Many entrepreneurs do not understand how important it is to hire a great Edmonton bookkeeping company for their business. However, it is extremely important because bookkeepers provide for entrepreneurs, are up-to-date financial statements, as well as keeping their finances organized on a regular basis. This can help entrepreneurs make better financial decisions in their business, as well as state-organized so that they can have better corporate year ends done by their accountant. The reason why it is very important to ensure that they have the rights bookkeeper for their company is that anyone can call themselves a bookkeeper, so business owners need to be very aware of who they hire for the company.
One of the big mistakes that entrepreneurs make when hiring Edmonton bookkeeping company, is thinking that anyone who calls themselves a bookkeeper is qualified to do the job. A bookkeeper needs to have basic knowledge about taxes in order for them to do their job very well. If an entrepreneur is asking their bookkeeper to do payroll for them, the bookkeeper will need to know what sorts of payroll taxes they need to withhold from the employee’s checks as well as how much those payroll taxes need to be. They also need to understand when to remit those taxes and how often. Another example of why bookkeepers need to have basic knowledge about taxes is when it comes to GST. What supplies and services have GST charged to them? And when should a bookkeeper remit those taxes? These are some of the reasons why entrepreneurs need to ensure that they are hiring someone who is known to work on the books of their business.
Something else that entrepreneurs should keep in mind when hiring Edmonton bookkeeping for their business is what not only a bookkeeper is going to do in their books, but what are some of the administrative jobs that they are going to be doing for the entrepreneur. They should be doing administrative tasks such as organizing the business is receipts and expenses. They also need to ensure that things are filed properly such as invoices. Because the entrepreneur is having the bookkeeper or work on so much of the finances, they need to ensure that they are staying organized so that they can find the information that is needed when the entrepreneur needs them to find it.
It is also extremely important that there Edmonton bookkeeping company is able to communicate well with their accountant. Since the bookkeepers can be providing information for the accountant to work on, if they are able to work well with each other, or at least have the bookkeeper be comfortable enough to ask questions about how the accountant wants things, they can ensure that when it comes time to work on their corporate year-end, the accountant is familiar with what the bookkeeper has done and has provided to them. This can make working on the year-end not only easier but faster and more error-free.
When an entrepreneur is ready to hire an Edmonton bookkeeping company to work in their business, they should ensure that they are hiring the right professional for their job, because a bookkeeper who does not work on their books they will, will trigger all sorts of problems for the entrepreneur, at the very least because their finances to be disorganized and cost them time and money to fix. And at the very worst, it causes the entrepreneurs’ finances to be so out of date or done incorrectly, that they end up making poor financial decisions in their business.
One of the most important reasons why entrepreneurs need to understand what a bookkeeper needs to know is because anybody can call themselves a bookkeeper because there is no professional designation and no governing body. A business owner needs to be very aware that because anybody can call themselves a bookkeeper, they actually hire someone who has not only bookkeeping knowledge but has experience working with accountants or in an accounting firm so that they know that they have the right background knowledge.
The Edmonton bookkeeping company that they hire should have knowledge of accrual accounting, which is the type of bookkeeping that is needed when the entrepreneur provides services on one date, it has paid on another. The reason why this type of bookkeeping is so different is that there is a higher degree of probability that errors could happen because of the difference in invoice dates and the date that they receive payment. This needs a certain level of attention and due care.
It is also very important that the Edmonton bookkeeping company that they hire has tax knowledge as well. For example, if an entrepreneur is working on the GST, they need to know what expenses or what services get GST charged to them. They also need to know when and how to remit GST. If an entrepreneur sees that there is money that has been refunded to them from Canada revenue agency, the bookkeepers also have the knowledge to be able to understand what that refund is from so they can attribute it to the right GL their bank statement.
There Edmonton bookkeeping company will also be expected to provide support if an entrepreneur gets an audit. Because they have recorded most of the transactions and kept things organized, the bookkeeper should be able to help the entrepreneur figure out the nature of each of the transactions, and find the supporting documents as needed. Because entrepreneurs typically only have thirty days to respond to an audit request from the Canada revenue agency, a good and organized bookkeeper will allow an entrepreneur to respond in a timely manner.
Hiring the right bookkeeper is extremely important to business owners, they should be sure that the bookkeeper that they hire as the right knowledge in order to help the entrepreneur be organized, and have all of the rights financial documents they need in order to make great business decisions.