Hiring great Edmonton bookkeeping services in a business should not be brushed off as an unimportant task. Although many entrepreneurs believe that bookkeeping is the same thing as with their accountant does, or if they think they can save money by hiring the most inexpensive bookkeeper they can, business owners should actually understand what bookkeepers do, and therefore why hiring a great bookkeeper is so important in business. The first thing that an entrepreneur should understand is the high failure rate for entrepreneurs in Canada. According to industry Canada, half of all businesses in Canada fail, and 29% of those entrepreneurs say that the reason why they failed in business was that they ran out of money. If entrepreneurs can understand the role that bookkeepers play in helping entrepreneurs avoid that, they would be more careful in choosing a bookkeeper.
How entrepreneurs can utilize bookkeepers in order to avoid running out of money in their business, is because great Edmonton bookkeeping services are going to allow business owners to have up-to-date and correct interim financial statements. These balance sheets and income statements are going to give business owners current financial information in their business to help them make informed business decisions. For example, if an entrepreneur wants to buy an asset in order to help their business grow, if they look at their financial statements to see that they do not actually have the money in their business in order to make that purchase, they can avoid making that purchase in the moment, and then formulate a plan on how they can budget to purchase it. Without looking up that information first, business owners may purchase the assets, only running into financial problems later on in their business.
The biggest problem with hiring a great Edmonton bookkeeping service is that the bookkeeping industry is not regulated. With no governing body, bookkeepers do not need to fulfill any set of qualifications in order to call themselves a bookkeeper. If entrepreneurs are aware of this, they will be very prudent when they are hiring the right bookkeeper, to ensure they have the level of experience that they are comfortable with. For example, the company always bookkeeping has a team of bookkeepers all with public accounting office experience. That allows the bookkeepers to understand what a business owner is going to need to operate their business, how important regular interim financial statements are, and what questions they are going to need to ask the entrepreneur in order to completely understand their business.
When entrepreneurs take more care into choosing the right Edmonton bookkeeping service for their business, they will end up with a great financial professional that can help entrepreneurs not only avoid financial problems but can help them plan the growth of their business, so that a business owner can grow a successful and stable business. By doing that, business owners can beat the odds and avoid being one of that 50 % of entrepreneurs that fail in business because they ran out of money.
Many entrepreneurs do not understand the importance of hiring great Edmonton bookkeeping services for their business. Often thinking that bookkeeping and accounting companies do virtually the same thing. Entrepreneurs should understand the difference between the two, and why it is important to have both. While accountants do work on the finances of the business, they are concerned primarily with corporate year ends business plans and tax planning. Bookkeepers, on the other hand, are tasked with ensuring the financial statements of the business are up-to-date so that business owners can use that information to make business decisions. If entrepreneurs are making any decisions in their business without first consulting current financial statements, they are at risk of making poor financial decisions.
One of the most important things that entrepreneurs should keep in mind when they are hiring Edmonton bookkeeping services for their business, is that the key to having a great bookkeeper that can help a business owner is the level of communication. They should ask potential bookkeepers that their thinking of hiring how often they are going to be speaking with each other. Although there is no real correct answer to this question, the more communication, the better. Business owners should be looking for an answer around talking to their bookkeeper every time they get a new set of balance sheets and income statements. This way, the business owner can ask questions and understand the reports, as well the bookkeeper will be able to fix any errors and make any recommendations for the entrepreneur.
Business owners should also consider the timeliness of those interim balance sheets and income statements. A great Edmonton bookkeeping service is going to send those interim financials approximately biweekly so that a business owner always has current financial information in order to make business decisions. This is especially vital for companies that pay their staff biweekly. By ensuring they have the most current information before dispersing that payment can help entrepreneurs read easy. If they discover that they do not have enough money in their business to make that payment, that will give them enough time to generate more revenue either by doing more sales or getting administration staff on Accounts Receivable.
It is not just important that entrepreneurs receive those interim financial statements, but the format of those statements also matters greatly. A great Edmonton bookkeeping company will ensure that those interim financial statements will be a comparative six-month statement so that business owners are able to see up to six months at a time. This way, business owners can see trends and react proactively, or be able to easily see anomalies or errors in order to fix them for their accountant sees those errors.
It is vitally important to the success of the business to have the right Edmonton bookkeeping staff on hand in order to help an entrepreneur not only avoid financial problems but actually succeed and grow in business.