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Entrepreneurs should know that bookkeepers and accountants do two different things, and if they’re able to know exactly what the duties are said Edmonton bookkeeping, then entrepreneurs will be better able to hire the right bookkeeper for their business. Only 11% of entrepreneurs seek help when they need it, and hiring a great financial team for their business can significantly help business owners succeed in business.

The first thing that business owner should know is that since there is no governing body of bookkeepers, and no professional designation literally anybody can call themselves a bookkeeper. Because of this, entrepreneurs need to be extremely aware of any bookkeeper that they hire, and what their experience level is. They need to ask a lot of questions to verify how much experience their bookkeeper actually has. Ideally, they should be hiring a bookkeeper who has on their accounting experience, or experience working in an accounting office. The reason for that is because bookkeepers who have experience working with accountants are much better prepared to keep the books in a manner that accountants prefer. This can significantly help with reducing errors between interim financial statements in the year-end filing and minimize the amount of work that the accountant has to do at the end of the fiscal year. Bookkeepers and accountants should ideally work well in conjunction with each other, if not necessarily directly with each other in business. They are each one half of an extremely important team, that will help an entrepreneur understand their finances and be able to make great financial decisions in their business.

Bookkeepers should also know and have a basis in accrual accounting. Edmonton bookkeeping says that this type of accounting is necessary when an entrepreneur gets paid at a separate time than providing their products or services. If they are receiving payments at a different time, there is a higher chance that there could be errors either in receiving payments or in documenting the payments. Other terms in accrual accounting that there bookkeepers going to need to be familiar with are Accounts Receivable and accounts payable. Accounts Receivable is referring to the amount of money that the business owner is owed. They have provided the product or service but have not gotten paid for yet. On the other hand, accounts payable is the amount that the business owner owes others. They received a product or service but have not yet paid their invoice.

By understanding of the various duties of their Edmonton bookkeeping company, entrepreneurs can not only ensure that they are hiring the best bookkeeper they can for their business, but they’re also ensuring that there familiar with what they are doing, so they can have a deeper understanding of what their bookkeeper needs from them and how they are impacting their business. When business owners can understand this, they will be able to work very closely with their bookkeeper as well as their entire financial team to help them make great choices in their business.

Even if an entrepreneur has decided to hire an Edmonton bookkeeping company, and not only about keeping the books themselves, they should be familiar with some bookkeeping and accounting terms, not just so they can hire the best keeper for their business, but also so they can gain a deeper understanding of what they are doing, and how they are helping the business. By becoming familiar with some of the duties that a bookkeeper will be charged with, an entrepreneur can ensure that they are helping them do their job so that the entrepreneur can provide them with the tools and materials they need to do their job well.

One of the most important things that there Edmonton bookkeeping company is going to need to know, is some basic tax knowledge. For example, the bookkeeper will need to know what supplies and services need to get GST applied to them, and how much GST to remit to CRA. They also need to know when that GST is due. If the keepers do not have an understanding of what taxes they need to pay and when they need to pay them by, they could end up very easily missing filing dates, or sending the incorrect amount of tax to the government. What that will do is end up triggering penalties and interest charges that could easily have been avoided if they had simply known when to file various taxes. Another example is if they Edmonton bookkeeping company is doing payroll for the as-is owner, they will need to know exactly what taxes need to be withheld from each of the staff members, how much to withhold and when to remit. By not sending enough, or missing the remitting deadline, can cause entrepreneurs to have to pay high penalties.

Another common duty of a bookkeeper would be a bank reconciliation. Entrepreneurs need to get very familiar with what a bank reconciliation is, because of how important it is to a business, and when a business owner needs to have one prepared. A bank reconciliation is a term used for when an entrepreneur matches the transactions that they made in their business against the transactions that have shown up in their bank account. The reason why this is important is that if entrepreneurs are only looking at their bank balance to see how much money they have in their business, and they have outstanding transactions that are waiting to clear, they could end up spending too much money in their business, causing bounced payments. The need to ensure that there Edmonton bookkeeping company is doing their bank reconciliation prior to making any financial decision in their business.

By being able to hire the best bookkeeper they can for their business, entrepreneurs will be able to rest easy that they have someone taking care of their day-to-day finances, not only so that they can have great information in order to make business decisions with, but also so that they can know that the taxes that they are paying are correct and being paid on time.