank balance. When entrepreneurs get into the habit of reviewing their bank statements in order to make financial decisions, they could end up making bad financial decisions that could end up causing them to bounce payments.

When entrepreneurs look at the end income statements provided by Edmonton bookkeeping, entrepreneurs are going to be able to see what the revenue is of their business. The bookkeeper will have their income statement organized in numerically descending order so that the most expensive items are at the top of the list. If a business owner needs to save money in their business but looking at the top half of the list, they can get a better idea of what they should spend their time on to save money. For example, what should appear at the top of the list includes rent and administrative staff. The items at the bottom of the list include bank fees. No matter how much a business owner can save in bank fees, it is not going to hugely impact their business, while entrepreneurs look at the top of the list if they can drastically save money in their administrative fees, they can impact the finances of their business in a very large way.