Entrepreneurs should consider Edmonton bookkeeping services as an extremely important part of their financial team in their business. While many business owners understand the importance of hiring an accountant, they tend to underestimate the value of great bookkeepers. However, bookkeepers provide entrepreneurs with up-to-date interim financial statements, they can help business owners significantly make informed financial decisions in their business, which not only can help them avoid running out of money in their business but can actually help them grow a successful and stable business.
There are several questions that business owners should be taking into consideration when they are hiring Edmonton bookkeeping service, in order to hire the best bookkeeper for their business. The first question is what should a bookkeeper be providing to their clients? Ultimately, the two most important reports that bookkeepers should be providing their clients are up-to-date balance sheets and up-to-date income statements. Not only is it important what reports they get, but business owners need to understand that they should be checking their balance sheet first and then looking at their income statement because if the balance sheet has any errors or unusual activity on it, the chances are quite high that the income statement is also incorrect. If entrepreneurs are relying heavily only on the income statement in their business without first verifying the accuracy of the balance sheet, this can lead to making poor financial decisions. The hiring the best bookkeeper that they can, they should be helping business owners understand this, so not only are they providing them with up-to-date interim financial statements, but they’re helping entrepreneurs learn how to read them properly and understand them.
The next question that entrepreneurs should be taking into consideration when hiring Edmonton bookkeeping services, is how often should entrepreneurs be receiving these interim financial statements from their bookkeeper? While there is no correct answer to this, business owners should consider how often they receive these financial statements can significantly help business owners make better financial decisions. If business owners are paying their staff biweekly, they should be looking at those interim financial statements before each and every payroll. Therefore, a good rule of thumb is business owners should be receiving these financial statements every two weeks from their bookkeeper. The team at always bookkeeping ensures that not only are they sending off those interim financial statements, but they’re also providing the financial statements with four or five months at a time, so business owners can see trends, and it is a great way in order to spot errors or anomalies that can then be fixed immediately instead of waiting for the accountants to catch it at year-end.
When entrepreneurs are hiring Edmonton bookkeeping services in their business, they should be considering how communicative their bookkeeper will be, and be asking questions to find out how often they should be hearing from their bookkeeper and how often they should be receiving these financial statements. More up-to-date financial statements they get, better decisions they are going to be able to make in their business.
If entrepreneurs do not fully grasp how important hiring the right Edmonton bookkeeping service is for their business, they should take a look at the industry Canada statistic that says half of all Canadian entrepreneurs fail in business before their fifth year, and 29% of those failed entrepreneurs say the reason why they failed is because they ran out of money. By getting great financial statements from their bookkeeper, entrepreneurs are able to use those statements in order to make better decisions in their business, which can help them avoid running out of money and increase their chances of succeeding.
Business owners should understand the advantages of getting up-to-date financial statements, because all of the financial decisions that an entrepreneur needs to make in their business, whether it is larger decisions such as purchasing assets or hiring new employees, or smaller decisions like can they afford to run payroll, or give out raises can all be made more confidently and easily by consulting interim financial statements. Also, business owners can use those financial statements to see how the prophets of their business are doing, and if they need to cut expenses, generate more revenue, or increase their marketing activities. Receiving up-to-date reports can help business owners be more proactive in those decisions, that can help them positively impact their business.
Another question that business owners can consider when reviewing their interim financial statements with their Edmonton bookkeeping service, is asking them if there is anything that is wrong or out of place with those financial reports. Business owners should be seeing if there are any obvious errors or anomalies and asking their bookkeeper about them. This can help business owners understand if there are errors, or if anything bizarre happened in one month that did not happen in any other month that can explain why finances look odd. Rather than waiting until speaking to their accountant at year-end to find out that there have been errors.
The last question that entrepreneurs should be asking in order to hire the right Edmonton bookkeeping service for their business, is how can a good bookkeeper save entrepreneur money? By having regular reports ready on a consistent basis so that business owners are able to make better financial decisions in their business, and by saving on accounting fees by getting their accountant organized files to work with. Organized files mean the accountant needs to do less work in order to complete the business owners’ corporate year-end.
Hiring the right Edmonton bookkeeping service for their business, entrepreneurs are ensuring that there able to make the best financial decisions possible, ones that can help them avoid running out of money, and help them see when it is necessary to increase the revenue in their business, so they cannot only avoid problems but continue to grow their business and become successful.