If business owners are looking for ways to save money in their business, and wonder if they can save money by hiring only Edmonton bookkeeping or only an accountant, the best advice for them would be it is not advised to hire one or the other, successful businesses will hire both. 50% of all Canadian entrepreneurs will fail before being in business for 5 years, and 29% of those failed entrepreneurs say that the reason that they failed was that they ran out of money. By hiring a great bookkeeper and accountant, business owners can work to avoid this situation.
Although they both work on the finances of the business, entrepreneurs need to understand that Edmonton bookkeeping looks at the finances of the business close up and on a regular basis, and helps business owners get interim statements in order to help them understand the more immediate state of their finances, while an accountant looks at a higher level of the financials of a business, such as the year-round financials as well as the tax planning of a business meaning the amount of money that a business owner takes out of their corporation, and the business planning of the business, so that the business owner can make goals, and come up with the strategy on how to grow their business larger.
Because the two businesses do something very difficult for entrepreneurs, businesses should understand exactly whence Edmonton bookkeeping does, so that they can ensure that that is what they are getting from there service. The first thing that bookkeepers do is create interim financial statements for business owners to review. The information that some interim balance sheets are the cash in the business, Accounts Receivable, Accounts Payable as well as the assets business. Meanwhile, the information on the income statement from a bookkeeper is the revenue, the cost of goods sold, expenses and profit. Entrepreneurs need to understand that they should be looking at both the interim balance sheet and the interim income statement at the same time because the 2 work hand-in-hand with each other.
The reason why business owners should be looking at these on a regular basis and getting the interim statements from their Edmonton bookkeeping is that up-to-date financial statements can help business owners make financial decisions throughout the year. entrepreneurs are waiting for the year-end financial statement from their accountant in order to make financial decisions in their business, they could be missing out on opportunities. For example, business owners may need to know if they have money to buy an important asset that can help them grow their business maybe even because when assets broke down and they need to buy another one. An example of when a business owner cannot wait for their fiscal year-end to happen, and then another 6 months in order to get their financial statement. Business owners need more information in order to make great financial decisions. If business owners do not have this information on hand, the decisions they make could be more and could end up risking them running out of money because are making decisions that are not good.
One of the most common questions that entrepreneurs have does they need an accountant or did they need Edmonton bookkeeping. The answer to that question is definitely owe. Business owners need to have both an accountant and a bookkeeper to work on their finances. Both work on the finances of the business but do very different things. The bookkeeper works on the finances of a business on a more immediate and day-to-day basis, getting entrepreneurs interim financial statements that can help them see the financial health of their business immediately so that they can make better financial decisions. For example, if a business owner needs to purchase equipment in their business, if they do not have interim financial statements, they are just guessing if they have the money in their business to buy it. If they have interim financial statements, be able to make a decision on whether they can afford it or not I have seen the money that is in their corporation and what the revenue is. Since 29% of all failed entrepreneurs say that hiring a bookkeeper, entrepreneurs are more likely to avoid running out of money in their business.
Another thing that hiring Edmonton bookkeeping does, is helping the business owners be organized. A common scenario is that business owners keep big boxes or bags of receipts in their vehicles, and when it comes to needing to get their year-end not they bring that giant box into their accountant, who then has to charge an accountant the for organizing that entire mess. Since the receipts are old, a business owner forgets but each receipt is for, making the financial statement is inaccurate. The hiring of a bookkeeper, entrepreneurs can bring them it was it is every single month and in return, get organized interim financial statements that they can then financial decisions. At the end of the year when they are ready to file their year-end, the business owner brings their accountant is 12 organized statements.
While an accountant is capable of working on that disorganized receipts have an organized business owner, they are going to be charging the amount of money that accountants charge for their services, meanwhile the bookkeeper is working on it on a monthly basis, their fees are much lower, it also doing it on a regular basis can make them faster. One of accountant gets those organized statements at year-end, they will be able to work on the year-end much faster as well, continuing to save the’s. Business owners can save far more money by hiring both a bo Edmonton bookkeeping and an accountant at the same time. Business owners should understand that it is not a choice between one of the other, that the choice between the two should be both.