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A mistake that business owners make when they first start their own business is that they do not need an Edmonton bookkeeping because they have a really great accountant.while it is extremely important that entrepreneurs have a great accountant that can help them, because accountants help business owners avoid paying taxes, pay themselves a living wage, plan to grow their business through great business plans as well as file their year-end taxes, bookkeepers can help business owners organize their finances putting their accounts payable and Accounts Receivable on a regular basis so that business owners can get a good idea of where their finances are any given time in the year, which can help them make great business decisions. Making poor business decisions can cost entrepreneurs their entire livelihood. For example, industry Canada says that 50% of all Canadian entrepreneurs end up failing in business within the first 5 years. There are 3 main reasons why entrepreneurs say that their business failed, 42% said that they were not able to attract the right customers, 23% said that they could not find the right staff to work for them, and 29% of all failed entrepreneurs said that the reason why they failed was because they ran out of money. By utilizing the financial statements from bookkeepers, business owners can significantly reduce their chances of running out of money which drastically increases their chance of success.

One of the things that business owners get from having the bookkeeper work on their interim financial statements, is being organized. Being organized can ensure that they do not file their taxes late. Instead of bringing their accountant a giant box of unorganized receipts for the business accountants to have to go through, and organize while they are already pressed for time, business owners can take their accountant 12 great financial statements that have been prepared well in advance by their bookkeeper and help save time and filing their year-end. Business owners that violate also get assessed penalties by the Canada revenue agency.

Another way that entrepreneurs can save themselves money by being organized by getting financial statements done monthly from Edmonton bookkeeping is when they no longer have to pay their accountant huge and accounting fees to work on organizing their finances because it has already been done for them, the amount that they save and not having to pay extremely high accounting fees by paying bookkeeping fees throughout the year can make a huge difference to businesses. Also, they save money by not getting penalized for filing late.

Another way that business owners can save their business by utilizing Edmonton bookkeeping, is if they get assessed an audit by the Canada revenue agency. Typically, business owners only get 30 days to file their response to the audit letter, if they have been organized already by utilizing their bookkeeper, they will be able to respond within time, for no additional cost. If business owners do not respond in time, they will be deemed whatever taxes Canada revenue agency deems fit.

Business owners should be utilizing Edmonton bookkeeping in their business because that can help them stay organized throughout the year financially. One of the biggest mistakes that business owners make is making financial decisions based only on their bank balance and that is a big mistake. It is a mistake that could because them running out of money in their business. A sobering statistic from Industry Canada says that half of all Canadian entrepreneurs fail in business by their fiscal year, and 29% of all of those businesses that fail say that they ran out of money. By learning how to utilize interim financial statements instead of looking at their bank balance can help business owners avoid making poor financial decisions in their business and increase their chances of succeeding.

One of the biggest reasons why business owners should not be depending on their bank balance in order to make financial decisions is because the amount of money that is in their bank account is the only representative of what is in their bank account at that time. If they have written a bunch of checks to a bunch of vendors, if those checks have not cleared the bank account yet, it is not going to show them as being out of their bank. However, if entrepreneurs look at the balance sheet interim statement prepared by their Edmonton bookkeeping then they will be able to see what the financial state of their business is once all of the checks that have been written come out of their business and all of the payables that are due to come in their bank. By learning how to read their balance sheet, business owners can make better business decisions that cause them to run out of money.

Business owners should understand that financial decisions require good information that they can only get from Edmonton bookkeeping. A well-organized income statement is easy for an entrepreneur to read and it can show them the revenue of their business. This to numerically descending order so that the most expensive items are at the top of the list a business owner needs to cut costs in their business can see by focusing on the top of the list those of the things that they should be focusing on to save money. Items at the top of the list include administrative staff and rent. At the bottom of the list are items such as bank fees and utility bills. Even if the business owner is able to get all of their utility bills for free, that is not going to generally save them very much money every single month in their business. Looking at their revenue on the income statement is going to help them make better financial decisions that can help them avoid running out of money.

When entrepreneurs use the statements provided to them by Edmonton bookkeeping, they can be better prepared to make great business decisions that can help them become successful and avoid running out of money.