If business owners are not sure what bookkeepers do, they may believe that they are saving money by hiring an accountant to do all of their bookkeeping instead of hiring Edmonton bookkeeping to help them their business. While it is true, business owners can get their accountant to work on some of the tasks that bookkeepers do, ultimately, and accountant’s focus is on more of the overall financial picture of the business, while bookkeepers are focused on helping a business owner organize their finances, giving them a picture of what is going on with their finances throughout the year.
The reason why having financial information throughout the year is so beneficial is because according to Industry Canada, 50% of Canadian businesses fail by the 5th year, and 29% of those failed entrepreneurs say that the reason why they failed because they ran out of cash. That same study also says that 11% of Canadian businesses that fail seek professional help. Since so few business owners seek professional help, by getting better information about their finances throughout the year, entrepreneurs can perhaps avoid running out of money in their business, but also they can have the financial information they need in their business in order to make better business decisions.
The first reason that business owners should utilize Edmonton bookkeeping is not been by being disorganized, can cause business owners to file late. By filing late, they can trigger penalties with Canada revenue agency. One of the reasons for this, is by being disorganized, business owners do not have all of their receipts, they forget what the receipts are for, do not have them organized by dates, and when this is what they have and they need to do their year-end, it is going to take a long time to organize that for their year-end. If they are late with their year and then they can get assessed penalties by the Canada revenue agency
Another reason that utilizing Edmonton bookkeeping is beneficial to entrepreneurs, is if they are assessed audits by the Canada revenue agency. When a business owner gets assessed for an audits, it is because Canada revenue agency has sent a letter in the mail that a business owner has 30 days to respond to from the date of the letter. Canada revenue agency does not usually offer an extension, and if they do it is only 2 weeks. The more organized I business owners can be at the time they get assessed an audit, can allow them to respond quickly to that audit and avoid being assessed penalties. If an entrepreneur does not respond to the audit request and time, Canada revenue agency will assess the business owner whatever tax they deem sense, no matter what their current finances look like.
There are several reasons why business owners should utilize Edmonton bookkeeping in addition to their accountant. They should consider its 2 parts of the team that works for hand in hand together.
Even though many entrepreneurs do not understand what a bookkeeper does, that should not dissuade them from hiring both an accountant and Edmonton bookkeeping in their business. The biggest reason is that while and accountants can do some of the tasks that a bookkeeper does, a bookkeeper’s focus for an entrepreneur is keeping their financials organized and up-to-date on a regular basis. Bookkeepers also cost less and accountants, so even if an accountant can do the job that a bookkeeper does, a business owner will be able to save themselves time and money by allowing a bookkeeper to help them out.
By keeping as business owner organized financially, and throughout the year, when businesses are ready to go to their accountant and file their year-end, the organized bookkeeping that Edmonton bookkeeping keeps for them, can mean that a business owner can save time with their accountant, which can also save them money with their accounting as well. Accountants generally like working with business owners who keep their financials up to date, because it helps keep them organized and not having to organize all the financials of the business for them.
By having up-to-date financial information, can significantly help business owners, because they will be able to see on a regular basis what their revenue is as well as what their expenses are and what their profit is. By getting interim statements from Edmonton bookkeeping, entrepreneurs can ensure that they know it is going on financially in their business so that they can make better financial decisions.
Not only can great interim statements help business owners were going on financially in their business, but it can also help entrepreneurs easily understand how much they can pay themselves. Well organized income statements and balance sheets can allow entrepreneurs to see how much money they have made in their business and how much money they are spending. They can also see if they do not have enough revenue to pay themselves, they can be proactive and generate more revenue in order to have enough money to pay themselves. This is especially true when entrepreneurs have employees and want to ensure that they have enough money in their business to pay their employees as well as themselves. When entrepreneurs hire Edmonton bookkeeping for their business, they will be able to ensure that they can pay themselves and their employees, and if they cannot for any reason, they know what they have to do in order to make that happen.
By hiring a bookkeeper as well as an accountant, business owners can have a powerful financial team that can help them stay organized financially, and know what is going on in their business at all times, so that they can make great financial decisions, and plan where they want to go in their business. Entrepreneurs should see hiring both as equally as important as the other. It will not do a business owner good to only have one half of this important team. Whatever your needs are, Spurrell and Associates would love to find a way to help you right now.