If business owners do not understand what their Edmonton bookkeeping company is supposed to do for them, they may not be able to hire the best professional for the job. If entrepreneurs are not hiring the right person, they can end up with larger problems, that could trigger errors in other areas of their business. As Red Adair, the specialist and extinguishing and capping oil well fires have said about hiring a professional, “if you think it is expensive to hire professionals to do the job, wait until you hire an amateur.” Hiring the right bookkeeper can help entrepreneurs stay organized and make great financial decisions while hiring the wrong bookkeeper can cause entrepreneurs to have incorrect financial statements that cause them to make poor financial decisions that could potentially cause them to run out of money in their business, as well as receive penalties from Canada revenue agency for not paying the right taxes, or paying them late.
It is extremely important that business owners are asking the right questions when hiring an Edmonton bookkeeping company for their business, and the most important reason for this is because anybody can literally call themselves a bookkeeper. There is no professional designation that bookkeepers need to have in order to be able to call themselves a bookkeeper like there is for accountants, doctors, and lawyers. Therefore, if an entrepreneur is not asking the amount of experience that potential bookkeepers have, they can end up hiring someone that does not have much knowledge, or experience to do the job. Questions that entrepreneurs need to be asking when hiring a bookkeeper, is how much experience do they have, to they have experience working in a public accounting office, and what schooling they have. His questions can help a business owner determine the level of experience that a bookkeeper has so that they can hire the best fit for their business.
One of the most important things that an Edmonton bookkeeping company will provide a business owner is bank reconciliations and interim financial statements. These reports are extremely important for business owners to have on a regular basis because they will show how much money they have to work within their business. If entrepreneurs are only looking at their bank statement, the may know how much money is in their bank account at that moment, but it does not take into consideration all of the pending transactions. However, a bank reconciliation, as well as interim financial statements, will. If the bookkeeper is not careful when entering the information, these were’s can end up being incorrect. If a business owner makes financial decisions based on incorrect interim financial statements, they could end up spending more money than they actually have.
In order for interim financial statements, they need to be staying extremely organized. Business owners should be keeping an eye on the tasks that their bookkeeper is doing, to ensure that there organizing receipts, expenses as well as invoices, sorted by date, and filed properly. This can be an easy way that entrepreneurs can verify that there Edmonton bookkeeping company is doing things properly, so they can be assured that they are entering information as carefully as their filing.
Edmonton bookkeeping | what does a bookkeeper do for businesses
a business owner should be very aware of the role of what Edmonton bookkeeping company does for their business so that they can ensure that they hire the best people for their business. If entrepreneurs think that their bookkeeper an accountant do the same job, therefore they do not need to be careful when hiring a bookkeeper, they need to understand that even though professionals work on the business finances, but they do are two entirely different things. Where an accountant is going to take care of the year-end filing, and they also help a business owner minimize their tax payments through the year as well as do a business plan so that they can become successful in their business, a bookkeeper does different things. They will be helping a business owner organize their day-to-day financials so that they can end up with interim financial statements, bank reconciliations, and proper taxes paid.
In order to ensure that a business owner is hiring the right Edmonton bookkeeping company to help them stay organized, business owners should know what information their bookkeeper needs to have in order to do that job well. One of the most important things that they need to ensure that their bookkeeper knows about, our business taxes. This is to ensure that their bookkeepers helping them pay their taxes not only on time but in the correct amount. If they are not paying their taxes properly, Canada revenue agency could hit them with penalties, late fees as well as interest charges. It can be extremely expensive for business owners to pay their taxes incorrectly, so it is important that there Edmonton bookkeeping company knows about business taxes. Some examples are payroll taxes, GST and federal and provincial taxes.
In addition to the taxes of a business, it is important that in Edmonton bookkeeping company also understands what the shareholder loan account is, and what it is used for. If the bookkeeper does not understand, they could business transactions into the shareholder loan account and properly, which would cause a business owner to pay personal taxes on business expenses. Since the personal tax rate in Alberta currently maxes out at 48%, and the small business tax rate is only 11%, that can end up being a large amount of taxes that a business owner end up paying if a bookkeeper does not fully enter things into their shareholder loan account.
Because of how important their business finances are, business owners should be very careful at who they hire to take care of organizing that information in their business. A great Edmonton bookkeeping company can help a business owner stay organized so that they can make informed financial decisions in their business that can help them grow. They should be extremely aware of the importance of a great bookkeeper so that they can ensure that they are hard only the best.