The decision on which Edmonton bookkeeping company to hire should be taken extremely seriously, as seriously as the decision to hire an accountant. When business owners are considering which bookkeeper to hire for their business, they should keep several things in mind to help them hire the best keeper for their business.
One of the first things that entrepreneurs should always keep in mind when they are talking to potential bookkeepers, is that there is no professional designation for bookkeepers, therefore in order to call themselves bookkeeper, people do not need a certain amount of schooling or a degree. Therefore, anyone can call themselves a bookkeeper, regardless of how much experience they have or not. When business owners are talking to potential bookkeepers for their business, they should ask some very specific questions to determine the experience level that they have and to see if they will be a good fit for their business. The first question that they should ask should be about experience. Asking them how many years of experience they have is not as important as asking them what their experience has been doing. A part-time bookkeeper working for five years part-time in their home will have an extremely different experience as a bookkeeper who has years working full-time in a public accounting office. Not only should a business owner ask questions about experience, and where they worked, but what schooling they have. Some very great bookkeepers have gone through the chartered professional accounting program, some have not completed their degree, but have gone on to become extremely knowledgeable bookkeepers, and some are working towards their professional designation but need to gain experience. These are great options for business owners when choosing the right bookkeeper for their business.
Something else that entrepreneurs should keep in mind when hiring the right Edmonton bookkeeping company, is asking them if they had any experience with being audited or supporting accountants during an audit process. The type of experience and understanding Canada revenue agency once all information and files percent of them can help keep a bookkeeper very organized when it comes to their future files. Going through the audit process once ends to make bookkeepers organized moving forward, in case they have to go to the audit process again. It is very important to be organized for the audit because businesses only have thirty days to respond to the audit request, so hiring a bookkeeper that is familiar with that process is extremely vital whether a business gets audited or not.
know when hiring the Edmonton shipping company, entrepreneurs need to be very aware of several things to ensure that are hiring the best professional they can that is going to help them sign their business, having the right financial documents so that they can make the best and most informed decisions about how to grow their business in the future. Since 50% of all entrepreneurs fail within five years, and 29% say that they failed because they ran out of money, avoiding this by having extremely well-kept finances is extremely important.
If entrepreneurs think that they do not need to hire a great Edmonton bookkeeping company because they already have a great accountant, they should rethink that idea. While both bookkeepers and accountants work in the business finances for an entrepreneur, they both do very different things. An accountant works on the corporate filings of the business and tax planning as well as business planning, what a bookkeeper does is matches the more immediate finances of a business, giving a business owner the information they need in order to make informed day-to-day business decisions. Since only 11% of entrepreneurs ever seek help when they need it, businesses can consider a great financial team complete with a knowledgeable bookkeeper accountant as extremely vital to helping their business grow.
Hiring a knowledgeable Edmonton bookkeeping company is extremely important, and business owners should know what questions they need to ask in order to ensure their hiring the most knowledgeable professional out there. One of the most important things that bookkeeper is going to be giving a business owner on a regular basis are well done and up-to-date bank reconciliations. This is so that a business owner can match the transactions that happened in the business against the transactions that have already shown up in the bank account. The reason why this is important is that when entrepreneurs are going to make financial decisions in their business, whether it is paying invoices, running payroll, or making a purchase, they should consult the bank reconciliation to verify they have money in their bank account. If they have pending transactions in their business, looking just at their bank account is going to give them the right information.
Something else that business owners should ensure their Edmonton bookkeeping company knows how to handle, our shareholder loan accounts. If the wrong transactions are entered into the shareholder loan account improperly, it could cause and entrepreneur to pay more in taxes than they need to. If a business expense was put through to the shareholder loan account as a personal expense, this is what triggers that error. It can be extremely difficult for an accountant to try and fix after the fact, so business owners should ensure that their bookkeeper knows well upfront on how to enter and transactions into the shareholder loan account.
It is extremely important that business owners are very aware of what they need to know when hiring Edmonton bookkeeping company for their business because a great company is going to help them stay organized, and have great financial records so that they can make their day-to-day financial decisions. On the other hand, a poor bookkeeper is going to cause problems in a business when a business owner cannot count on their interim financial statements are bank reconciliation, or if they cause more errors for their accountant staff to fix at the end of the year. Hiring a great bookkeeper should be an extremely high priority for entrepreneurs.