Entrepreneurs need to understand what an Edmonton bookkeeping company does for their business, in order to help them pick the best bookkeeper. One common mistake that business owners make when hiring a bookkeeper, is that they have a great accountant, therefore they do not need to hire a great bookkeeper. They think that they can save money in their business, and that can end up causing problems. Bookkeepers and accountants do very different things for entrepreneurs, and hiring a bookkeeper who is not experienced with working with entrepreneurs causes many problems. It could create errors on the financial statements of the business, causing the business owner to not be able to make good financial decisions, and could cost extra their accountant to have to fix at their year-end.
By understanding what duties a bookkeeper needs to do for their business, can help entrepreneurs pick the best bookkeeper for their business. One of the first things that entrepreneurs should keep in mind, is that there is no professional designation required in order to call themselves a bookkeeper, so entrepreneurs need to be very aware of who their hiring in their business. By asking them some questions about the level of experience that they have, business owners can find out if the bookkeeper has enough experience as well as the right experience to work in their business. One of the first things that entrepreneurs should ask, is if they have any experience working in a public accounting office, or working directly with an accountant. That type of experience can be invaluable in helping a bookkeeper no most important information for entrepreneurs to have, as well as getting the financials in the type of order that the business bookkeeper prefers.
In addition to the right experience, business owners should ensure that there Edmonton bookkeeping company is very knowledgeable about corporate taxes. It is not just enough to know what taxes need to be paid, but what amount and when to remit them. If entrepreneurs pay too little in taxes or submit payment late, they could be hit with penalties and interest charges. Some of the taxes that need to be paid, the very steep interest charge if an entrepreneur pays them late, and it can greatly and negatively affect their business finances. Ensuring their bookkeeper has more than just a cursory knowledge of corporate taxes can help a business owner make the right decision.
Something else that entrepreneurs need to keep in mind when hiring an Edmonton bookkeeping company, is that they hire one that has been through an audit before. Once a bookkeeper has experience assisting at business owners get through an audit request from the Canada revenue agency, they tend to be more organized and keep their filing in a specific way. If entrepreneurs can ensure that the bookkeeper has had audit experience, it will be extremely organized with the way they keep their books.
By looking through the various duties and qualifications of their Edmonton bookkeeping company, business owners can be sure that there hiring the right professional to work on their business finances.
Hiring the right Edmonton bookkeeping company can make a huge difference to the business finances of an entrepreneur. Properly done interim financial statements and bank reconciliations can be powerful tools for entrepreneurs to use to make great financial decisions. In order to help entrepreneurs find the best fit for their business, they should learn the most important information for their bookkeeper to know.
It is extremely important that business owners have someone working on their business finances that is familiar with shareholder loan accounts. The reason this is important is that the transactions that are entered into the shareholder loan account are used for entrepreneurs to pay personal taxes. If more business transactions were put into the shareholder loan account under personal, it could cause the business owner to have to pay personal taxes on all of those business expenses. The reason why this is so important to keep organized is that the personal tax rate in Alberta tops out at 48%, while the small business corporate tax rate is only at 11%. If the wrong amounts are put into the shareholder loan account, businesses can end up paying far more personal tax than they need. Hiring an Edmonton bookkeeping company that is familiar with shareholder loan accounts, can help entrepreneurs avoid paying unnecessary personal tax.
It is also very important that entrepreneurs know that there Edmonton bookkeeping company is familiar with accrual accounting. This type of accounting is used whenever a business gives a product or service at a date that is different than when they get paid for it. There is a higher chance of errors happening with this type of accounting, so bookkeepers need to be aware and know how to deal with errors, late fees, interest charges to name a few. They also need to be very familiar with terms Accounts Receivable and accounts payable, because these terms are used frequently in accrual accounting.
The best Edmonton bookkeeping company for their business will also know what receipts to keep and how to organize them. In fact, their bookkeeper will build the do some administrative work including organizing invoices, expenses, and receipts as well as filing them. It is important to keep organized in case the bookkeeper or the business owner needs to recall information, but most ardently if the Canada revenue agency sends the business an audit request. It is important to be organized because business owners only have thirty days to respond.
Business owners should take the task of hiring the right Edmonton bookkeeping company very seriously in their business, because even if they have a great accountant, what an accountant and bookkeeper do are two different things, but together they can ensure that the business owner is making the best financial decisions in their business, and helping them to grow their business very successfully.