Bookkeeping Services From $150 Per Month

No Catch Up Fees & Free Incorporation

Get Started

One of Edmonton’s highest rated Bookkeepers!

Edmonton Bookkeeping Icon 5 Stars

Read Reviews

Edmonton Bookkeeping Preferred Bookkeeper

Business owners may not understand how vitally important great Edmonton bookkeeping is in their business by having current and up-to-date books, it can help entrepreneurs make better financial decisions in their business that can help them not only avoid running out of money in their business but be proactive and use the information to grow their business. It does not have to be hard or time-consuming to be organized so that whoever does the books in a business, they can have the information on hand in such a way that helps them keep the financial statements accurate on a regular basis.

There are several tips that entrepreneurs can use in order to ensure that they are keeping things simple as possible for Edmonton bookkeeping. The first thing that entrepreneurs should keep in mind extremely early in their business, is that they should never use their personal bank account for business expenditures. If entrepreneurs can avoid this as early as possible in their business, they can out of habit that many entrepreneurs still have a hard time breaking. If business owners use their personal bank account for business, that means whoever is doing their books has to go through every single expenditure in the personal bank account in the business bank account, questioning and verifying each of the purchases. Not only can this be time-consuming, but there is a chance that it can lead to errors if not done carefully. Instead of chancing incorrect financial statements for this, business owners can just simply never use their personal bank account business.

On the topic of bank accounts, entrepreneurs should also keep in mind that it is much more simple as well as cost-effective to only have one business bank account that is used for operating expenses. Entrepreneurs often think that they can keep more organized by having multiple accounts, and use those multiple accounts for keeping their finances organized. For example, having a bank account for their GST payment, a bank accounts for their federal tax payment, bank account for their payroll. However, Edmonton bookkeeping says that this actually makes it more difficult, because they have to keep track of many accounts and many expenses. Not only is it easier, it is also more cost-effective as entrepreneurs do not have to pay multiple bank fees.

Entrepreneurs should also keep in mind that they should have only one credit card as well. It might be tempting for entrepreneurs to have multiple credit cards in order to maximize the money they have for purchases in their business, but from an Edmonton bookkeeping standpoint, this actually adds difficulty to keeping books. Business owners should avoid the temptation to have multiple credit cards in their business, and have one business bank account, one credit card and then never use their personal bank account for business. By doing this, entrepreneurs are setting their books up for success, and ensuring that no matter who is looking after taking care of the finances in the business.

One of the most important reasons for entrepreneurs to priority on Edmonton bookkeeping in their business is because having current financial statements in their business can actually help them operate their business easier. Industry Canada has some sobering statistics that say half of all entrepreneurs in Canada fail in business by their fifty year. 29% of those failed entrepreneurs say that the contributing factor to their businesses fail is that they ran out of money. Business owners can help avoid this issue in their business, by consulting up-to-date interim financial statements before making any payments, or any purchases.

By utilizing the financial statements in their business, entrepreneurs can be proactive in their business, looking at the revenue, if it starts to drop they can increase their marketing or engage in some more revenue-generating activities. If there keep an eye on their expenses, they will be able to spend time minimizing them. Most importantly, if entrepreneurs are looking at the balance sheets and verifying how much money they have in their business before they make any payments or purchases, business owners can avoid paying their business into a situation of being financially taxed, or even running out of money.

The hiring Edmonton bookkeeping services in their business, entrepreneurs are ensuring that they have the tools at their disposal to be able to make those decisions and be proactive. In order to achieve this, entrepreneurs need to ensure that in their schedule is time to send all of their finances off to Edmonton bookkeeping on a regular basis. If entrepreneurs do not put the time in their calendar for this, chances of it happening are dramatically reduced. It should not take entrepreneurs very long to get into the habit of organizing their finances and send them off on a regular basis.

Business owners should also be ensuring that there hiring and Edmonton bookkeeping service that is going to give them interim financial statements every two weeks. Most bookkeepers are only giving the financial statements every month, but a business owner should actually be receiving them as often as they make cash disbursements. Therefore, if entrepreneurs are paying their staff every two weeks, they should be getting statements at least that often. By getting into the habit of reviewing their balance sheet before they disperse any payments, business owners can ensure that there never putting their business into a situation of running out of money bouncing that payment. If business owners see that they do not have enough money in their business to allow them to run payroll, by being proactive in their business, and having enough time between cut off and payday, business owners can utilize accounts receivable, or generate more revenue in order to be able to meet that payment. By being proactive, business owners can ensure that they are not putting their business at risk of running out of money, and that there able to act proactively enough in their business to bring in the cash when they need it.